America's Corporate Tax Rate/38.91%, 4th Highest In World

[To-Whose-Benefit?]

freebeacon
BY: Ali Meyer   
October 4, 2017 12:30 pm

[excerpt]

http://freebeacon.com/issues/americas-corporate-tax-rate-38-91-fourth-highest-world/

Trump's tax plan reduces rate to 20 percent

The United States' corporate tax rate of 38.91 percent is the fourth highest in the world, according to a report from the Tax Foundation.

The average corporate tax rate among the 202 countries the Tax Foundation evaluated is 22.96 percent.

There are only three places in the world—the United Arab Emirates, Comoros, and Puerto Rico—where the corporate tax rate is higher than in the United States.

[jmyrlefuller]

How do they figure that? Even the highest marginal corporate tax rate doesn't go over 35%, and most corporations never pay that anyway.

Even if we do cut it to 20, as long as there's Double Irish with Dutch Sandwiches, the mega-corporations will still pay zero, and nobody's crazy enough to drop our corporate tax rate that low, with the deficits we're running.

[truth_seeker]

Certain tax avoidance and tax deferral methods, are the result of high US rates.

Some large firms have deferred taxes on foreign source income for decades--and will repatriate some if rates are lower.

With lower corporate rates, firms will elect to incorporate and have their tax domicile in the US.

And many will also continue to utilize tax avoidance and tax deferral methods, too.

[Texas Yellow Rose]

  2 cents worth:  Corporate taxes are a tax on the consumer.

[Bigun]

  2 cents worth:  Corporate taxes are a tax on the consumer.

@Texas Yellow Rose

100% correct!  As are all the costs of compliance which are there even if there is zero tax liability!

[Bigun]

How do they figure that? Even the highest marginal corporate tax rate doesn't go over 35%, and most corporations never pay that anyway.

Even if we do cut it to 20, as long as there's Double Irish with Dutch Sandwiches, the mega-corporations will still pay zero, and nobody's crazy enough to drop our corporate tax rate that low, with the deficits we're running.

I wish they would cut it to zero and stop with the games!

[InHeavenThereIsNoBeer]

Interesting article on ZH in the last couple days pointed out that when you include the VAT on corps, the US total corp tax rate is pretty low.

[jmyrlefuller]

I wish they would cut it to zero and stop with the games!

Yes, and you want to cut all income taxes, levy a 30% national sales tax (with no IRS to collect it, somehow), and establish a socialist basic income guarantee to make it look progressive.

[Bigun]

Yes, and you want to cut all income taxes, levy a 30% national sales tax (with no IRS to collect it, somehow), and establish a socialist basic income guarantee to make it look progressive.

You have exactly no idea what you are talking about.   I want to get rid of the class warfare inducing Marxist income tax, and ALL of the tools it provides the scum in Washington and go back to the form of taxation universally endorsed by our founders in several instances! 

I want my FREEDOM back!

[To-Whose-Benefit?]

  2 cents worth:  Corporate taxes are a tax on the consumer.

Absolutely!

I don't want the Corp Income Tax Reduced.

I want it Abolished. No ifs, ands or buts.

It's sold as a tax on somebody else (the rich), which is complete BS. It just gets tacked onto the final price the end consumer pays, WITHOUT even realizing they're the ones paying it, . .BEFORE, . . . they're taxed again with the additional sales, usage and whatever taxes actually calling themselves taxes.


IF we abolish it, LABOR, even unskilled, will become a seller's market as major Corps relocate back into the US from overseas, ALONG WITH, other, foreign based Corps coming here to beat their own countries' Corp Taxes.

We will no longer have to put up with Illegal Aliens needed to do jobs Americans won't do.

Wages will rise, none of that garbage about a Govt mandated 'Living Wage' because the Labor market will pay it voluntarily.

All of this, at NO cost. There are no negatives with killing the corporate Income Tax.

[To-Whose-Benefit?]

And we kill Communist Chinese dreams of becoming the Dominant Hegemony in their half of the globe.

Without Western Capital Investments and Western Markets, they collapse.

I have no idea how much this Corp Inc Tax Fraud is costing us in additional Military, Intelligence, and related Defense costs to keep chi-Comm Tyranny in check but it's got to be mind blowing.

A major portion of those expenditures/deployments can be reallocated to other places on the planet if we're not keeping Chinese Communism up and running by feeding it.

[jmyrlefuller]

Absolutely!

