Firstly, small businesses that have little or nothing to do with exporting jobs overseas will indeed flock to this idea. We would see a drastic move from C corporations to fully incorporated because it would be a gigantic tax break with having to give up very little. Unless accompanied with discretionary spending cuts, this just adds to the tax burden of the personal income taxpayer and does little or nothing to solve the problem.
Secondly, corporations which deal with direct services or corporations that have little or no overseas market would also flock to this plan as it is a nice tax break. However since these corporations have little or nothing to do with the problem it is just a tax break that (without spending cuts) is just shifted to the personal income taxpayer.
Thirdly, those corporations that do export labor may not see this as an enticement to stop. Each would have to weigh the net profit of “buy America / hire America against whatever they pay in corporate income tax. Many of these companies (primarily due to breaks given by congress since 1986) pay a small percentage of their real profit on federal corporate tax. Small businesses (C corporations) carry a much larger load, both in numbers and amount).
I would love to see corporate income tax reduced. However, I would also like to see personal income tax reduced. I am a little hesitant to favor any change that would lower one to the detriment of raising the other.
Firstly, small businesses that have little or nothing to do with exporting jobs overseas will indeed flock to this idea. We would see a drastic move from C corporations to fully incorporated because it would be a gigantic tax break with having to give up very little. Unless accompanied with discretionary spending cuts, this just adds to the tax burden of the personal income taxpayer and does little or nothing to solve the problem.
Well the tax break for small business will encourage more small business and I will heartily support such tax cuts. I certainly support the idea of eliminating the corporate income tax completely and do believe that busdget cuts are essential. Many such budget cuts will come automatically by means of reducing regulations and increasing employment. Further the impetus to wards a national retail sales tax would also be strong. This is becuase once it is demonstarted that a major increase in economic activity genrates jobs and a lot of them the message starts getting accross. Now I would also argue that elimination of the personal income tax would be a logical step after this plan.
What is the cost of a welfare program when there are no welfare recipients? We are talking of ending regulation and subsides in this plan and stimulating the economy. We have additional revenue from tariffs to partially offset this loss. We have additional personal income to partially offset this loss and we have cost savings.
Secondly, corporations which deal with direct services or corporations that have little or no overseas market would also flock to this plan as it is a nice tax break. However since these corporations have little or nothing to do with the problem it is just a tax break that (without spending cuts) is just shifted to the personal income taxpayer.
I have no problem with this as it is increased economic activity that I am seeking and the increased personal income resulting from that activity will provide revenues to the government that will not place an addition burden on the taxpayer. It costs money to provide welfare and unemployment benefits. The savings in these areas alone would take up much of the loss of revenue.
Thirdly, those corporations that do export labor may not see this as an enticement to stop. Each would have to weigh the net profit of “buy America / hire America against whatever they pay in corporate income tax. Many of these companies (primarily due to breaks given by congress since 1986) pay a small percentage of their real profit on federal corporate tax. Small businesses (C corporations) carry a much larger load, both in numbers and amount).
Clearly each would have to weigh the net benefit of "Buy American / hire American" against what they pay in income taxes. I for one do not have a problem with taht as the administration of stringent regulations is counter productive for encouraging improvements in teh American economy. I am not seeking to destroy big business per se. I am seeking to make it marginally more profitable to invest in the USA than to invest offshore. When corporations have to take the full risk of offshore investment, pay tariffs on the importation of products from that offshore investment and continue to have pay taxes on the profits from those offshore investments then the decision to invest offshore is less an appealing alternative. On top of that the encouragement for start up companies in these zones which I hope will soon include the entire USA means they will be facing competition from start ups and existing small businesses.
Now as to these big companies paying a small percentage of their profits due to tax breaks enacted since 1986 that smaller corporations do not have to pay. This tends to cut the loss of tax revenue. It also makes the competition between large and small corporations more even becuase both will be able to avoid teh corporate incmoe tax not just the beheamoths.
I would love to see corporate income tax reduced. However, I would also like to see personal income tax reduced. I am a little hesitant to favor any change that would lower one to the detriment of raising the other.
Well IMHO showing increased economic activity by eliminating the one and showing increased employment, increased personal income, and giving more voters a stake in reducing the personal income tax will lead to the elimination of both.