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Pawlenty: Deep Tax Cuts and a ‘Google Test’

Liquid Karma said:
Nonsense. Both parties are well skilled in picking winners and losers using the tax code. It's just that the winners chosen by each party aren't the same people. To paint one party as the sole manipulator of the tax code for electoral gains is laughable.
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Dead on. The fact that both parties count on utilizing the tax code for voter manipulation is the main reason why we will probably never see serious tax reform.
 
I'm all for lowering the corporate tax, but I don't believe for minute that the savingsproctor and gamble enjoys on Crest is going to be passed down to the consumer in any real meaningful way.
 
The scam about cutting corporate taxes is that it will create new jobs. That is absolute crap. without increased demand for their products there will be no hiring. Why would there be?
 
WakeandBake said:
I'm all for lowering the corporate tax, but I don't believe for minute that the savingsproctor and gamble enjoys on Crest is going to be passed down to the consumer in any real meaningful way.
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Agreed. I'm clearly no expert on the corporate tax, but it seems like a flawed strategy to collect tax on corporate earnings. It's not something straight forward and consistent like income is for most folks. Corporate tax should be like dues to operate in America, a flat rate based on the size of the company to pay for the infrastructure they use in order to operate their business. Get it up front so businesses can't dodge it.
 
yeah it seems boards would just pocket whatever savings they get.

Do people believe that the day they get lowered that prices will just drop? Would Crest and colgate get into a competitive price war over toothpaste resulting in a much lower price, or would it come down a little and rest at slightly lower price? I don;t know
 
WakeandBake said:
I'm all for lowering the corporate tax, but I don't believe for minute that the savingsproctor and gamble enjoys on Crest is going to be passed down to the consumer in any real meaningful way.
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That's not the reason to reduce the corporate tax rate. The corporate tax rate needs to be reduced from the current 35%, highest in the industrialized world, and the loopholes need to be closed.

The reason for doing so is to generate additional tax revenues. Too many corporations today are paying no taxes, but it's not their fault. It's the fault of the idiots who wrote loopholes into the tax code that allow GE to avoid paying any taxes because they are investing in green energy. (That's just one example)
 
I doubt they honestly believe that. The people who make that argument could care less about the price of toothpaste. It doesn't really affect them one way or the other.

Shorty, if you lower the corporate tax rate, corporations are just going to try to get out of paying that rate. As long as lawyers are cheaper than taxes, they'll choose lawyers.
 
Shorty said:
That's not the reason to reduce the corporate tax rate. The corporate tax rate needs to be reduced from the current 35%, highest in the industrialized world, and the loopholes need to be closed.

The reason for doing so is to generate additional tax revenues. Too many corporations today are paying no taxes, but it's not their fault. It's the fault of the idiots who wrote loopholes into the tax code that allow GE to avoid paying any taxes because they are investing in green energy. (That's just one example)
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+1. It's all about managing corporate tax exposure through effective transfer pricing. You want these companies to pay more US taxes? Lower the tax rate and welcome them back home, instead of allowing them to create a controlled foreign corporation with headquarters in Cayman Islands and a manufacturing plant in Ireland. Profit sits offshore to fund the next plant in Malaysia instead of Columbus. Irony is product is still same product sold in the local Walgreens or CVS... just with the bulk of profits going to the Cayman Islands subsidiary.
 
WPDeac said:
+1. It's all about managing corporate tax exposure through effective transfer pricing. You want these companies to pay more US taxes? Lower the tax rate and welcome them back home, instead of allowing them to create a controlled foreign corporation with headquarters in Cayman Islands and a manufacturing plant in Ireland. Profit sits offshore to fund the next plant in Malaysia instead of Columbus. Irony is product is still same product sold in the local Walgreens or CVS... just with the bulk of profits going to the Cayman Islands subsidiary.
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so lowering it 10 or 15% will stop that? explain....

I would think they stay in the caymans anyway? why would they give a flip?
 
