Eliminating the Corporate Income Tax

Discussion in 'Politics, Religion, Social Issues' started by ravenvii, Jun 25, 2012.

  1. ravenvii, Jun 25, 2012
    Last edited: Jun 26, 2012

    ravenvii macrumors 604

    ravenvii

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    #1
  2. citizenzen macrumors 65816

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    #2
    I imagined that the article—that you didn't provide a link to—was stupid.

    Your thoughts?
     
  3. kavika411 macrumors 6502a

    kavika411

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    #3
    Discuss what? Finding articles at work?
     
  4. eric/ Guest

    eric/

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    #4
    Is that necessary?

    :confused:
     
  5. citizenzen macrumors 65816

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    #5

    I saw it as a slightly more creative way to say, "link please."
     
  6. eric/ Guest

    eric/

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    #6
    Ah, it definitely came off as you just saying it was stupid
     
  7. mcrain macrumors 68000

    mcrain

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    #7
    Eliminating the corporate income tax is stupid a bad idea.
     
  8. classicaliberal macrumors regular

    classicaliberal

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    #8
    This article is worth a few minutes of your time to read, I actually agree with the vast majority of it's conclusions...

    1) Exchanging an elimination or reducation in corporate tax rates, for increased capital gains, would be politically viable. Especially with all the recent hysteria surrounding the 'Buffett Rule', 'fairness', '99%', etc.
    2) Unbeknownst to most, corporate taxes are really just consumer taxes. As with all expenses companies incur, they are passed along to the customer at the point of sale. Increasing the corporate tax rate by 5% on a company that makes widgets, will often result in in a 5% or 10% increase in the price of widgets.
    3) Flattening (elimination of corporate taxes is about as flat as you can get) our corporate tax structure really means that government would no longer have the ability to pick winners and losers... to manipulate the marketplace and the citizenry into acting a certain way or buying a certain product. For those who believe in freedom and free choice, this is good... for those who believe in centralized planning, this would be bad.
     
  9. ravenvii thread starter macrumors 604

    ravenvii

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    #9
    It's sad that everyone just looks at the title and dismisses it without even reading the article.

    Oh, and thanks for derailing the thread just because I tried to attach the file to the post, but found out it doesn't work, so had to remove it and put it on Dropbox and link to it instead.
     
  10. eric/ Guest

    eric/

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    #10
    Why?
     
  11. mcrain macrumors 68000

    mcrain

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    #11
    Either corporations are separate entities, or they are not. They exist to provide a level of insulation for shareholders, but in exchange for that, they are treated as separate and distinct. As such, they are subject to taxes like any other separate individual or entity.

    On top of that, the corporate income tax encourages innovation and growth.
     
  12. ravenvii thread starter macrumors 604

    ravenvii

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    #12
    Uh, how?

    As to the rest of your post, it's clear you didn't read the article, because the title is actually a bit misleading.
     
  13. mcrain macrumors 68000

    mcrain

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    #13
    I'm not going to read an article about ending corporate taxation that advocates a patently dumb idea written by someone who clearly doesn't understand the field.

    How does a corporate income tax encourage innovation and growth. Well, corporations are allowed to deduct from their gross income salaries and corporate expenses, including those necessary for innovation and growth. When you have a corporation that can't increase its salaries much more without offending minority shareholders, and that does not wish to declare taxable income, where do you think that money goes?

    If you were CEO of a corporation and you had to choose between giving each shareholder a $3 dividend after paying a corporate level tax versus investing $2.1 million in a new plant that might make the company many millions more (all tax free and deductible!), what do you think you might do?

    Sorry for the snark, but this is so obvious it's silly.
     
  14. eric/ Guest

    eric/

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    #14
    Well I disagree that they should be treated as an individual. IE they shouldn't be able to give contributions to politicians and stuff.

    We have one of the highest corporate tax rates in the world

    ....that never gets payed because it's cheaper to hold the money off shore (see Apple corporation).

    So perhaps lowering it will allow that capital to move back to the US?

    ----------

    That's pretty close minded. It's even worse that you write them off and you know nothing about the author.
     
  15. mcrain macrumors 68000

    mcrain

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    #15
    That's been tried before. The money held offshore is pure profits that haven't been subjected to US taxes. What you are suggesting is that we reward multinational corporations for gaming the system. I call BS.

