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Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth -- Ignore unavailable to you. Want to Upgrade?

To: Skywatcher who wrote (143595)	10/27/2008 9:20:32 PM
From: Hope Praytochange	Read Replies (1) \| Respond to of 173976

nationalrepublicantrust.com

To: Skywatcher who wrote (143595)	10/28/2008 7:47:00 AM
From: tonto	1 Recommendation Respond to of 173976

Really. Can you be specific? I want to tell my accounting firm this... US Corporations pay the SECOND LOWEST TAX RATE IN THE WORLD... they have so many stinkin loopholes that the tax rate you see on paper is MEANINGLESS

To: Skywatcher who wrote (143595)	10/28/2008 11:26:10 AM
From: TimF	Read Replies (1) \| Respond to of 173976

Your post isn't really relevant to mine. I made two points, both of which you didn't respond to. 1 - Highest, lowest, whatever the point is that for consistently profitable corporations, corporate income tax isn't voluntary. 2 - The corporate tax effectively gets paid by shareholders, customers, workers, and suppliers (with overall most of the burden falling on the workers in most cases). -- But I'll address your points anyway, even though you ignored mine. A lot of what gets called loopholes in this area is simply cases of companies not really making profits, but rather spending revenue on the cost of doing business. But there are some actual loopholes or credits or special benefits, that probably should be removed. And while they are removed we should lower the rates, because our rates are among the highest. The fact that we may have more loopholes, doesn't really keep the high rate from being a problem. Many can't take advantage of the loopholes, and even those who can have to structure their business activities around the loopholes, reducing profitability and creating a dead weight loss (higher total cost of the tax than the revenue the government gets from the tax). If we want to keep the revenue from the corporate tax the same, than the smart way to do it would be to simplify (mostly eliminating loopholes), while cutting rates. But it makes sense to reduce or even eliminate the corporate income tax at some point since effectively it mainly falls on workers (and to the extent it doesn't it falls on other people, you can't avoid taxing people by taxing corporations, people pay the cost). --- For information about the burdens of the corporate income tax see nytimes.com cbo.gov (PDF) gregmankiw.blogspot.com (except of key point from PDF)