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So Biden wants to bring it (corporate tax) back less than halfway to where it was before 2017. There wasn't a huge impact when it went down, so i doubt it will be a noticeable impact when it goes partway back.
The individual tax cuts of 2017 are scheduled to disappear at the end of 2025 anyway. Biden would end it sooner for wealthy people. Cry me a river.
Rising interest rates will have a bigger impact on the economy than the size of Biden's tax hike.
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Quote:
Originally Posted by Jstarling
I have no problem with corporations paying their fair share. Because of loopholes companies like Amazon pays almost no taxes. I also hope that companies that did spectacularly because of the pandemic (Zoom, Amazon etc) are paying full taxes on their windfalls.
Fair share? You will pay the fair share lol. Not one liberal has been able to answer the question. When you raise the corporate tax rate by 7% what will the corporation do? Do you think the corporation is going to take a 7% hit and do nothing? If not then what do they do? Please someone give me an answer!
Someone has to pay for all the spending Joe Biden, Pelosi and Schumer have planned.....
You do understand what Trump did to government spending and the national debt, right?
I agree the spending and debt are out of control, but it's pretty funny that Trump supporters are suddenly wringing their hands that the evil Democrats are going to spend too much.
Well you knew it was coming, tax and spend liberal democrats can't help themselves. Someone has to pay for all the spending Joe Biden, Pelosi and Schumer have planned.....
It depends. Prices are based on the MARKET and what people are willing to pay not just the company's cost structure. But yes, prices will typically be lower because companies compete so if there is lesser tax to pass through then prices will drop.
completely different issue.
The point is "when we raise the corporate income tax, they'll just raise prices because the consumer pays that tax anyway."
Which is true, of course. The "consumer pays" = revenue. Tax the cost of production (COGS, materials w tariffs paid here, etc) or operating costs (requiring higher labor costs for ex; taxes on utilities), and the company has to raise prices to ensure they are still profitable.
But that corporate tax is only paid on profits. So, it's not a 21% tax on revenue. For Wal-Mart for ex, it's 21% of ~7%. Or 35% of 7%. So either 1.5% of revenue or 2.45%.
Did all these corporations magically DROP their prices when the corporate rate went from 35 to 21?
Absolutely dd not. Nor did they give raises to employees. They used stock buybacks to increase shareholder payouts mostly.
If anyone think this is about "lower costs" to consumers then they are the victims of the grift. IOW, either you went all-in on equities when the GOP majority proposed the corporate tax cut, ignoring the debt build, or you are now worried about "higher prices".
The 2018 tax cut was 100% about a wealth transfer to the wealthiest, everyone else gets stuck with the bill, in the form of a huge Federal debt load that will go on and on. That tax cut alone is contributing 1 TRILLION per year to the federal deficit. Which is massively higher than when Trump took office.
Then there is infrastructure. Remember when Trump promised to rebuild America with an infrastructure bill? That never happened. To remain competitive we need a robust physical infrastructure. Shall we just throw that on the tab too? Or let China eat our lunch?
Anyone using the phrase "tax and spend" Democrats is revealing that their best economic chops are childish taunts. They are seemingly unaware that tax cuts do not pay for themselves. The GOP cut taxes, benefitting the wealthiest and then pushed through huge deficit bloating budgets on top of that.
First they cut revenues, then they massively increased spending! Their supporters remained completely clueless and are NOW complaining when someone tries to actually bring some balance back.
But if you all insist that those of us who know what is going on, just keep raking in the dividends and capital gains while everyone else faces drowning in public debt, well I'll just have to deal with it.
Fair share? You will pay the fair share lol. Not one liberal has been able to answer the question. When you raise the corporate tax rate by 7% what will the corporation do? Do you think the corporation is going to take a 7% hit and do nothing? If not then what do they do? Please someone give me an answer!
The rise in taxes will hit somewhere between consumers and corporate profits, depending on elasticity of demand for their product.
A profitable company might indeed absorb some or all of the 7% hit if a competitor doesn't raise prices 7% either.
And back in Nevada, the biggest tax increases in NV history, in the last 20 years, we can owe to 2 Republican Governors!
Yeah and look at how the "businessman" Brownback destroyed the Kansas budget with his "conservative" tax cuts. They were doing great until he decided to "fix" things. Being a great business mind and all.
And it worked. Cutting corporate taxes and regulations set the US economy on fire. Too bad the Biden administration is throwing water on the flame.
By what measure was the economy on fire?
Quote:
"After eight straight years of slow growth and underperformance, America is ready to take off," Senate Majority Leader Mitch McConnell said when the tax cut passed two years ago.
In fact, the economy grew 2.9% last year — exactly the same as in 2015.
The tax cut, along with increased government spending, did give a short-term lift to the economy and businesses temporarily boosted investment. But the rocket fuel burned off quickly. Business investment declined in the last two quarters.
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