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The top corporate Statutory tax rate has been 35% for the past 21years. The average effective tax rate paid by corporations is 12.6% which is competitive with most developed countries. Those countries rely on substantial VAT tax for income.
Cutting taxes without cutting expenses is one of the reasons why the Federal debt is what it is. 2/3 of federal government spending is considered untouchable, senior, disabled, veterans and Defence.
The top corporate Statutory tax rate has been 35% for the past 21years. The average effective tax rate paid by corporations is 12.6% which is competitive with most developed countries. Those countries rely on substantial VAT tax for income.
Cutting taxes without cutting expenses is one of the reasons why the Federal debt is what it is. 2/3 of federal government spending is considered untouchable, senior, disabled, veterans and Defence.
You forgot the welfare programs. That's over $1 trillion right there.
Them high paying jobs have been migrating off shore since the 80's that I know about.
Thank you Reagan, Bush 41, Clinton, Bush 43, and now Obama.
I dont care about ideology. I DO care about truth and especially truth in history.
Jobs began off shoring in the 60's. Steel was one of the first industries to be hit hard. Why would buyers of steel pay a substantial premium to sustain US middle class wages when steel could be acquired elsewhere for a fraction of the cost?
Fast forward to the current enviornment. 60% of GE's income is derived offshore. Why would GE not put an increasing percentage of their workforce where their products are sold/ serviced?
Walmart replaced IBM as the largest US employer in the 80's. Then McDonalds pushed IBM to #3. This was followed by YUM Brands (Taco Bell) pushed IBM to#4.
15% of US factory jobs were eliminated between 2000-2010 because of technology. No reason to think another 15% won't be eliminated 2010-2020.
Jobs began off shoring in the 60's. Steel was one of the first industries to be hit hard. Why would buyers of steel pay a substantial premium to sustain US middle class wages when steel could be acquired elsewhere for a fraction of the cost?
Fast forward to the current enviornment. 60% of GE's income is derived offshore. Why would GE not put an increasing percentage of their workforce where their products are sold/ serviced?
Walmart replaced IBM as the largest US employer in the 80's. Then McDonalds pushed IBM to #3. This was followed by YUM Brands (Taco Bell) pushed IBM to#4.
15% of US factory jobs were eliminated between 2000-2010 because of technology. No reason to think another 15% won't be eliminated 2010-2020.
These dynamics are world wide.
The steel that comes into the USA now is junk.
When it was need in the USA only high quality strap was melted down.......now, everything is in the mix.
We turned from a producer nation to a consumer nation full of low paying service level jobs.
The "people" can't keep the government coffers full anymore because they aren't earning big bucks anymore.
And more are falling far enough behind that they need government to subsidize their lifestyles.
So who is left with the money to keep the game going ?
Corporate tax should be higher than it is. Corporations are not good for the US economy. Corporations are government subsidized and approved economic powerhouses that originally were not supposed to be as powerful as they were. They lasted 30 years and were the only business type that was subject to harsh regulations. After the Civil War bankrupted the US, corporate lobbyists managed to get corporations more rights.
Capitalism appears to be failing us because of how the country views the corporation. But all economic problems we have are not related to capitalism as we are not a capitalism. Some would have you think we're socialist, but that's when the government controls the economy and that's not really what's happening. In fact, these corporation are what's controlling the government; and economy controlled government. That's not socialism, that's corporatism, and as far as I'm concerned it's far worse. At least socialism is straightforward; this system tries to convince you we have we free market when we don't. Capitalism is a completely effective system that loses its efficiency when we decide corporations deserve the same rights as people without the responsibility.
And just do further this point, we keep talking about lowering corporate tax. Politicians bring it up regularly. What they forget to point out is that corporate tax is lowering at a fairly regular rate. Why do politicians want us to support corporations so much? What possibly benefit could that bring to them? It couldn't be that corporate lobbyists are the main reason they are in office, could it?
The top corporate Statutory tax rate has been 35% for the past 21years. The average effective tax rate paid by corporations is 12.6% which is competitive with most developed countries. Those countries rely on substantial VAT tax for income.
Cutting taxes without cutting expenses is one of the reasons why the Federal debt is what it is. 2/3 of federal government spending is considered untouchable, senior, disabled, veterans and Defence.
The Federal budget can't be trimmed much. The deficit explosion under Bush was a revenue problem caused by tax cuts.
Quote:
Originally Posted by HappyTexan
You forgot the welfare programs. That's over $1 trillion right there.
False. Welfare spending is not $1 trillion unless you include medicaid / medicare (which the post you are replying to already alluded to).
You forgot the welfare programs. That's over $1 trillion right there.
That was intentional.
The Safety Net is 12 % of federal spending, $398 Billion in 2013. ( SS is 24% and growing, Medicare/ Medicaid is 22% and Defense is 19%). This includes some sacred cows like SSI, low income housing and SNAP for seniors and disabled that is not likely to be cut no matter who sits the oval or holds the majority. Then there is the value of EITC, UI, low income housing and SNAP, CHIP and other federal programs for the able bodied and children and all associated expenses including the cost of subsidizing employment for TANF recipients.
When the largest US employer, Walmart, felt it necessary to use their annual report to communicate the impact of reduced federal benefits on their bottom line says something about corporate profit dependence on Federal Programs.
After much noise about Walgreens becoming a Swiss corporation to avoid paying taxes, they decided to forgetaboutit. Guess the Walgreens board realized what percentage of their income was from Medicare/ Medicaid.
Cut/ eliminate SNAP and PepsiCo , Kraft Foods and many others are impacted and heads will roll.
Right now is the culmination of 30 + years of phony prosperity due to unfunded tax cuts and increased government spending. It does not matter who sat the oval or held the majority.
I told you I support $200/hour minimum wage!!! Let's raise it to $200 and everybody would live fabulously.
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