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

To: Bill who wrote (455667)	9/9/2003 6:52:21 PM
From: Lizzie Tudor	Read Replies (2) \| Respond to of 769670

Corporate tax rates are 34%. There is no net difference to the federal government. No! That equation won't work! The 100K is added as an aggregate to total corporate income, then taxes are paid on that. This is assuming Company X gets a dollar for dollar match against an operational savings for a salary vs. earnings (almost impossible). It is more accurate to take the $$ received in taxes in case (a), which is taxes received on the US employee 100K salary, vs. case (b) taxes received when company X makes 100K more in earnings. We can't assume the maximum tax rate will be paid on that 100K earnings. Take the average, according to the taxinfo website, around 10% of total tax receipts are paid with corp taxes. In the employee case, it is easier, we know exactly how much he pays because there are fewer "loopholes" and essentially no escaping the 15K to SS. So the 30K tax from the employee side is pretty sure. The goal will be to determine that an additional 100K in earnings to Corporation X equates to 30K more revenue to the US government - no way I say!