Formerly About Advanced Micro Devices Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Road Walker who wrote (372496)	3/6/2008 12:41:55 PM
From: TimF	Read Replies (2) of 1572946

Actually a corporate rate of zero isn't as crazy as it sounds. Corporate taxes may have a larger distorting effect than personal income taxes, and importantly corporations don't really pay taxes people do. Now to the extent that the burden of the taxes winds up falling on the shareholders you might consider that to be almost the same thing, but according to a CBO study about 70% of the burden of corporate taxes effectively falls on employees. cbo.gov gregmankiw.blogspot.com The one problem I see with the study is they don't calculate the amount that the taxes cause rising prices and thus form a burden on consumers. That would decrease labors portion (but also decrease the portion going to the owners of the capital, in other words the stockholders). One problem with an actual zero rate (other than the political issue that it would be painted as a give away to the rich even though employees and consumers effectively pay most of the tax), is that with a rate as low as zero, combined with the rate we have for personal taxes, there might be to much incentive to try to make everything in to a corporate activity. I probably wouldn't actually support a rate of zero. I'm just saying it wouldn't be crazy. I would look to have a lower rate, more like what many of our trading partners now have (the US has one of the highest corporate tax rates in the developed world)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next