Corporate Tax Rate

[iliveonramen]

Interesting article on finding for corporate tax rates.
America's corporate tax obscenity - Taxes - Salon.com

As the authors acidly note, “Most Americans can rightfully complain, ‘I pay more federal income taxes than General Electric, Boeing, DuPont, Wells Fargo, Verizon, etc., etc., all put together.’ That’s an unacceptable situation.”

The authors looked at the tax filings from 2008-2010 of 280 of the nation’s biggest, most successful corporations. These companies reported $1.4 trillion worth of profit during a period when most Americans were struggling to stay afloat. The authors discovered that the average effective tax rate — what the companies really paid after government subsidies, tax breaks and various tax dodges were taken into account — was only 18.5 percent, less than half the statutory rate. Fully a quarter of the 280 companies paid under 10 percent.

The overall trend line is pointed in exactly the wrong direction. If you break out just the years 2009-2010, the effective tax rate was 17.3 percent. “In 2008, 22 companies paid no federal income tax, and got $3.3 billion in tax rebates. In 2010, 37 companies paid no income tax, and got $7.8 billion in rebates.” When measured as a percentage of total GDP, over the last three fiscal years, “total corporate income tax payments fell to only 1.16 percent of the GDP … a new sustained record low since World War II.

Unfortunately, corporate tax legislation now being promoted by many in Congress seems stuck on the idea that as a group, corporations are now either paying the perfect amount in federal income taxes or are paying too much. Many members of the tax writing committees in Congress seem intent on making changes that would actually make it easier (and more lucrative) for companies to shift taxable profits, and potentially jobs, overseas. Meanwhile, GOP candidates for president are all promoting huge cuts in the corporate tax or, in several cases, even elimination of the corporate income tax entirely.

 

[Spartacus FPV]

Taxing corporations doesn't work, they just pass the increase in costs down to the consumers of their goods/services. All corporate taxes do is inefficiently generate revenue by increasing prices.

 

[Samhain]

Corporations, businesses, etc should pay 0% tax on profits.

Taxes should be applied to income and benefits.

 

[iliveonramen]

Corporations, businesses, etc should pay 0% tax on profits.

Taxes should be applied to income and benefits.

Why? They benefit greatly by government expenditures.

 

[iliveonramen]

Taxing corporations doesn't work, they just pass the increase in costs down to the consumers of their goods/services. All corporate taxes do is inefficiently generate revenue by increasing prices.

So those companies that pay 0% in taxes should of dropped prices then right?

 

[jimbo]

"As the authors acidly note, “Most Americans can rightfully complain, ‘I pay more federal income taxes than General Electric, Boeing, DuPont, Wells Fargo, Verizon, etc., etc., all put together."

That statement is only marginally correct. Nearly half Americans pay no income tax at all.

 

[Real Korimyr #9]

Why? They benefit greatly by government expenditures.

The corporation itself is an inanimate imaginary object, and as such does not benefit from anything. The people who own corporations benefit from government expenditures.

 

[winston53660]

The corporation itself is an inanimate imaginary object, and as such does not benefit from anything. The people who own corporations benefit from government expenditures.

Legally corporations are considered people.

 

[Real Korimyr #9]

Legally corporations are considered people.

That doesn't mean that they are people or that treating them like people makes any goddamned sense from a fiscal standpoint. A corporation is a machine in which you pour money into a slot on top, and more money comnes out of a slot on bottom. If you're taxing the money before it goes in, and taxing the money after it comes out, you can't make more money by sticking your hands in the gears; all you're doing is making the in-tax and the out-tax less efficient.

 

[cpwill]

So those companies that pay 0% in taxes should of dropped prices then right?

the companies aren't paying the taxes, ramen. we are. the companies are just serving as an inefficient collection mechanism.

 

[Samhain]

Why? They benefit greatly by government expenditures.

No, the people that work there do though. They pay for their local services directly( utilities ) and indirectly( local income tax, property tax, sales tax ).

 

[conservativeguy]

Garbage in, garbage out. The study cited in the OP is worse than crap....it's an outright lie and propaganda for the econtards. There is similar thread on this study in another forum.

 

[TurtleDude]

Why? They benefit greatly by government expenditures.

society benefits greatly by the existence of corporations. corporations are a net benefit. you libs think they exist to pay for the social goodies you want and fail to understand they can move to areas where the parasite population is lower

 

[iliveonramen]

That doesn't mean that they are people or that treating them like people makes any goddamned sense from a fiscal standpoint. A corporation is a machine in which you pour money into a slot on top, and more money comnes out of a slot on bottom. If you're taxing the money before it goes in, and taxing the money after it comes out, you can't make more money by sticking your hands in the gears; all you're doing is making the in-tax and the out-tax less efficient.

So when it benefits them corporations are people
When it benefits them corporations are not people

 

[iliveonramen]

society benefits greatly by the existence of corporations. corporations are a net benefit. you libs think they exist to pay for the social goodies you want and fail to understand they can move to areas where the parasite population is lower

And corporations benefit due to society. A limited liability corporation is a construct of society. The provide services for a profit using the infrastructure in this country, protected by the law system in this country, and benefit from yes...regulation in this country.

 

[iliveonramen]

Garbage in, garbage out. The study cited in the OP is worse than crap....it's an outright lie and propaganda for the econtards. There is similar thread on this study in another forum.

Yeah, the study just came out. Please point to where it's inccorect. You do understand that you can't just claim something is "crap" because you don't like what it's telling you right? Well...you obviously can but it's not a debate it's sticking your fingers in your ears and just creating your own reality.

