Posted on 11/12/2004 6:39:20 AM PST by 1rudeboy
By Christopher Swann in Washington
Published: November 10 2004 13:51 | Last updated: November 10 2004 13:51
The US trade deficit narrowed unexpectedly in September, reflecting a fall in energy imports and a pick up in exports, according to data released on Wednesday.
The trade shortfall fell by $1.9bn to $51.6bn, compared with forecasts of a deficit of about $53.5bn.
The figures pointed to a stronger performance by US exporters. Exports of goods climbed by $900m to $68.9bn, offsetting a $100m fall in service exports to $28.5bn. Sales of semiconductors, computers and food were particularly strong.
HSBC said the improvement in the trade position could lead to an upward revision to economic growth in the third quarter from 3.7 per cent to 4 per cent.
In addition to the rise in exports, the deficit was reduced by a fall in energy imports. Despite a 3.5 per cent rise in the price of energy per unit, the total import bill fell by $500m to $124.5bn due to a 10 per cent decline in volumes. Imports of pharmaceuticals, semi-conductors and computers also fell.
Economists said the figures were encouraging but many expect the deficit to widen again, since US growth continues to outpace the expansion in Japan or the eurozone.
Goldman Sachs dismissed suggestions that the improvement in September was due to the hurricanes in the south-east of the US, pointing out that most ports were unaffected. But in a research note published on Tuesday it said the report was unlikely to signal a turning point in the trade deficit.
The figures did little to help the dollar, which has been edging to new lows against the euro. On Wednesday, the euro hit a record high against the dollar at $1.305 before falling back to around $1.29.
Analysts have become increasingly pessimistic over the outlook for the dollar after the currency failed to rally in response to there-election of President George W. Bush and a dramatic improvement in the employment figures. The strong jobs figures at the end of last week were seen as a mixed blessing for the dollar, increasing confidence in robust growth and higher investment returns but also underlining that the deficit may expand further if US growth accelerates.
Many economists say the dollar will increasingly be dragged down by the bloated US current account deficit, despite interest rate rises by the Federal Reserve.
Import prices for October were also released yesterday showing a 1.5 per cent rise in October. This largely reflected an 11.7 per cent rise in petroleum prices.
What is the overall percentage of the US tax burden that foreign companies pay (excluding tariffs)?
Thanks in advance.
25.622% (Give or take a thousandth of a point).
BS.
Even the percentage of TOTAL corporate taxes is significantly less than that.
Individual income taxes are about 40%. Social insurance taxes are about 40%. Corporate income taxes are less than 10% of the overall federal revenues. Excise and estate taxes are around 5%. Tariffs are only 1%.
http://www.cbo.gov/showdoc.cfm?index=1821&sequence=0
Before you come on here and accuse others of ignorance on the issue, perhaps you should brush up on your facts.
The truth is out there? I heard Mulder won 17 for the Athletics too...too bad he fell apart in the last six weeks.
. . . a tale
Told by an idiot, full of sound and fury,
Signifying nothing.Macbeth, Act V, Scene V.
He's heading for the tall grass. Why do I bother with these people? Oh, yeah . . . it's fun.
An NO ONE has refuted my claim with facts. Only lines from Shakespeare and ad homenin attacks.
So tell us, exactly how much do foreign corporations pay in US income taxes?
Is it $100 billion? $10 billion? $1 billion?
What is the number? You claim to be an expert on the subject, so please enlighten us.
Gosh, you are such a beginner. I doubt that you will comprehend the following, but I'll try to keep it simple. You claimed that foreign corporations do not pay U.S. income tax. You have the burden of proving your claim. I simply have to laugh in your face until you do so. So giddy-up, cowboy. I can prove that your claim is incorrect, but I'd rather let you squirm.
I looked at the CBO page, and didn't see a category there for "foreign corporations". So maybe it's part of "miscellaneous". If so, it's still a very small number.
Nonetheless, it is still my contention that foreign corporations, that make things in foreign countries, using foreign workers (i.e., "overseas manufacturers") pay ZERO federal income tax. I could be wrong, due to some nuiances in the tax edicts, but if it's not zero, it's close to zero. BFD.
Anyway, it really doesn't matter if it's "zero" or "close to zero", except to someone that is arrogrant and obsessed with irrelevant details.
I can prove that your claim is incorrect
So what's the number?
Section 882. Tax on income of foreign corporations connected with United States business(a) Imposition of tax
(1) In general
A foreign corporation engaged in trade or business within the United States during the taxable year shall be taxable as provided in section 11, 55, 59A, or 1201(a) on its taxable income which is effectively connected with the conduct of a trade or business within the United States.
(2) Determination of taxable income
In determining taxable income for purposes of paragraph (1), gross income includes only gross income which is effectively connected with the conduct of a trade or business within the United States.
$1,320,828,000 for tax year 2000.
So they pay $1 billion in taxes on sales of at least $500 billion?
An effective tax rate of a whopping..... 0.2%
It might as well be 0%. It probably costs more to collect it.
You wouldn't happen to have a link to this number, would you?
$500 billion? Hardly. From foreign-owned corporations, the IRS withheld $1.3 billion on about $90 billion in US-sourced income. Mind you, that's only foreign corporations - add in foreign individuals, trusts, partnerships and so forth, and the number change.
Foreign Recipients of U.S. Income, 2000 - scroll down to Table 2 on page 7.
How can this be? I thought foreign corporations pay no income tax! It's not FAIR! We must raise taxes on these evil thieves right away!
Both.
Nope.
LOL! No wonder you're on my "idiots who aren't worth responding to" list.
Physician heal thyself.
Major conclusions of the most recent IRS data (1999) include:HIGHEST-EVER TAX PAYMENTS: The amount of taxes paid by U.S. subsidiaries for this year is the highest ever recorded. Over the previous five-year period, tax payments have grown by 82 percent, increasing from $13.2 billion to $23.9 billion, while net income rose by 57% over the same period.
IMPROVED EARNINGS: In 1999, pretax net income of U.S. subsidiaries increased to $60.2 billion - up 48.3 percent from the previous year.
ASSET GROWTH: Total assets of U.S. subsidiaries grew to nearly $4.8 trillion - a 21.5 percent increase from the previous year.
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