I don't want the Corp Income Tax Reduced.

I want it Abolished. No ifs, ands or buts.

It's sold as a tax on somebody else (the rich), which is complete BS. It just gets tacked onto the final price the end consumer pays, WITHOUT even realizing they're the ones paying it, . .BEFORE, . . . they're taxed again with the additional sales, usage and whatever taxes actually calling themselves taxes.


IF we abolish it, LABOR, even unskilled, will become a seller's market as major Corps relocate back into the US from overseas, ALONG WITH, other, foreign based Corps coming here to beat their own countries' Corp Taxes.

We will no longer have to put up with Illegal Aliens needed to do jobs Americans won't do.

Wages will rise, none of that garbage about a Govt mandated 'Living Wage' because the Labor market will pay it voluntarily.

All of this, at NO cost. There are no negatives with killing the corporate Income Tax.

So how do you cover the $800 BILLION in corporate income taxes that are part of the federal budget, which, by the way, constitutes over 40% of the total income tax stream? Remember, we're already running a systemic deficit of hundreds of billions a year and have been for nearly two decades now.

[Bigun]

And we kill Communist Chinese dreams of becoming the Dominant Hegemony in their half of the globe.

Without Western Capital Investments and Western Markets, they collapse.

I have no idea how much this Corp Inc Tax Fraud is costing us in additional Military, Intelligence, and related Defense costs to keep chi-Comm Tyranny in check but it's got to be mind blowing.

A major portion of those expenditures/deployments can be reallocated to other places on the planet if we're not keeping Chinese Communism up and running by feeding it.

@To-Whose-Benefit?

Two outta the park in a row!  WELL DONE Sir!   

[Bigun]

So how do you cover the $800 BILLION in corporate income taxes that are part of the federal budget, which, by the way, constitutes over 40% of the total income tax stream? Remember, we're already running a systemic deficit of hundreds of billions a year and have been for nearly two decades now.

GROWTH!!!

The likes of which no one alive today in this country has ever seen!

[To-Whose-Benefit?]

So how do you cover the $800 BILLION in corporate income taxes that are part of the federal budget, which, by the way, constitutes over 40% of the total income tax stream? Remember, we're already running a systemic deficit of hundreds of billions a year and have been for nearly two decades now.

We KILL the excuse propping up all the GD Welfare Handouts by creating a Seller's Mkt for Labor.

Bye Bye moochers and fraudsters on phony disability checks.

Get a job you bum.

It's not as if there'll be any shortage of them available, AND, they'll be offering a much more attractive wage/benefits pkg to induce the unemployed to become the employed.

[jmyrlefuller]

GROWTH!!!

The likes of which no one alive today in this country has ever seen!

There are so many things wrong with that notion.

1. Two of the three most rapid examples of growth in the 20th century (the 1950s and 1990s) came after taxes were raised.

2. The last time taxes were cut as a form of economic stimulus (the Bush tax cuts of the 2000s), deficits did not shrink. In fact, they ballooned.

3. There is literally no mechanism to force corporations to spend their money on labor, and given their responsibility to shareholders first, the shareholders will benefit from any increased profits. The corporations are already sitting on trillions in profits because they feel no need to invest in labor. Automation is slowly making labor increasingly obsolete. You may see growth on paper, but it'll be like Obama-era growth: all to Wall Street, none to Main Street.

[jmyrlefuller]

We KILL the excuse propping up all the GD Welfare Handouts by creating a Seller's Mkt for Labor.

Bye Bye moochers and fraudsters on phony disability checks.

Get a job you bum.

It's not as if there'll be any shortage of them available, AND, they'll be offering a much more attractive wage/benefits pkg to induce the unemployed to become the employed.

"Create a seller's market for labor?" How do you plan on doing that when robots, computers and other machines are able to work for free?

Fundamentals drive markets, not tax policy.

[Bigun]

There are so many things wrong with that notion.

1. Two of the three most rapid examples of growth in the 20th century (the 1950s and 1990s) came after taxes were raised.

2. The last time taxes were cut as a form of economic stimulus (the Bush tax cuts of the 2000s), deficits did not shrink. In fact, they ballooned.

3. There is literally no mechanism to force corporations to spend their money on labor, and given their responsibility to shareholders first, the shareholders will benefit from any increased profits. The corporations are already sitting on trillions in profits because they feel no need to invest in labor. Automation is slowly making labor increasingly obsolete. You may see growth on paper, but it'll be like Obama-era growth: all to Wall Street, none to Main Street.

