I never said there was. Go back and read my post. 10% is what Rob came up with. FICA savings plus compliance. How much would Microsoft save if it didn't have to buy low income tax credits to offset its tax liability? It could put that money into short term cd's and one day get it back. The tax credits may or may not return. Also, how much would MSFT save if it could get rid of its tax department?
Dear groanup,
"I never said there was."
Yeah, I know. I just was making the point that I absolutely don't accept that as a premise."
"Go back and read my post. 10% is what Rob came up with."
He was being generous.
"FICA savings plus compliance."
Right, but we'd all originally agreed, just ask pigdog, that workers would get back 100% of their taxes, including the employer's side of FICA and Medicare, because we all know that the money really comes out of the workers, anyway.
And that 7.65% was nearly all of the 8.8% that he could possibly get to, which he then rounded up, generously, to 10%.
"How much would Microsoft save if it didn't have to buy low income tax credits to offset its tax liability?"
I'm unaware that Microsoft "buys low income tax credits." Please document this.
However, I AM aware of "low income tax credits" as they apply to rehabilitation of housing, and renting it to poor folks. If you want to discuss this, I'm happy to, as I'm seriously thinking about delving into this part of the real estate business if I sell my current business.
When I look at Microsoft's financials, I see they actually do pay a ton of corporate income taxes. They are the exception to the rule. They pay fully 33% of their pre-tax profits in federal and state income taxes. If they're buying "low income tax credits," they aren't using 'em right.
"Also, how much would MSFT save if it could get rid of its tax department?"
Probably millions and millions of dollars. But much less than 1% of its revenues.
Microsoft's accounting is pretty straightforward compared to other companies of similar size. So are their taxes. At least compared to other companies with $36 billion in revenues.
sitetest