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.
You don't get it. Any so-called "tax break" to corporations is a savings to the end consumer. If you can't understand that, you don't understand economics.
Actually, not all tax breaks to corporations end up with savings to the consumer.
I can think of a couple corporations off the top of my head
BOA
General Electric
Honeywell
Exxon Mobil
Fed Ex
Microsoft
Verizon
When a corporation spends money on growing its company, or by increasing production or hiring more employees, those costs are not subject to income tax, it does not become part of their net revenue.
not exactly true. When companies spend money on increasing production they receive a tax deduction, which comes into effect AFTER net taxes are computed. Hiring ore employees and some other expenses are PRE net computations. Your mistake is assuming they are the same, when they arent close
Quote:
Originally Posted by 2sleepy
When taxes are high, corporations are more likely to spend more of their gross revenue to shelter it from taxation.
If they spend more of their gross revenues to shelter it from taxes, this then increases their wealth and lowers the amount of taxes they paid, thus increasing the wealth discrepancy in the nation.. Exactly what I said 40+ pages ago
Quote:
Originally Posted by pghquest
If you raise income taxes on the high earners, then the high earners will receive more wealth as a method of income, which we do not tax.. The higher the tax rate, the more incentive they have to avoid taxes by taking their pay as wealth..
Quote:
Originally Posted by 2sleepy
When taxes are lowered they are more apt to hold on to the cash, they are risk averse so unless they see a very unique opportunity to make a large return they hang on to the cash and that does not stimulate the economy.
Wrong. hoarding cash comes by taking that cash and depositing it into a bank, and in order for a bank to pay their depositors interest, that money must then be loaned back out into the economy and reinvested.
Quote:
Originally Posted by 2sleepy
That is why trickle down doesn't work, never has and never will- companies do not spend more on the margin when their tax burden is lowered.
In order for someone to "hoard" cash, they must convert their wealth into cash by SELLING it.
Quote:
Originally Posted by 2sleepy
Think of it this way, when a working class person wants to minimize their income tax, there really isn't any way they can shelter their income by spending it like a business can,
Only AFTER a company transfers their wealth to their business owners who converts it to income does it become taxed. So high tax rates reduce the incentive to convert this wealth into income, as you JUST SAID ABOVE, because it gets "reinvested", and if they dont covnert the wealth to income, there is LOWER TAX REVENUES to the federal government. Its exactly how "trickle down" works, because when you lower the tax rate the "punishment" to convert wealth to income is minimized and its far more attractive to sell off those assets to generate cash, and that transfer IS TAXED..
Quote:
Originally Posted by 2sleepy
so their only option is to put that money someplace where it won't be taxed, which is usually a 401k. If taxes on individuals are lowered they might put less in the 401k and spend more thus stimulating the economy; when their taxes are higher, they generally feel more of a need to reduce their tax burden and put more of their disposable income in the 401k.
You mean the higher the taxes, the less incentive there is to pay them? Get out.. Who would have thought that was true.. Clearly not liberals, you guys have been arguing for how many pages now that we can just increase them and there wouldnt be any negative consequences. Clearly if a "poor" person will avoid taxes, what in the hell makes you think rich people dont also?
Quote:
Originally Posted by 2sleepy
Spending stimulates the economy, whether it is spending by a corporation or by an individual it always has a positive effect.
yes, spending stimulates and you cant spend if you dont convert wealth into income, and the higher the tax rate, the less incentive there is to make the transfer, a fact you seem to not comprehend.
you create a sham corporation for the purpose of tax evasion you go to prison, I thought you would know that?
Do you even know what you are talking about? There are probably millions of corporations formed yearly for this very reason. That and to limit liabilities..
you create a sham corporation for the purpose of tax evasion you go to prison, I thought you would know that?
Of course I know that. I thought you already knew that many newly incorporated companies are small business owners. And most small businesses fail within the first five years.
Many working class people HAVE a secondary business, in case you didn't know.
e.g. If you sell on ebay regularly, you CAN incorporate.
Yes, I'm sure Bill Gates is so thankful for the governments permission to obtain his wealth..
Really? You actually think like this?
Copyrights, patents, trademarks, labor laws, embargo's, legal contracts.............as well as a pile of other safety nets that have allowed him to build his empire
without the legislative and judicial branches of our government creating these things, Bill wouldn't be a billionaire
You need to just stop posting. You obviously have absolutely no concept of why businessmen get rich in the first world, while warlords get rich in the 3rd word with the free market that you think you desire.
You can still be a conservative while accepting basic economic realities like the role of government making wealth possible for law abiding citizens. Too much government is a bad thing, but you have to have the basics. It's what separates us from the animals. When you can understand this, you can be part of the conversation.
Copyrights, patents, trademarks, labor laws, embargo's, legal contracts.............as well as a pile of other safety nets that have allowed him to build his empire
without the legislative and judicial branches of our government creating these things, Bill wouldn't be a billionaire
You need to just stop posting. You obviously have absolutely no concept of why businessmen get rich in the first world, while warlords get rich in the 3rd word with the free market that you think you desire.
There is a difference between government protecting property rights vs government to thank for you owning property. Until you learn this, you are the one who needs to stop posting.
There is a difference between government protecting property rights vs government to thank for you owning property. Until you learn this, you are the one who needs to stop posting.
Think of it this way, when a working class person wants to minimize their income tax, there really isn't any way they can shelter their income by spending it like a business can, so their only option is to put that money someplace where it won't be taxed,
Quote:
Originally Posted by lilyflower3191981
$49 Online Incorporation.
They (the working class person) can always spend little money to incorporate if they believe it is so easy for a company to shelter their income.
Quote:
Originally Posted by 2sleepy
you create a sham corporation for the purpose of tax evasion you go to prison, I thought you would know that?
Quote:
Originally Posted by lilyflower3191981
Of course I know that.
Except of course its not at all true.
Tax avoidance is legal, tax evasion isnt. If one forms a corporation in order to avoid taxes, its completely legal provided of course they file the tax returns honestly and done lie.
While 2sleepy did use the word "evasion", saying you go to prison, which is true, he's responding to your posting about forming corporations for tax reasons, claiming its illegal for the purpose of reducing tax liabilities, which is completely false. Nothing you indicated encouraged illegal activity, and forming a corporation is completley legal and often times encouraged.
Of course I know that. I thought you already knew that many newly incorporated companies are small business owners. And most small businesses fail within the first five years.
Many working class people HAVE a secondary business, in case you didn't know.
e.g. If you sell on ebay regularly, you CAN incorporate.
Why don't you elaborate on that..tell me exactly how can a wage earner shelter their income from taxes by incorporating and selling on ebay? What kind of corporation? S, C, LLC? is this wage earner going to be able to do this while reporting a profit on their ebay sales, or will they have to cook the books to make it look like they lost money?
You really need to ask the difference between being allowed to keep what you acquired legally vs being able to claim you own something that you dont?
ooh brother..
Lets see if I can dumb this down for you..
You get your weekly allowance from mommy and go out and buy a pack of cookies.. You buying that pack of cookies now give you legal ownership of which government is there to make sure your big bad mean bully of a neighbor doesnt come steal them from you.
That is NOT the same as government taking those cookies off someone and then giving them to you.
Did I dumb it down enough for you?
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 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.
