Yep - you “don’t care”. This is you:
{sticking fingers in ears} I can’t hear you, I can’t hear you ...
Pull your head out of your butt and wipe the poo from your eyes.
Corporations have many opportunities to take deductions, of which business expenses such as unemployment comp and state and local taxes are just a few examples. Let’s see - pay higher salaries or bonuses as an expense, or pay federal taxes... Hmmm, what would a corporation do ? Most corporations pay few federal taxes because they pump up their expenses with all kinds of legal deductions that they have spent a ton of money lobbying for - which is also a business deduction, by the way.
Why do you think the AMT is becoming a problem for individuals - because it’s exposing the high tax rates of states and local jurisdictions. Same for corporations in terms of paying state and local taxes. It’s relevant.
So, to continue, if the drug dealer buys an item from a corporation that pays no federal taxes, he is still paying nothing.
Dude, look under the surface if you have an IQ above room temperature.
http://www.cbpp.org/10-16-03tax.htm
My corporation pays tons of taxes -- just not federal corporate income tax. I pay that personally under the subshapter-S rules. I get no deductions of any kind (corporate income makes my "personal" income far too high)
However, I make a damned good living doing what I do, and employ around 700 other people who also make a damned good living. About the last thing I worry about is the IRS. The vast majority of the "corporate income" beyond profit sharing (which is generous) gets pumped back into the business to continue growing it.
Yeah, you pretty much got it. I don't care that "Corporate tax rates are 39% - federal - for any corporation earning over $75,000", and, quite frankly, I wonder why you do. I'm interested in the AVERAGE corporate tax rate. Why aren't you?
"So, to continue, if the drug dealer buys an item from a corporation that pays no federal taxes, he is still paying nothing."
The item the drug dealer buys from a corporation contains the cost of the labor to manufacture it. The cost of labor includes 7% FICA (employer) plus 9% FICA/Medicare (employee) plus employee withholding (15-20%), all of which flows directly from the employer to the federal government.
The drug dealer is paying these federal taxes today -- they're embedded in the price of the item today.
The Fair Tax would simply make them visible.
"Dude, look under the surface if you have an IQ above room temperature."
Dude, you're embarrassing yourself again. According to the link YOU provided, "During the 1990s, corporations as a group paid an average of 25.3 percent of their profits in federal corporate income taxes, according to new Congressional Research Service estimates."
Let's see. I used 25%. Gosh, I was off by .3%.