Silicon Investor (SI) -- The First Internet Community

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 : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Whist who wrote (190945)	10/11/2001 1:52:29 PM
From: TimF	Read Replies (1) \| Respond to of 769667

Flapjack, in most cases CEO pay, while high, is not so high as to represent a significant part of the cost people pay for products. If corporate taxes were reduced or eliminated then prices would go down in competitive industries. Where you have uncompetitive situations it is the lack of competition not the CEO pay that is the problem. CEO pay is in my opinion more of a consideration for shareholders then for customers, but shareholders would also do well by lower corporate tax rates. Also, if we taxed corporations less, we'd have to tax America's middle class more. Or perhaps government could stop its run away spending increases... And in the long run the lower corporate taxes would encourage more investment and growth and the larger economy would make up for the lower rates. Tim

To: Mr. Whist who wrote (190945)	10/11/2001 5:55:46 PM
From: Thehammer	Read Replies (1) \| Respond to of 769667

Flap, I think you still miss the point. Some of the money may go to additional benefits for employees, some may go to reduce product costs to clients, some may go to shareholders in the form of dividends or increased profits and most importantly some may go to expand the business which in turn creates new jobs. It is not a zero sum game and it is not just about employee compensation. Hammer

To: Mr. Whist who wrote (190945)	10/11/2001 10:20:08 PM
From: Don Lloyd	Read Replies (3) \| Respond to of 769667

flapjack - ...Re: "Corporations should not pay tax, they are the engines of economic growth." Sounds good in theory; falls flat in real life. Let's look at a few numbers:... Corporations, being fictitious entities, do not, and cannot, pay taxes. Only people can pay taxes, and the taxes that corporations appear to pay are really incident on shareholders, employees and customers, with almost everyone affected in all three of these categories simultaneously. Corporate taxes are merely another solution to the political problem of how to hide taxes so that people do not realize just how much they are being taxed. As with all taxes, there are several economic distortions produced which contribute to a reduced standard of living. Not only do the hidden corporate taxes result in multiple taxation (effective taxes on the after-tax remainder of other taxes), but corporate taxes create the perverse disincentive of differentially rewarding failing companies at the expense of profitable ones. Regards, Don