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Trump wants 15% corporate tax rate even if it means massive debt
This 15% would apply to S-Corp as well, so basically individuals who have S-Corps and are taxed through individual taxes would have their taxes cut to half, which could amount to tens of thousands in savings per year. If you earn $150K, your savings would be around $22K a year. Somehow I think people would not want to be permanent employees anymore, but rather independent contractors, and that would lead to massive reduction in tax revenue.
Lowering the corporate tax rate is a great way to keep companies here, and bring some back to the US, where they can be taxed, and hire Americans.
Seems very logical.
"Logical" at the highest level of ideology sure.
Reality isn't that way. Lower corporate taxes = higher profit margins = larger returns to shareholders.
Who are the shareholders? The richest and those who have been able to save for retirement.
What will make the economy better is if a more progressive tax system is implemented. Meaning the Bill Gates of the world would get taxed at a very high rate like the Pre-Reagan era (60%+). In return, everyone who makes <100K/year would see their federal taxes lowered. And yes this is redistribution of wealth, but if the masses don't have money to spend, how will companies continue to make money and hire people? Seems pretty logical to me.
Its absurd. Trump just announced massive new spending on the military industrial complex to the tune of $55 billion. Now people claim they support his huge tax cuts and think it should be paid for by cutting the military! You are right, it is truly magic land.
Its the disabled and other vulnerable groups who will pay for this. They are not members of the ruling donor class. The richest and most powerful donors who are pushing this "tax reform" agenda dont fund the concerns of the disabled. What a morally bankrupt position to support this agenda. Especially if a person is a member of the working class!
Originally Posted by NLVgal
Which is fine, but we must close all the loopholes so they actually pay that amount.
Quote:
Originally Posted by Donna-501
Not going to happen.
Even Reagan closed the 'loop-holes'. If they cut taxes to 15%, while keeping the loop holes, we'd have a very high percentage of corporations who don't pay any taxes.
Obama wanted to cut taxes and loopholes, and the GOP rejected the idea, so I think they are talking about tax-cuts and keeping the loopholes. This is fiscal irresponsibility.
They would have to make massive cuts to government spending to keep the country from going broke, but that is not on the table. On the contrary a trillion dollar 'stimulus' and hikes in military spending are on the table. Less revenue, more spending.
Try taking a look at actual EFFECTIVE tax rates. And given where our debt is, we need to pay it down before we hit another recession. I've criticized Obama for not doing that near the end of his administration.
Massive numbers of people who voted Trump also have criticized the debt. Im interested how they square up the hypocrisy.
You've only commented a few times on it, I could call you out for some of it, but its pretty mild. But a TON of people went all in bonzos about the debt. and yet....here we are with their guys in charge doing EXACTLY what Democrats said they would here on this board.
They'll let you know after four years. Screaming fire when their just a match is not exactly a good forecast method. Remember the election?
Even Reagan closed the 'loop-holes'. If they cut taxes to 15%, while keeping the loop holes, we'd have a very high percentage of corporations who don't pay any taxes.
Obama wanted to cut taxes and loopholes, and the GOP rejected the idea, so I think they are talking about tax-cuts and keeping the loopholes. This is fiscal irresponsibility.
They would have to make massive cuts to government spending to keep the country from going broke, but that is not on the table. On the contrary a trillion dollar 'stimulus' and hikes in military spending are on the table. Less revenue, more spending.
If they close the loop holes 15% wouldn't be bad, but I don't see that happening under Trump.
Myth: Any new corporate taxes will just get passed on to consumers
Often, if taxes are raised (or other costs go up) for businesses, the owners say that they will just raise prices and pass the costs on to their customers.
This claim is often accepted as fact because many people don't know about "elasticity of demand".
Elasticity of demand is perhaps the most important basic idea in economics that many people don't know.
It's a little technical, so here's a short version and a long version.
It is passed down just like the nuts used in fixing a lock, the hammer, the nails, etc. It's a hidden cost that isn't really quantifiable. That is the main thing.
If they close the loop holes 15% wouldn't be bad, but I don't see that happening under Trump.
Trump will sign anything they put on his desk, because then he can say he got something done. It's just a game for him. Congress will write the bill, and since they refused to remove the loop holes with Obama, they will refuse it this time too.
This is a massive hand-out, and while I will benefit personally (I am a corporation), I don't think the country can afford it.
This is a massive hand-out, and while I will benefit personally (I am a corporation), I don't think the country can afford it.
We can't.
We're at the point where the economy has recovered and we should be paying down against what we already borrowed. Not digging a bigger hole by decreasing our revenue while not shrinking our budget or redirecting the extra cash to reduction of debt.
This tax cut would be offset SOME by increased hiring/spending, but not enough to counteract the billions in revenue we stand to lose.
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