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Biggest Reform EVER passed thread

Honest question. What is the advantage for corporations to stay in the US and pay US rates? What is their return on their taxes?

These are easy questions to answer for citizens and to justice paying income tax. But I don't know the answer for corporations.
 
PhDeac said:
Honest question. What is the advantage for corporations to stay in the US and pay US rates? What is their return on their taxes?

These are easy questions to answer for citizens and to justice paying income tax. But I don't know the answer for corporations.
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Well for corporations that only are in other countries specifically to reduce their tax burden, you save alot on legal/accounting/officespace/, etc. by only being incorporated in one country. As to a better answer, its not my expertise.

But yes W&B, pretty much all economic ideas anyone has is pretty much a theory at this point. For as smart as people think Paul Krugman is, there are equally smart people that think he's a nut and we should go back to the gold standard.
 
There are also proven economic principles that we can observe- both historical and presently applied in developed nations - and implement in our economy. We don't have to rely on the theoretical, especially theoreticals that have a 35 year losing record for the supposed target of benefit

It's snake oil. Corporations are sitting on their largest mound of cash in history
 
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palmab03 said:
Well for corporations that only are in other countries specifically to reduce their tax burden, you save alot on legal/accounting/officespace/, etc. by only being incorporated in one country. As to a better answer, its not my expertise.

But yes W&B, pretty much all economic ideas anyone has is pretty much a theory at this point. For as smart as people think Paul Krugman is, there are equally smart people that think he's a nut and we should go back to the gold standard.
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Who are the board economists? Does anyone know if anyone has written a counter-argument to Piketty's Capital in the 21st Century? If it has been written, I'd like to read it. I've only read about ~100 pages of Capital, but hope to pick it back up soon. How is it regarded in academia?
 
WakeandBake said:
There are also proven economic principles that we can observe- both historical and presently applied in developed nations - and implement in our economy. We don't have to rely on the theoretical, especially theoreticals that have a 35 year losing record for the supposed target of benefit

It's snake oil. Corporations are sitting on their largest mound of cash in history
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Sounds like you're confusing trickle down economics with lowering the corporate tax rate. And sitting on cash is completely unrelated. They're doing that because there's nothing good to invest in, everything's in a bubble.
 
palmab03 said:
Sounds like you're confusing trickle down economics with lowering the corporate tax rate. And sitting on cash is completely unrelated. They're doing that because there's nothing good to invest in, everything's in a bubble.
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Job creation? Increasing wages?
 
palmab03 said:
The theory that american companies are at a competitive disadvantage for reasons including our high corporate tax rates. According to this theory this hurts everyone.

Also looks like if the Senate plan goes forward, they're throwing money at most everyone to buy their votes. I'm for sale.
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If it's so bad, how come American corporations are sitting on trillions of dollars in CASH? How come they are making record profits?

A tax cut to corps does not create jobs. Demand creates jobs.
 
Like 1/3 of the total corporate cash is being held by 5 major software/computer companies (Apple, Alpahbet, Microsoft, Cisco and Oracle) that do alot of business overseas. It is unrepatriated cash.

And M&A activity has been pretty brisk, so the idea that there is nothing to invest in due to some asset bubble is just palma being palma.
 
RJKarl said:
If it's so bad, how come American corporations are sitting on trillions of dollars in CASH? How come they are making record profits?

A tax cut to corps does not create jobs. Demand creates jobs.
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As Chris said, its mostly concentrated in a few companies, and those companies are holding it rather than distributing it because investors think that Apple and Google can spend money better than they can themselves (i.e. they're so smart), so they value a dollar held in Google's hands more highly than a dollar held in their hands.

The reason for it is completely independent of the tax rate.
 
But the corporate tax reduction is being sold to Main Street and Rube Street Wisconsin as absolutley necessary to make American corporations competitive, in turn make more profits, in turn expand and invest in capital projects which means jobs for them. Which is horseshit.

I’m fine with taxing corporations less if indeed they are at an international disadvantage. But selling it as a a job creator sounds like snake-oil to me, as those (increased) profits going to jobs or wages sounds like a dubious claim at best.

And how about we increase the tax rate on the Richie Rich guys on the top margins to reinvest in American roads, bridges, dams and other infrastructure projects. American firms will be hired, American capital will be purchased, Main Street will get jobs and money and the economy will expand in real ways - not theoretical ways.
 
WakeandBake said:
And how about we increase the tax rate on the Richie Rich guys on the top margins to reinvest in American roads, bridges, dams and other infrastructure projects. American firms will be hired, American capital will be purchased, Main Street will get jobs and money and the economy will expand in real ways - not theoretical ways.
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You must want to raise the top marginal rate to something Roosevelt-like.
 
Seems like most everyone agrees with spending on infrastructure. Odd that the pubs didn't go this route as both sides agree to spend on infrastructure.

If you're fine with taxing corporations less if indeed they are at an international disadvantage, then just be fine with it. Seems like you just don't want to agree with a Republican policy point.

Key Findings

The United States has the third highest general top marginal corporate income tax rate in the world at 39 percent, which is the same as Puerto Rico and is exceeded only by Chad and the United Arab Emirates.
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https://taxfoundation.org/corporate-income-tax-rates-around-world-2015/
 
I have seen that stat before but in and of itself it doesn't prove disadvantage as taxes are just one of many factors
 
Next Up: Tax Reform

WakeandBake said:
I have seen that stat before but in and of itself it doesn't prove disadvantage as taxes are just one of many factors
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It also ignores the fact that the effective tax rate is much lower.
 
I think a nice recent example of what companies do when they are given tax breaks etc... that also happens to be linked directly to trump is Carrier. This, companies need more cash to save jobs, is pushed as some fantasy. When companies get the cash and have the ability they use it ok technology to eliminate the expensive human overhead.
 
And corporations pass that cost through.

Seems like the republicans are always cooking up an idealistic tax policy that allows them or even everybody to pay less and still get things. And the Dems have acquiesced on this shit for 35 years. Revenues need to be at 19 or 20% of GDP, that should be the starting point, then build a progressive system on income with higher rates on the highest income margins, and develop domestic spending on things that add value to America (infrastructure and a healthy and well-trained labor force). No theoreticals necessary. Be pragmatic and work with the principles we all know work. No need to build a better mousetrap. No gimmicks
 
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PhDeac said:
Honest question. What is the advantage for corporations to stay in the US and pay US rates? What is their return on their taxes?

These are easy questions to answer for citizens and to justice paying income tax. But I don't know the answer for corporations.
Click to expand...

Can somebody answer my question? Anybody?
 
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