U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
 
Old 09-11-2013, 02:26 PM
 
210 posts, read 362,433 times
Reputation: 86

Advertisements

Peace be on you. Can something be done to finish US deficit (and of others too) if this money comes back?

Quote:
...around the world the extremely wealthy have accumulated at least $21 trillion in secretive offshore accounts. That’s a sum equal to the gross domestic products of the United States and Japan added together....
Source:Super Rich Hide $21 Trillion Offshore, Study Says - Forbes
Rate this post positively Quick reply to this message

 
Old 09-11-2013, 08:21 PM
 
Location: Here.
15,454 posts, read 14,058,340 times
Reputation: 18082
Not sure what the question is. Are you asking could this money be used to pay off the federal debt? The answer is yes, if the government is able to collect it in taxes (would take time and probably not all of it will be collected unless new taxes are created). The current tax system allows people to legally keep their money offshore to avoid some taxation.

It should also be stated that this isn't entirely bad that rich people are doing this. Money that rich people accumulate in offshore accounts (and even in onshore accounts) is used to provide funds for other purposes: loans by banks, investments in companies and stocks, buying government and business bonds, etc.

...and peace be on you.

...if that is not already assumed.
Rate this post positively Quick reply to this message
 
Old 09-12-2013, 01:31 AM
 
125 posts, read 150,964 times
Reputation: 97
Debt and deficits are good things. It is Republican nonsense that creates the idea that things like an increasing debt load is not good for the economy. I just gave an economics lecture about this very topic at one of the restaurants I own. The waiting line to hear me lecture was lined up out into the parking lot.
Rate this post positively Quick reply to this message
 
Old 09-12-2013, 07:13 AM
 
9,856 posts, read 14,067,527 times
Reputation: 5460
Quote:
Originally Posted by PromisedPeace View Post
Peace be on you. Can something be done to finish US deficit (and of others too) if this money comes back?


Source:Super Rich Hide $21 Trillion Offshore, Study Says - Forbes
Lowering capital gains and corporate tax rates would go a long way to do this. Many wealthy people do not reincorporate money into the US because of how high our taxes are. Why do you think Ireland is such a haven for businesses (10% corporate tax rate) vs the US (35%)?

Quote:
Originally Posted by cedartoday View Post
Debt and deficits are good things. It is Republican nonsense that creates the idea that things like an increasing debt load is not good for the economy. I just gave an economics lecture about this very topic at one of the restaurants I own. The waiting line to hear me lecture was lined up out into the parking lot.
Debt can be a good thing. Having a federal reserve that is levered by more than 50:1 (compared to bear stearns only being around 30:1 at its collapse) is a bad thing. Having debt isn't a bad thing. Having federal debt that we allow to increase at an exponential rate disproportionate to GDP is absolutely a bad thing. I sincerely hope you are not giving economics lectures if you actually believe what you just wrote.

Rate this post positively Quick reply to this message
 
Old 09-12-2013, 10:36 AM
 
Location: Long Island, NY
19,776 posts, read 12,449,956 times
Reputation: 5645
Quote:
Originally Posted by hnsq View Post
Lowering capital gains and corporate tax rates would go a long way to do this. Many wealthy people do not reincorporate money into the US because of how high our taxes are. Why do you think Ireland is such a haven for businesses (10% corporate tax rate) vs the US (35%)?
First, that 35% is that statutory rate, which no company really pays. After deductions and write-offs, U.S. corporations are paying the lowest tax rates in half a century.

Second, corporations are sitting on trillions in cash. What makes anyone think that lowering their taxes, which increases the amount of cash, is going to provide an incentive to hire more workers?

Third, capital gains income is mainly income that goes to the more wealthy. New data shows that the already low capital gains rate is already concentrating income at the top -- more than at any other time in history. Lowering capital gains will just increase that concentration of income at the top.

This just came out yesterday:

Quote:
The top 10 percent of earners took more than half of the country’s total income in 2012, the highest level recorded since the government began collecting the relevant data a century ago...

But that's only part of the picture. The top 0.1% captured half of the gains of the top 10% group and the top 0.01% took a quarter of the top 10% gains. The group 5% to 10% took nearly none of those gains.



What this means is that a very small elite of the super-rich are capturing a greater and greater portion of national income -- and then we have people like the OP arguing that we should give this group even more tax-breaks.
Rate this post positively Quick reply to this message
 
Old 09-12-2013, 10:42 AM
 
Location: Long Island, NY
19,776 posts, read 12,449,956 times
Reputation: 5645
Quote:
Originally Posted by hnsq View Post
Lowering capital gains and corporate tax rates would go a long way to do this. Many wealthy people do not reincorporate money into the US because of how high our taxes are. Why do you think Ireland is such a haven for businesses (10% corporate tax rate) vs the US (35%)?
First, that 35% is that statutory rate, which no company really pays. After deductions and write-offs, U.S. corporations are paying the lowest tax rates in half a century.

Second, corporations are sitting on trillions in cash. What makes anyone think that lowering their taxes, which increases the amount of cash, is going to provide an incentive to hire more workers?

