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Politics : Mainstream Politics and Economics -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (54851)	10/9/2013 8:45:31 AM
From: Brumar89	Read Replies (1) \| Respond to of 85487

Obama calls Boehner to tell him he won't talk to him. That's nuts. "This morning, a senior White House official this morning said that the president would rather default than to sit down and negotiate." Read more: thehill.com Follow us: @thehill on Twitter \| TheHill on Facebook

To: Road Walker who wrote (54851)	10/9/2013 10:40:20 AM
From: longnshort	Respond to of 85487

looks like that chart includes sub S and LLC corps which pay no taxes so that lowers the 'effective' rate. so your chart is liberal crap, but what we expect from someone who doesn't pay his caddy a living wage or his health insurance, you pay him slave wages

To: Road Walker who wrote (54851)	10/9/2013 5:05:34 PM
From: TimF	Respond to of 85487

I assumed you were talking about corporations. 1 - I mentioned and linked to corporate tax rate information. 2 - A lot of small businesses pass the tax liability on to the owner, so the corporate tax rate doesn't apply. For them the individual tax rate matters. 3 - Even for corporations higher individual taxes on dividends and capital gains has a negative impact on investment, while also channeling it to tax favored areas. As for your chart there is no link or text explanation about what "effective corporate tax rate" means. The legal top marginal rate has been pretty much the same for a long time. Even the "effective" rate in your chart is higher than the rates in much of the rest of the world. But to say "we can't have higher taxes because people won't comply" is like saying "we can't have laws against theft because people won't comply". Laws against theft increase compliance with "do not steal", high tax rates decrease compliance with tax laws. With laws against theft your trying to deter and punish theft. With tax laws your trying to raise revenue. If the higher tax rates decrease revenue (in other words they are past the downward turn on the Laffer curve) then they are 100% negative. Even as they begin to approach the turning point increasing tax rates is still a bad idea. You get more and more suppression and distortion of economic activity for less and less additional revenue. Taxes should almost always and everywhere be well below the short term revenue maximizing rate, and below the lower long term revenue maximizing rate except perhaps in extreme cases like WWII.