    Closed minded? I do this for a living. If it were a good idea, I'm sure it has already crossed my desk.
     
  16. eric/ Guest

    eric/

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    #16
    Ok so then we just leave the capital overseas?

    Because it isn't coming back with our corporate tax rate.

    Prove that it's not a good idea. What do you do for a living? Why should we believe what you have to say over somebody else? Have you written any papers or done any research on the topic? If so, where were they published?
     
  17. mcrain macrumors 68000

    mcrain

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    #17
    I think we need to triple the corporate rate and penalize all corporations that hold profits overseas. Give them a 60 day grace period, and watch how quickly the money is repatriated. (edit) When your kid hits the family dog with a stick, you don't give him a candy bar for not doing it again. You grab the stick and beat the crap out the brat and he'll never touch fido again. Then again, you could just ground him, but that's not any fun.

    I'm currently unemployed; living on welfare and going to the ER to get my free anti-psychotic meds.

    :D
     
  18. leekohler macrumors G5

    leekohler

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    #18
    Where are you getting this garbage about corporate tax rates? Economists disagree with you.

    Oh- and your proof that it's not a good idea is there too.

    http://mediamatters.org/research/201205010008

    I'm certainly on board for penalizing companies that hold profits overseas.
     
  19. eric/ Guest

    eric/

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    #19
    Why does it need to be triple?

    hyperbole

    If you're going to tout yourself as some sort of expert, which I currently don't disbelieve per say, than you should provide some proof or refrain from using your "expert opinion".

    ----------

    Others disagree with you:

    http://money.cnn.com/2012/03/27/pf/taxes/corporate-taxes/index.htm

    I'm on board for lowering the corporate tax rate to the levels of countries like Sweden, Switzerland, or even Canada.
     
  20. mcrain macrumors 68000

    mcrain

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    #20
    You're right, we should increase it 10 fold! Great idea!

    The proof is in the puddin'.

    How about we change our enforcement of our own corporate tax rate so that we collect what the rate is supposed to collect?

    Oh, nevermind...
     
  21. eric/ Guest

    eric/

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    #21
    Ok so you don't have an answer, just more hyperbole.

    Again, no proof, nor any evidence that you're an expert.

    Why do that? Why not make it comparable to European countries?

    I'm just going to stop you while you're ahead, blaming Republicans or Democrats for any sort of problem or issue is just lost on me, because I don't subscribe to political ideologies involving political parties. So the whole "republicans aren't interested in that" is just a waste of time blame game.
     
  22. Rodimus Prime macrumors G4

    Rodimus Prime

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    #22
    But then we would have to enforce those extra rules and close loopholes and the would pay more.

    What those mega corps want is a lower rate and leave the loop holes open.
     
  23. eric/ Guest

    eric/

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    #23
    Well I certainly don't blame them. Paying higher taxes decreases their funds, and in turn they have less $$ to compete with other international corporations that have lower tax rates.

    Now I'm not saying that I agree with that, but that's their thinking and I can't really see fault with it.

    The problem here is the corruption of the government.
     
  24. mcrain macrumors 68000

    mcrain

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    #24
    Yes, it is hyperbole, but not a bad idea. In order to coerce a behavior, you can offer a bribe, or you can make a threat. With bribes, you will always have some who choose to hold out for a better deal. With a threat/carrot, if they choose not to do the behavior you request, they suffer the consequence. You end up with far better results.

    Proof? I've been on these boards for a decade. If you want to know what I do, it's pretty easy to figure out. But, considering your views, I'm going to make a judgment call about your research skills and just go ahead and tell you. I'm a tax attorney.
     
  25. eric/ Guest

    eric/

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    #25
    Well, maybe. At some point that kind of action leads to revolutions, or black markets, or worse. Not that I'm saying that will definitely happen or anything, but that it's certainly an option.

    But anyway, what do you propose as a solution, and why? How do you think tripling the corporate tax rate will be better for the country?

    I have 0 interest in scouring the forums to find out what you do. It's not my responsibility. Don't take it personally, but just because you've been on the forum for a decade doesn't mean you get to act arrogantly and when somebody questions you to just reply with hyperbole because they don't know you. THat's the same as me stating something, then telling you to Google search it if you don't believe me.

    And you don't know anything about my research skills. So idk what the point of that sort of comment is.
     

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