Third, capital gains income is mainly income that goes to the more wealthy. New data shows that the already low capital gains rate is already concentrating income at the top -- more than at any other time in history. Lowering capital gains will just increase that concentration of income at the top.

This just came out yesterday:

Quote:
The top 10 percent of earners took more than half of the country’s total income in 2012, the highest level recorded since the government began collecting the relevant data a century ago...

But that's only part of the picture. The top 0.1% captured half of the gains of the top 10% group and the top 0.01% took a quarter of the top 10% gains. The group 5% to 10% took nearly none of those gains.



What this means is that a very small elite of the super-rich are capturing a greater and greater portion of national income -- and then we have people like hnsq arguing that we should give this group even more tax-breaks, which will concentrate their income even more.
Rate this post positively Quick reply to this message
 
Old 09-12-2013, 11:02 AM
 
9,856 posts, read 14,067,527 times
Reputation: 5460
Quote:
Originally Posted by MTAtech View Post
First, that 35% is that statutory rate, which no company really pays. After deductions and write-offs, U.S. corporations are paying the lowest tax rates in half a century.

Second, corporations are sitting on trillions in cash. What makes anyone think that lowering their taxes, which increases the amount of cash, is going to provide an incentive to hire more workers?

Third, capital gains income is mainly income that goes to the more wealthy. New data shows that the already low capital gains rate is already concentrating income at the top -- more than at any other time in history. Lowering capital gains will just increase that concentration of income at the top.

This just came out yesterday:


But that's only part of the picture. The top 0.1% captured half of the gains of the top 10% group and the top 0.01% took a quarter of the top 10% gains. The group 5% to 10% took nearly none of those gains.

What this means is that a very small elite of the super-rich are capturing a greater and greater portion of national income -- and then we have people like the OP arguing that we should give this group even more tax-breaks.
Very little of what you just posted is true. Corporations are sitting on trillions of dollars in cash because of uncertainty pertaining to fiscal regulation and monetary policy at a central banking level. Creating more of an incentive to invest in the united states dramatically helps to offset that problem. Additionally, the united states has one of the highest effective tax rates in the world, so your arrangement against that is untrue. Capital gains does help the wealthy in this country, but only because the middle class is somewhat ignorant about investing. The amount the middle class as spent on entertainment over the last 50 years has increased sixfold whereas savings has not. The middle class absolutely could capitalize on rising markets, they just do not do so in this country.

Low capital gains taxes creates dramatically more investment in new companies, which is a very essential part of any organic economic growth. As usual, you seem to only look at the surface (the dollar the initial 1% investor makes) rather than the causal effects down the line.

Rate this post positively Quick reply to this message
 
Old 09-12-2013, 11:32 AM
 
Location: Long Island, NY
19,776 posts, read 12,449,956 times
Reputation: 5645
Quote:
Originally Posted by hnsq View Post
Very little of what you just posted is true. Corporations are sitting on trillions of dollars in cash because of uncertainty pertaining to fiscal regulation and monetary policy at a central banking level.
...
Additionally, the united states has one of the highest effective tax rates in the world, so your arrangement against that is untrue.
...
Larry Mishel did a thorough debunking of this meme almost two years ago. And sure enough, the index of uncertainty that everyone was pointing to has plunged, with no visible signs that corporations are spending more.

Companies invest and spend when they need either more employees or need to add or replace plant and equipment. If a company is doing fine with the capital they already have, they aren't going to spend more. If you lower their taxes, history has shown that they will pocket the savings and not even say 'thank you.'

The U.S. has among the lowest EFFECTIVE tax rates:

Rate this post positively Quick reply to this message
 
Old 09-13-2013, 04:22 PM
 
Location: 3rd Rock fts
749 posts, read 1,005,853 times
Reputation: 304
Default It's called Moral Hazard!

This is hostage situation 101! The agreed-to-rules were to pay taxes. It hurts the USGovt/Taxpayer when our money is accumulating on someone else's balance sheet. Especially when this deferred capital is being used as an EXPLOITATION tool!

This is the Banksters/Big Businesses way of saying, "You want growth/JOBS for your citizenry?—then let the taxes slide." Didn't work out too well in 2004, but I'm sure this time will be different.
Rate this post positively Quick reply to this message
 
Old 09-16-2013, 08:45 AM
 
9,856 posts, read 14,067,527 times
Reputation: 5460
Quote:
Originally Posted by MTAtech View Post
Larry Mishel did a thorough debunking of this meme almost two years ago. And sure enough, the index of uncertainty that everyone was pointing to has plunged, with no visible signs that corporations are spending more.

Companies invest and spend when they need either more employees or need to add or replace plant and equipment. If a company is doing fine with the capital they already have, they aren't going to spend more. If you lower their taxes, history has shown that they will pocket the savings and not even say 'thank you.'

The U.S. has among the lowest EFFECTIVE tax rates:
Again, you are grabbing images off of Google that are completely untrue. That graph is looking at international based companies incorporated in the US, looking at net tax rates of all global subsidiaries. Look at the effective tax rate of the profits taken in this country and we have one of the highest marginal corporate tax rates. You seem to have a habit of doing a google search and posting the first image you find on a topic, which makes it hard to take you seriously.
Rate this post positively Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:
Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top