PhDeac said:
I doubt they honestly believe that. The people who make that argument could care less about the price of toothpaste. It doesn't really affect them one way or the other.

Shorty, if you lower the corporate tax rate, corporations are just going to try to get out of paying that rate. As long as lawyers are cheaper than taxes, they'll choose lawyers.
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That makes no sense at all. What good does it do to keep the corporate tax rate at 35% if corporations can use legal loopholes to avoid paying it? You might as well set the rate at 100%. You'd accomplish the same net result as far as tax revenues are concerned.

Reduce the rate to a more reasonable number, eliminate the loopholes.
 
Shorty said:
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That makes no sense at all. What good does it do to keep the corporate tax rate at 35% if corporations can use legal loopholes to avoid paying it? You might as well set the rate at 100%. You'd accomplish the same net result as far as tax revenues are concerned.

Reduce the rate to a more reasonable number, eliminate the loopholes.
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which loopholes? If the loopholes make their rate 0% now, and you remove the loopholes and make it 15% - how does that keep them operating in the US?

might as well make them 0% and then tax the shit out of the super-wealthy on income, capital gains, etc...
 
Shorty said:
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That makes no sense at all. What good does it do to keep the corporate tax rate at 35% if corporations can use legal loopholes to avoid paying it? You might as well set the rate at 100%. You'd accomplish the same net result as far as tax revenues are concerned.

Reduce the rate to a more reasonable number, eliminate the loopholes.
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They'll just open more loopholes. Again, as long as it costs less to open loopholes than to pay taxes, they'll choose loopholes. You make a weird assumption that businesses want to pay taxes, just not that much taxes.

Lower the corporate tax rate to 25% or 20% or 15% and you and others will keep arguing it needs to be lowered and they'll work to keep lowering it.

Shorty, what about coming up with a flat fee straight up? What do you think about that?
 
The "loopholes" is a bunch of populist nonsense.

The perception that no corporations pay taxes due to these nefarious loopholes are analyses from the same people who look at GE's 10-K and conclude ZOMG! GE ISN'T PAYING ANY TAXES!!!1111!!!
 
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WakeandBake said:
which loopholes? If the loopholes make their rate 0% now, and you remove the loopholes and make it 15% - how does that keep them operating in the US?

might as well make them 0% and then tax the shit out of the super-wealthy on income, capital gains, etc...
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One loophole you close is the one that allows a US corporation to run profits through a post office box in Switzerland, like Exxon does today. Then reduce the 35% rate to a more reasonable number, competitive with the rate in Switzerland.
 
PhDeac said:
They'll just open more loopholes. Again, as long as it costs less to open loopholes than to pay taxes, they'll choose loopholes. You make a weird assumption that businesses want to pay taxes, just not that much taxes.

Lower the corporate tax rate to 25% or 20% or 15% and you and others will keep arguing it needs to be lowered and they'll work to keep lowering it.

Shorty, what about coming up with a flat fee straight up? What do you think about that?
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My bad. I thought only congress could change the tax code. I didn't know corporations could do it themselves.
 
There is an incentive for US based multinationals to park money overseas since we have one of the highest corporate tax rates in the world. We should lower the rate and institute a VAT.

The fair tax nonsense somehow ascribes to the belief that the small percentage of the population that is accumulating a lion's share of the nation's wealth needs a giant tax break.
 
Shorty said:
One loophole you close is the one that allows a US corporation to run profits through a post office box in Switzerland, like Exxon does today. Then reduce the 35% rate to a more reasonable number, competitive with the rate in Switzerland.
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Or simply make moving that money illegal. Create an export of capital tax for corporations.

We don't need Switzerland for anything. Let's put outrageous taxes on their holdings inthe US for them doing this.

If they want to steal from us it's perfectly fair.
 
i was halfway joking, but what about a 0% corporate tax rate and then make it up with income, capital gains, dividend, etc? i haven't thought it through but y'all are quicker thinkers anyway...
 
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