 

[Samhain]

And corporations benefit due to society. A limited liability corporation is a construct of society. The provide services for a profit using the infrastructure in this country, protected by the law system in this country, and benefit from yes...regulation in this country.

The people who operate the company provide the service, the business manages the coordination of the effort.

The people who operate the company are protected by the law system, and the people who own the property of the business are protected by the law system.

The regulation attempts to give each company a set of rules.

Still waiting to see why you want to tax profits, when you are already taxing the property, the income, and the benefits of the individuals.

 

[1Perry]

Why? They benefit greatly by government expenditures.

They benefitted greatly with the $800 billion stimulus also. For some reason there have been little in the way of complaints about how much these same corporations were gave from this money.

Corporations are taxed and it's passed on to consumers. Consumers are taxed and it's passed on to corporations, but it had to be done or the economy would have simply collapsed. Or so the accepted story goes.

 

[iliveonramen]

Still waiting to see why you want to tax profits, when you are already taxing the property, the income, and the benefits of the individuals.

I would actually be fine with no corporate tax rate if capital gains was taxed at individual income.

 

[Samhain]

I would actually be fine with no corporate tax rate if capital gains was taxed at individual income.

Do you know why capital gains income is taxed at a lower rate? Because the money you invested was already taxed as income. Capital Gains Taxes directly lower return on investment.

Even the government knows this, which is why long-term capital gains taxes rates are 50% lower than short-term. Lower rates encourage investments.

 

[Real Korimyr #9]

So when it benefits them corporations are people
When it benefits them corporations are not people

You're not paying attention. I'm not talking about what benefits the corporations; nothing benefits the corporations, because they are inanimate objects. I'm talking about what benefits the people, which is collecting the necessary tax revenues while inflicting the least fiscal damage possible; corporate taxes violate this principle because they reduce wages, raise the price of goods and services, and encourage corporations to move their operations overseas. If we need to raise taxes, it makes more sense to raise the taxes on the people who are making money from the corporations-- employees and shareholders-- directly, so that the entire tax burden is distributed according to our regulations, rather than the corporations' accounting practices.

 

[iliveonramen]

You're not paying attention. I'm not talking about what benefits the corporations; nothing benefits the corporations, because they are inanimate objects. I'm talking about what benefits the people, which is collecting the necessary tax revenues while inflicting the least fiscal damage possible; corporate taxes violate this principle because they reduce wages, raise the price of goods and services, and encourage corporations to move their operations overseas. If we need to raise taxes, it makes more sense to raise the taxes on the people who are making money from the corporations-- employees and shareholders-- directly, so that the entire tax burden is distributed according to our regulations, rather than the corporations' accounting practices.

I agree with you entirely, I posted earlier I'm fine with a 0% corporate tax rate if it's applied to all companies and capital gains is taxed at regular income tax rates.

 

[iliveonramen]

Do you know why capital gains income is taxed at a lower rate? Because the money you invested was already taxed as income.

Capital gains is a tax only on the gains. There's no double taxation.

Capital Gains Taxes directly lower return on investment.

Of course, just like taxes on my income equals lowers my income.

Even the government knows this, which is why long-term capital gains taxes rates are 50% lower than short-term. Lower rates encourage investments.

Sure, and the lowered capital gains tax since the 80's has obviously benefited the US economy greatly right?

 

[Samhain]

Capital gains is a tax only on the gains. There's no double taxation.

Correct. And the break on the taxable gains is because you are getting a cookie for investing your money into the economy as opposed to sleeping on it, or swimming in it

Sure, and the lowered capital gains tax since the 80's has obviously benefited the US economy greatly right?

Yes. The economy has more than doubled in size.

 

[KevinKohler]

It's a tangled, convoluted mess, isn't it, folks? I'll say this till I die...get rid of the legal term "corporation".

Corporations get tax breaks for numerous reasons, but the main one, is because they employ a LOT more people, to do the same basic amount of work, as small businesses do. Seriously, walk into a Bi-Lo/Windixie/Stop and Shop/etc, and count the number of people, then walk into a mom and pop grocery store, count the people, multiply it by 4 (to account for the difference in area, and sales), and it STILL won't even come close. Corporations can AFFORD to have these bloated payrolls because they get tax cuts on them.

Here's a few of my problems...

First, profits SHOULD be taxed, because corporations can use that money in the form of protected "free speech" as if they WERE a person. Sorry, but you want that, you gotta pay taxes for it, like everyone else. So long as AIG can lay unrestricted amounts of money on one campaign or another, those profits should be taxed. Period. Better solution? Get rid of corporate personhood. Or corporate all together...

Second. Due to the protections available to corporations that are NOT available to small business, they have an unfair market advantage. It's the REASON WHY we have such great gaps between incomes in this country. Behind every UBER rich man in this country, you'll find a large corporation of one form or another, and they GOT that way because they were bot held liable for as much crap as a small business is, and their risk was less, in day to day operations. And since they pay less in taxes, etc, they can afford to better wage price battles, to drive their would be competition out of business, or out of the area.

Why? Why have we done this? What reason do we have to allow for ONE business to operate in a totally different fashion, than others? Why should a company all of a sudden be held less liable for...well, ANYTHING, after it's reached a certain size, filed certain forms, etc? Government intervention into the market in this way is what is CREATING these monsters that are at our gates, who's hands are in our pockets, who words are passed on to our elected officials, along with cash to make the deal sweeter. All in the name if reducing unemployment.