Corporate Tax Doesn’t Exist!
Posted on | November 24, 2008 | 5 Comments
There has been much discussion about corporate tax or corporate profits tax over the last several years. The tax rate is around 35% in the United States. The decieving fact is that the rate that is charged is very different than the amount that is actually paid by corporations. There are MANY loopholes including deprectiation of capital assets, deductions for capital expenditures and the trickle down effect.If a corporation is taxed 35% for the sale of a good, who do you think is going to assist in paying that tax? Of course the buyer of the good, or EVERY American who makes purchases. The chart created by Dr. Robert Shiller of Yale shows that United States Corporate Taxes divided by Corporate Income has been in a steady decline since the 1940s. What is even more amazing is that even with a steady decline, corporations are still paying little to no corporate taxes due to the loopholes and pushing it off on the consumer. With the amount being charged by the government decreasing, one would think corporations would pay a larger portion of what they SHOULD pay, but that has not been the case.
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5 Responses to “Corporate Tax Doesn’t Exist!”
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November 25th, 2008 @ 12:09 pm
Isn’t the whole point that we the consumer are going to pay in the end, regardless? I mean if the corporations paid more in taxes wouldn’t they just pass the costs onto us in the form of higher product costs?
I don’t know if this is definitely the case, I’m just asking.
November 25th, 2008 @ 2:40 pm
There are MANY loopholes, but “depreciation of capital assets, deductions for capital expenditures” are not loopholes. In fact depreciation is much less favorable to companies than direct expenses of “capital expenditures”. Capital expenditures means buying equipment and infrastructure to make what you sell and are legitimate business expenses.
November 25th, 2008 @ 6:34 pm
The real problem with everything that needs to get out in public domain is this. Economic Expansion comes from the ability to produce more with less manpower, less material and less environmental impact. Economic Recession comes from producing less. About 16 years ago the United States of America started exporting all its technology to the rest of the world and using its capitol along with everyone else to produce an explosion of manufacturing in countries with very cheap, child and sometimes slave labor. This at first increased economic output worldwide as long as the very, very automated United States manufacturing kept going. Once the balance was tipped and the very automated United States manufacturing facilities started shutting down to utilize cheap third world labor it started to take more manpower and more material and more environmental pollution to create less goods. Until we change the system and elect government officials that will change laws to protect automated manufacturing at every level to include food and the utilization of less labor rather than more cheap labor and legislation of better environmental impact rather than move to third world countries that do not care about environmental impact the world will continue into economic recession. Jobs come from economic expansion not bail outs and printing more money. Vote legislators in which will change the laws to make sure that manufacturing of any type is rewarded that increases global economic output and punishes those companies that move to third world countries to utilize more manpower, more material and damage the environment to produce less goods.
November 25th, 2008 @ 6:53 pm
The thing I forgot to add to the last post was that companies move to third world countries to maximize there profit margin by getting around or cheating the existing western laws of minimum wage, child labor laws, slave labor laws, environmental impact laws, excessive material usage tariffs on water and other resources. This can easily be fixed by punishing companies from doing this by banning the sale of there goods in the western world if caught doing this. Then capitol investment would flow to the correct companies who produce more with less manpower, less material, less environment impact. Then the world would benefit from the greatest explosion of technological advancement ever seen in the history of mankind rather than the greatest economic recession and could be depression since the great depression. The glass is more than half full and the people of the United States of America and the Western world need to wake up and realize that they have the power to put into office elected officials who will do this and stop listening to the so called experts who are either lying, bought off or just plain stupid who keep talking about the stock market as if the stock market was everything and bailouts and printing more money will fix things and magically produce more automobiles made in automated plants that are currently shut down like, Wixom Michigan Lincoln plant yet the Chinese plant is making luxury knockoffs utilizing 10 times more manpower and 10 times more material and energy and polluting over 100 times more! That is why we are in worldwide recession and will continue to be until we legislate in rewarding companies that produce more with less manpower and less material and outlaw the sale of goods from companies that get around the laws by investing in other countries. Thank you for reading!!!!
November 25th, 2008 @ 8:34 pm
First of all, a corporation is “a legal fiction” in that it is a paper-created entity with no life (as biology understands life) of its own. Therefore, it should NOT have to pay any tax– the owners (shareholders), Board of Directors, etc. are tax payers themselves; thus any tax on the corporation they run is DOUBLE TAXATION and should be REPEALED. End of story.