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1) cut corporate taxes to be not just competitive but to OUT-COMPETE the rest of the world.
Corporations don't really bear the burden of corporate income taxes; they merely collect and forward the taxes. The corporate income tax is burden is borne by a combination of (a) customers in the form of higher prices, (b) employees in the form of lower total compensation, (c) suppliers in the form of lower orders, and (d) business owners in the form of lower profits.
Yet the corporate income tax is highly inefficient. It would be far more efficient to zero out the corporate income tax altogether, and then raise the required income by taxing people directly -- those customers, employees, and business owners. Make such a tax as progressive as you like.
Then, with corporate income taxes eliminated, you'll see businesses relocating from the rest of the world back to the USA. Many jobs will come.
People like me will pay more in personal income taxes, as I'm among the affluent. (That shrinking middle class some people talk about? Most of the shrink has been because many middle class families have graduated into the upper middle class, which is expanding).
The market cap of the stock market will increase, as corporations can cut the armies of tax attorneys on staff who help them comply with all IRS rules & regulations, and reinvest that money into actually designing/building/selling products.
The IRS can cut the armies of tax lawyers and tax accountants who process & audit corporate income tax returns.
Everyone would be better off -- except corporate tax lawyers and tax accountants, but I'm not very worried about them. They are smart people who will find ways to contribute to GDP -- perhaps in the fast food preparation or hotel housekeeping industries.
Last edited by SportyandMisty; 05-11-2017 at 10:09 AM..
You understand what happened (and is still happening), isn't the why pretty obvious?
Given the numbers of completely worthless attempts to explain things about even recent economic history, a theory that any of it is just obvious to people cannot stand for ten seconds.
Quote:
Originally Posted by rruff
Why didn't they make this money grab sooner?
Lack of opportunity. There were consumerism-based corporate grab-plans in the early 20th century, but WWI, the Depression, WWII, and the Cold War kind of got in the way for a while. It wasn't until the ethos of the country had changed and a backlash against blacks, women, gays, and immigrants had been ginned up that the chance came again.
Quote:
Originally Posted by rruff
What does it mean for democracy when our federal government (regardless of who is in office) is so clearly complicit in supporting the very few over the many and distracting the public with lies?
Psst! It isn't the government. It's the Fake News Media.
That shrinking middle class some people talk about? Most of the shrink has been because many middle class families have graduated into the upper middle class, which is expanding.
The non-hooey report would have noted that many more have "graduated" into the lower-middle and lower classes.
By the way and as you know, taxation is just one rather insignificant factor in business location decision-making. Typically, it might serve a tie-breaker function after all the more serious factors involved in profitability have been taken into account.
Of course, OP was lost in hijacks but here's a novel thought for you, OP.
because in the 50s they HAD to create high living standard to counter the USSR that was booming after WW2. Don't listen to propaganda and those who have no idea. Ask people that actually LIVED there and then. People lives were going better and better with every week. West had to counter balance it somehow.
After they ruined that country, they don't care anymore. There is no higher standard to counter now in the world, so why bother?
The Soviet economy was devastated by WWII. About 25% of capital resources had been destroyed. Industrial and agricultural outputs in 1945 were far short of pre-war levels. To help rebuild, the Soviet government obtained limited credits from Britain and from Sweden, but refused economic assistance proposed by the United States under the Marshall Plan. Instead, the Soviets compelled occupied Eastern Europe to supply machinery and raw materials. These nations were made to pay reparations to the Soviet Union as well. But it was still the Soviet people who bore much of the cost of rebuilding as reconstruction programs focused on heavy industry while neglecting agriculture and consumer goods.
Of course, OP was lost in hijacks but here's a novel thought for you, OP.
because in the 50s they HAD to create high living standard to counter the USSR that was booming after WW2.
I already mentioned that. I doubt it's a coincidence that the rise of the US middle class living standard precisely coincided with the world wide threat of communism.
Sadly, history coincides with the theory that a powerful few oligarchs have pretty much gotten what they've wanted for 200 years. And when AI and robotics get more advanced they will want to dismiss with "useless" people entirely.
Or more realistically go to trade school at start your career at 60-80k+ As a welder
Exactly, or an electrician, carpenter, plumber, long shoremen. Get an apprenticeship in one of those trade unions.
Plus side is those jobs can't be off shored either.
I doubt it's a coincidence that the rise of the US middle class living standard precisely coincided with the world wide threat of communism.
Global capitalism failed in the 1920's and 1930's. Some countries moved to the right as the result and some moved to the left. Except in the spin-cycle minds of political reactionaries, this was as close to a "world wide threat of communism" as we have ever come.
It is of course a fact that the economic fortunes of the US middle class rose and fell with with the status of unions. Furthermore, there are actual economic dots that connect the two. Such do not exist with respect to the WWTOC.
Exactly, or an electrician, carpenter, plumber, long shoremen. Get an apprenticeship in one of those trade unions.
Plus side is those jobs can't be off shored either.
The reason those people are paid well is because unions control & limit the apprenticeships. Telling everyone to do that is ridiculous.
If you do get an apprenticeship, according to my state's licensing requirements, it takes 144-216 classroom hours per year of training and 7000-8000 hours of on-the-job training to become a journeyman. You're acting like this is the oh-so-easy route.
In contrast - a bachelor's degree is typically 120-130 credit hours of coursework. We all know nobody does the recommended 1:1 ratio of hours in class:hours spent studying. Probably 1:0.5 or 0.75 at best... so about 200-250 hours of work over 4 years total.
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