Japan cut theirs effective April 1st and there you have it.
http://finance.yahoo.com/news/u-corporate-tax-rate-poised-171800370.html
http://finance.yahoo.com/news/u-corporate-tax-rate-poised-171800370.html
Corporations are not people. And they shouldn't be allowed to donate to either political campaigns, or super-pacs. Their money is the voice of the majority stock holders. Not the majority of the people that they represent. Representative government shouldn't allow the financially advantaged to speak for the entire corporation. And they shouldn't be forced to pay huge tax rates, or allowed to swindle the government by sheltering their income. (Read, claiming profits in offshore non-taxable jurisdictions, and claiming offsetting loses in outrageously taxed countries like the USA.)
Lower the darn rate, and close the loopholes. And stop them from wining and dining our legislative (and other) branches of government. Our high corporate tax rate is simply passed on to the lowest common denominator- the consumer; which only affords the privileged an unfair voice in our political system. Take away that advantage, lower the corporate rate, reduce the incentive for offshore shelters, and give our hard working citizens a fair shake.
Lower the darn rate, and close the loopholes. And stop them from wining and dining our legislative (and other) branches of government. Our high corporate tax rate is simply passed on to the lowest common denominator- the consumer; which only affords the privileged an unfair voice in our political system. Take away that advantage, lower the corporate rate, reduce the incentive for offshore shelters, and give our hard working citizens a fair shake.
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When it comes to corporate taxes, I think abolishing it altogether might be the best thing. Saying "close the loopholes" is one thing, but doing it is a whole other. When it comes to corporations, there is always going to be an incentive to lobby for loopholes and with a lot of money, so I am not sure they would ever get closed unless politicians have some other incentive that heavily outweighs that lobbying. Corporations today also spend A LOT on legal services to find loopholes, etc. and it is arguably wasted money (at least compared to had they spent it on investing in their companies, hiring more people, etc.) that would not be wasted without a corporate tax.
I have many ideas on tax reform and the corporate tax is not the only one that I would abolish. The ones I wouldn't I would probably heavily reform and I would probably add some taxes that we currently don't have if it were up to me.
I have many ideas on tax reform and the corporate tax is not the only one that I would abolish. The ones I wouldn't I would probably heavily reform and I would probably add some taxes that we currently don't have if it were up to me.
Oh, lol. I could go on a while about that, but generally, I would rid of the income tax, capital gains tax, and corporate tax and replace it with some sort of progressive (in terms of dollars) consumption tax (maybe in the form of a value-added tax?). I would also have a more expansive system of Pigovian taxes (taxes on things that have negative externalities- basically to offset the externality) in place. This would include taxes on things like alcohol, tobacco, gasoline, land that is unused for long periods of time, etc. In this process I would try not to double tax things (for example I would not want to tax gasoline and then the pollution created by things that use the gasoline- the tax should be on one end, no need for it on both). I would have no estate tax.
That's the general gist of it.
As much as Reagan and W slashed the top rate, the income tax is still the only progressive tax left. Sales taxes, vats, and any other consumption tax is regressive to the extreme. Let me give you an example. I live in Washington state, the most regressively taxed state in the Union. We have no income tax, just sales tax, property tax, gasoline tax, sin taxes, and fees. So, the bottom quintile of earners end up paying 17.8% of their income to state taxes and fees. The top 1% pay 2.9% of their income to state taxes and fees. Why? Because low income people spend ALL of their money. The rich spend even more, but as a percentage, they spend only a small part of their income on consumables.
The right loves to claim that the upper half of income earners pay almost all of our taxes. They lie. Federal income tax does let retirees, part time or seasonal workers, and minimum wage workers off the hook when it comes to federal income tax, if their income is minimal. But those hard working minimum wage workers, are part of the 80% of all workers who pay more in payroll taxes than income tax. And if you live in regressively taxed states, like Washington, add another 18% to that rate. Let's see, Grinch paid less than 15% federal taxes, and if he lived in Washington, that would add a whopping 3%. So, he is paying 18% on hundreds of millions of income. What a burden, compared to someone trying to keep their finances afloat while they are paying 33% of their income for the same taxes (in Washington state). Oh, that's right, Grinch doesn't live in Washington, so he has to fork over about 5% of his income to Massachusetts. Well, he is paying 20% then, what an unfair system.
Do away with corporate taxes, they either get passed on to consumers, or sheltered in the Caymans. Do away with sales taxes. Do away with payroll tax maximums. Let us ALL have a fair, progressive tax that rewards effort, while not being punitive to the hard working, struggling family man.
The right loves to claim that the upper half of income earners pay almost all of our taxes. They lie. Federal income tax does let retirees, part time or seasonal workers, and minimum wage workers off the hook when it comes to federal income tax, if their income is minimal. But those hard working minimum wage workers, are part of the 80% of all workers who pay more in payroll taxes than income tax. And if you live in regressively taxed states, like Washington, add another 18% to that rate. Let's see, Grinch paid less than 15% federal taxes, and if he lived in Washington, that would add a whopping 3%. So, he is paying 18% on hundreds of millions of income. What a burden, compared to someone trying to keep their finances afloat while they are paying 33% of their income for the same taxes (in Washington state). Oh, that's right, Grinch doesn't live in Washington, so he has to fork over about 5% of his income to Massachusetts. Well, he is paying 20% then, what an unfair system.
Do away with corporate taxes, they either get passed on to consumers, or sheltered in the Caymans. Do away with sales taxes. Do away with payroll tax maximums. Let us ALL have a fair, progressive tax that rewards effort, while not being punitive to the hard working, struggling family man.
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