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It's tough to hear about the plight of America's poor corporations, tears swell in my eyes and a lump forms in my throat.
America should reduce taxes on corporations to .5%. We all know that they are just barely getting by.
But of course liberals think corporations in the USA don't pay enough. Watch as more corporations leave the USA to headquarter in Ontario!
How cute. You must still be living under the delusion that US corporations pay the official tax rate. I hear this canard repeated all the time, and I'm really sick of it. Allow me educate you:
US corporations do not get "charged" the nominal stated tax rate. I know this very well given the particulars of my job responsibilities in one such giant multinational corporation. There are many deductions that they can take advantage of, just like you do on your own taxes. Think of it as the difference between the listed price on the TV at Best Buy and the sale price you actually ended up paying.
This is how the US tax code is set up: high nominal rate, but many various deductions that can produce a much lower real rate. Other nations have different tax codes with lower nominal rates and not as many exceptions, but the net results can oftentimes be analogous. Frankly, big US businesses may very well prefer our tax law, because it has provided them with opportunities to cleverly riddle it with holes that they can very nicely exploit - moreso than if they were in a country that has a lower rate with few exceptions.
Bottom line: looking at just nominal tax rates is highly misleading. If you really want to get into it, start looking up info on nominal corporate tax rates, effective non-GAAP tax rates, and GAAP tax rates. When you actually look at the real average tax rates that US businesses pay, you find that they are not a significant outliers from the rest of the world.
Don't think that big businesses like IBM, Microsoft, Google, GM, Raytheon, etc. are so stupid that they would have stayed headquartered here all these years if they were being egregiously gouged on taxes. They've got many excellent lawyers and rich lobbyist friends in high places around Washington ensuring that they are taken care of.
It's tough to hear about the plight of America's poor corporations, tears swell in my eyes and a lump forms in my throat.
America should reduce taxes on corporations to .5%. We all know that they are just barely getting by.
Ummm....I'm guessing you do not own a business of any type. Or else you would never have typed such a ludicrous thing.
First of all, almost all businesses of any substance are corporations. That means your local hot dog stand, coffee shop, bar, or cute little antique store. Chances are they are either an S Corp or an LLC. In short, the average corporation isn't Exxon. It's the guy down the street who is barely making it.
Now, here's a little math for you. If a plumber has a decent year and pays himself roughly $70,000 in salary, you wouldn't begrudge him that, right?
Yet his corporation might make a profit of $100,000. Mind you, that doesn't mean that cash goes into his personal bank account. Instead, it goes to hiring employees, buying new equipment, expanding, or creating a web site. Because that's what intelligent business people do with the profits.
But guess what? With our obscenely high corporate tax rates, the government swoops in and takes 33% of that profit. You know, the profit that was supposed to hire new employees, buy new equipment, and generally build the foundation for growth. Oh, and also save for a rainy day. But he can't save for a rainy day, because the tax policy you like so much prevents him from doing that. It actually punishes business owners for preserving capital for economic slumps.
So the result? That plumber who only has an income of $70,000 is considered to have an actual income of $170,000, whether he benefitted from it or not. So he could possibly face a tax bill almost as high as his take home pay. So he has to empty his company's business account in April to pay the IRS. So during the last week of the year, all over the country, business owners are scrambling to burn through their profit to avoid being sodomized by the Federal Government in 2011.
In short, actually argue about subjects that you're versed with. Kneejerk responses just aren't attractive.
My business was incorporated for a few years. I never paid any taxes on it. It's very easy to "zero out" your business income and owe nothing.
I find it amusing that poor and working-class Republicans are defending large corporations and suggesting that they should pay less in taxes. What a bunch of suckers. I feel a little sorry for them.
You could cut the corporate rate to 0% here and the jobs still won't come back.
We may have the highest rate now but that doesn't mean corporations actually pay it.
With our obscenely high corporate tax rates, the government swoops in and takes 33% of that profit.
The only people who actually think that American businesses are paying an average effective corporate tax rate of 33% must be you and those purposefully misleading guys at the Cato Institute.
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What a bunch of suckers. I feel a little sorry for them.
