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Every thinking person I know decries the butchered-up, prostituted US income tax code and has been screaming for reform. There is no sense in having a 35% corporate tax that nobody pays. Too bad we have no leadership on tax reform in the White House, even though the president's own Simpson Bowles Commission AND the gang of six both pointed the way to this centrist path. The ideologue in the White House is just posturing.
i was under the impression that Obama, the Dem leaders, and the Repub leaders had all agreed on some sort of tax reform. Even Boner was on board, but the house Republicans said "No."
How does Germany compete with neighbors who offer much lower rates? Why would companies give up cheap labor over tax rates (and especially those whose effective tax rate is drastically lower)? Would you support a corporate tax rate of 20% with no deductions?
So, you were the loser and your employers were the winners? So it was all good that you weren't paying any taxes?
Germany charges a PREMIUM for the products is produces and does not allow them to be manufactured in sweatshops. I don't think there are any BMW plants in China.
How does Germany compete with neighbors who offer much lower rates?....snip...
?
they dont..that's why now today they are having a braindrain too
Germany adds to eurozone’s woes
August 16, 2011 8:23 am
By Ralph Atkins in Frankfurt
German economic growth slowed to a near standstill in the second quarter of this year, dealing a further, unexpected blow to the crisis-hit eurozone.
The surprisingly-sharp deceleration in activity in Europe’s largest economy hit overall eurozone growth and intensified fears about the global slowdown. It also threatened to complicate the challenge facing the region’s policymakers as they seek to combat its escalating debt crisis.
Germany’s disappointing data followed unexpectedly weak French GDP figures on Friday, showing growth in the eurozone’s second largest country was flat in the second quarter and weakened stock markets across Europe. The euro slid from three-week highs against the dollar.
i was under the impression that Obama, the Dem leaders, and the Repub leaders had all agreed on some sort of tax reform. Even Boner was on board, but the house Republicans said "No."
If you think GE "cheated" on thier taxes...turn them in.
However, do remember the corporations file quarterly.
In fact, they paid a project figure ahead of the quarter.
I never said they cheated on their taxes. What they did was perfectly legal under the exisitng tax code. The problem is a tax code that allows this or any corporation to avoid paying taxes. That tax code was written by politicians who are themselves corrupt (e.g., Charlie Rangel) in cahoots with lobbyists for the same corporations who benefit from the tax scheme. That's why a flat tax or a consumption tax are so attractive: they both minimize the potential for corruption that riddles the current tax code.
I never said they cheated on their taxes. What they did was perfectly legal under the exisitng tax code. The problem is a tax code that allows this or any corporation to avoid paying taxes. That tax code was written by politicians who are themselves corrupt (e.g., Charlie Rangel) in cahoots with lobbyists for the same corporations who benefit from the tax scheme. That's why a flat tax or a consumption tax are so attractive: they both minimize the potential for corruption that riddles the current tax code.
Quote:
The problem is a tax code that allows this or any corporation to avoid paying taxes
you mean to avoid paying taxes multiple times
if a transnational (global..just like the globalist liberals) earns 40 billion dollars then ends up ppaying 10 billion to ANOTHER COUNTRY. are we to tax them again.....???
example: ESSO (exxon-mobil) in 2009 had a profit of 34 billion....They paid $15.1 billion in taxes to foreign countries.
Exxon paid the most taxes last year of any U.S. company, by far — but not a cent went to the IRS for income taxes. That’s because the oil giant does business in some of the mostly highly taxed countries in the world. Want to extract petroleum in Nigeria? Be prepared to fork over up to 85% of your profit in tax payments.
Exxon doled out more than $15 billion in income tax payments to foreign countries last year. U.S. tax codes allow companies to take massive deductions in light of those international charges, which knocked Exxon’s federal income-tax bill down into negative territory.
That said, Uncle Sam gets his money in other ways. Including sales taxes and duties, Exxon recorded $7.7 billion in U.S. tax costs last year, and paid even more overseas.
Its grand total in global taxes for the year? A whopping $78.6 billion. The company’s effective income tax rate was a hefty 47%, its highest in three years.
The reason companies work so hard to do that is right there in the article. Here's the important exerpt;
Quote:
The high corporate tax rate in the U.S. motivates companies to move activities and related income to lower-tax countries, said Irving H. Plotkin, a senior managing director at PricewaterhouseCoopers LLP’s national tax practice in Boston. He delivered a presentation in Washington, D.C. this year titled“Transfer Pricing is Not a Four Letter Word.”
“A company’s obligation to its shareholders is to try to minimize its taxes and all costs, but to do so legally,”Plotkin said in an interview.
If you LOWER the US Corporate tax rate, companies will have no reason to spend so much time, energy & money to declare their earnings in other countries, and we will be able to actually collect MORE tax revenue than we currently do.
If you RAISE the US Corporate tax rate, more companies will declare their income in other countries with lower tax rates, aqnd we will generate even less revenue. At which time people will scream & moan even more about the low taxes paid by corporations, and demand corporate tax rates be increased. Doh!
i was under the impression that Obama, the Dem leaders, and the Repub leaders had all agreed on some sort of tax reform. Even Boner was on board, but the house Republicans said "No."
Obama succeeded in misleading you. He would NOT give up his push for higher marginal tax brackets at the top end, although the bipartisan work by Simpson Bowles and the Gang of Six was all about taking the garbage out of the tax code and lowering rates. Boehner was prepared to kiss off the tea party to get reform done; Obama could not take the bipartisan path. That poser would rather slap corporate jet owners around than get anything done, and it is a shame.
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