Posted on 09/04/2014 7:04:44 AM PDT by SeekAndFind
The nominal corporate-income-tax rate in the United States is 35 percent, the highest in the developed world. That’s the on-paper rate. The effective corporate-income-tax rate — i.e., the actual rate — is . . . a matter of some dispute, but Martin A. Sullivan, a highly regarded economist specializing in taxation, puts it around 28 percent. Others have estimated the rate to be much lower: A Government Accountability (ha!) Office study put the figure at about 13 percent.
Let’s put it at 0.00 percent.
In reality, the effective corporate tax rate varies substantially from firm to firm and from industry to industry. As Sullivan points out, corporations that operate exclusively within the United States pay an effective tax rate very close to that 35 percent statutory rate, and energy and mining companies generally pay a relatively high rate. On the other hand, multinationals doing most of their business abroad often pay much lower rates, as do many technology and pharmaceutical companies.
For example, in 2013 Chevron, ConocoPhillips, and ExxonMobil all had effective tax rates higher than the U.S. statutory rate, but most of their taxes were owed to foreign governments. Microsoft paid about 19 percent. According to S&P Capital IQ, neither Merck nor General Motors paid any corporate income taxes for the second quarter of this year, even though both brought tons of money. (About 22 and a half tons of money in Merck’s case, if you stacked it up in hundred-dollar bills.) Total federal revenue from corporate income taxes in 2013 was $274 billion, or 9.8 percent of total receipts.
(Excerpt) Read more at nationalreview.com ...
The root of the problem is that there is a double tax on the same income — once on the corporate level, and again at the personal level when dividends are distributed. To the man on the street, this is easier to explain than why we need to reduce the corporate tax level. So maybe we should propose these alternatives: (1) allow corporations to deduct dividends from taxable profits after they are distributed; or (2)allow individuals to exempt dividends after they are distributed.
Corporations simply pass on the tax to consumers by raising prices. The tax also affects how much they pay their employees.
CORPORATIONS ALREADY PAY ZERO TAXES. ALWAYS HAVE, ALWAYS WILL.
Yes, that is true. What corporations actually do is collect taxes - from you. Where do you think the money corporations pay for taxes actually comes from? From you of course.
So when some slick politician says, “vote for me and I'll make those corporate fat cats pay their share!”, what he is actually saying is, “vote for me and I'll have corporations collect even more money from you so I can continue to squander it like the village idiot.” And the re-joiner he should add is, “oh, and by the way, I've been doing this for decades and you are too stupid to figure out where your money is going.”
I think we should eliminate the taxes imposed on manufacturing.
Corporations simply pass on the tax to consumers by raising prices. The tax also affects how much they pay their employees.
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If that were true the giant non profits like hospitals would be the place to work.
ABOLISH THE IRS.
REPEAL THE 16th AMENDMENT.
There has never been a better time to take out the IRS.
THE FAIR TAX WOULD BE THE BIGGEST TRANSFER OF POWER FROM DC BACK TO THE PEOPLE IN THIS COUNTRY’S HISTORY.
The FairTax is replacement, not reform. It replaces federal income taxes including personal, estate, gift, capital gains, alternative minimum, Social Security, Medicare, self-employment, and corporate taxes.
The FairTax brings jobs back to America by allowing companies to operate on our soil tax free rather than paying the current corporate income tax of 35 percent. Under the FairTax, various economists have predicted higher economic growth ranging from 7 to 14 percent over the current system, more jobs, and higher wages.
With the penalty for working harder and producing more removed, Americans are free to keep every dollar they earn, and a new era of economic growth and job creation is unleashed. Hidden taxes are history, Americans are able to save more, and businesses invest more. Capital formation, the real source of job creation and innovation, is facilitated. Gross domestic product (GDP) increases by an estimated 10.5 percent in the first year alone. The FairTax as proposed raises the economy’s capital stock by 42 percent, its labor supply by 4 percent, its output by 12 percent, and its real wage rate by 8 percent.
As U.S. companies and individuals repatriate, on a tax-free basis, income generated overseas, huge amounts of new capital flood into the United States. With such a huge capital supply, real interest rates remain low. Additionally, other international investors will seek to invest here to avoid taxes on income in their own countries, thereby further spurring the growth of our own economy.
Yep....corporations don’t pay taxes...consumers do. Corporations merely write the check to the IRS for you.
There is nothing greedier than government. Governments at all levels have a intense desire to spend money they have done nothing to earn, but rather have extorted at gunpoint. Now if you’re extorting money, it doesn’t require any more effort to extort 35% than it does to extort 1% Since politicians and bureaucrats have an unlimited appetite for spending, the odds of any reduction of the plundering are slim and none.
Nailed it. They just pass the tax on. A simple concept that even a moron could understand. But somehow it is sold as being the morally responsible thing to do. Our government is robbing us blind.
There’s a third, hidden, tax in that consumers are forced to pay higher prices because businesses factor in taxes into their pricing strategies.
While it would be hard to sell a zero tax to the general public because most have the economic IQ of dirt, at least you can point to Chile and show what happens to economic growth and personal income when you cut corporate taxes while also reducing the government’s share of GDP. If politicians had the stones to do away with corporate taxes, economic growth here would explode. There would be so many Pacific Rim countries setting up plants here, it would be like the old Oklahoma stampede.
Great idea that will never happen. The Welfare State beast needs to be fed. Taxes on the “greedy rich” are going up so that they pay their “fair share”. Forget the fact that corporate taxes impact the poor more than the rich through price increases, the idea of evil corporations paying no tax isn’t going to fly with the low information, “screw the rich”, “gimme gimme gimme and make the rich and corporations pay for it” segment of the public.
-— Corporations merely write the check to the IRS for you. -—
Any luck explaining that to anyone? I can’t convince my wife that she pays both halves of SS. Going on 20+ years now. 8-)
Sarah Palin suggested this in her Indianola speech
“So when some slick politician says, “vote for me and I’ll make those corporate fat cats pay their share!”, what he is actually saying is, “vote for me and I’ll have corporations collect even more money from you so I can continue to squander it like the village idiot.””
It astonishes me how many people cannot seem to think these things through.
It’s like when the governor of MA assured the citizens that the state wouldn’t be paying to support the waves
of illegal kids,the federal government would. Huh? Do they think we are all fools.
.
Corporations don’t pay tax. They simply collect taxes from consumers and pass the funds on to the government.
Unfortunately, our liberal infested school system is designed to teach this nonsense to children from the earliest age, thereby insuring they will continue to vote for the biggest tax and spend losers of either party.
They will at least until we are totally broke and the second American Civil War begins. That event will be the ultimate economics lesson.
But it wins votes amongst ignorant Pennsylvanians who are apparently still steeped in 1930’s union organizing rhetoric.
No doubt it’s coming. In my lifetime perhaps? I’m 61 now. Hope I still have the strength to help somehow.
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