Did you study economics at the Patrice Lumumba school in Moscow?  You sure do seem to be trying to make the case for it!

What the hell do you think it was that drove our manufacturing base offshore?

[Bigun]

Supply-Side Tax Cuts and the Truth about the Reagan Economic Record

By William A. Niskanen and Stephen Moore
October 22, 1996
Executive Summary
Bob Dole’s proposal for a 15 percent income tax cut has reignited the long-standing debate about the economic impact of Reaganomics in the 1980s. This study assesses the Reagan supply-side policies by comparing the nation’s economic performance in the Reagan years (1981-89) with its performance in the immediately preceding Ford-Carter years (1974-81) and in the Bush-Clinton years that followed (1989-95).
On 8 of the 10 key economic variables examined, the American economy performed better during the Reagan years than during the pre- and post-Reagan years.
Real economic growth averaged 3.2 percent during the Reagan years versus 2.8 percent during the Ford-Carter years and 2.1 percent during the Bush-Clinton years.


Real median family income grew by $4,000 during the Reagan period after experiencing no growth in the pre-Reagan years; it experienced a loss of almost $1,500 in the post-Reagan years.


Interest rates, inflation, and unemployment fell faster under Reagan than they did immediately before or after his presidency.


The only economic variable that was worse in the Reagan period than in both the pre- and post-Reagan years was the savings rate, which fell rapidly in the 1980s. The productivity rate was higher in the pre-Reagan years but much lower in the post-Reagan years.
This study also exposes 12 fables of Reaganomics, such as that the rich got richer and the poor got poorer, the Reagan tax cuts caused the deficit to explode, and Bill Clinton’s economic record has been better than Reagan’s.

Here's a link to the entire study:

https://object.cato.org/sites/cato.org/files/pubs/pdf/pa261.pdf

[Bigun]

John F. Kennedy and Ronald Reagan Proved Tax Cuts Work

http://time.com/4511870/john-f-kennedy-and-ronald-reagan-tax-policy/

I can go on and on!

[To-Whose-Benefit?]

"Create a seller's market for labor?" How do you plan on doing that when robots, computers and other machines are able to work for free?

Fundamentals drive markets, not tax policy.

Robots, computers and other machines are able to work for FREE?

Since when?

Someone has to invent, build, and maintain those machines. They are not free.

Remember that these doom and gloom predictions are in the main coming from pundits writing for and addressing a specific reader: Investors.

If anything, I see automation as a boon to productivity: cutting costs (over the long term) which means Increasing World Market Share and Creating a Larger Domestic and World Opportunity.

With that Opportunity to export will come More Demand, More Production, More Workers needed.

Except that these workers will be skilled in different areas than they are now, higher Education required.

If our Universities had to actually Teach anything beyond recycled Marxist/Leninist dogma the Universities themselves would self police and we could shed a huge portion of our "Govt must provide all things to all the people" (Governor Arnold Kennedy, D. Hollywood) welfare state.

A huge portion of our National Debt is in Govt. Entitlement programs.

You asked who is going to cover $800 B in Corp Taxes.

Well who is going to cover our $2T National Debt?

Let's say Govt. does come up another $800 B short because my model is an unworkable pipe dream.


http://www.youtube.com/watch?v=7YaGwI7GjlA

Good. Another Major Win.

Any time Govt gets defunded Anywhere is a win.

[Hoodat]

The corporate tax rate should be lowered to 0 %.

[Bigun]

The corporate tax rate should be lowered to 0 %.

Damn right!   

[Hoodat]

So how do you cover the $800 BILLION in corporate income taxes that are part of the federal budget, which, by the way, constitutes over 40% of the total income tax stream?

Last year, our government brought in less than $300 billion from corporate taxes, primarily because big corporations hire thousands of lawyers whose sole job is to find ways to avoid paying corporate taxes.  These ways usually consist of tying up money in unproductive ventures to offset profits elsewhere.  So instead of that money going into growth areas, it is purposely invested in areas where they hope to break even if not lose money.

By comparison, the government brought in over $2.7 trillion in personal income taxes, which means that corporate taxes represent only 10% of the take - not 40%.

As for personal income taxes, the entirety of that money goes to a direct payment to another individual.  That's right, every single dollar in personal taxes paid goes towards income redistribution.  Not defense funding.  Not building roads.  But a direct payment to another individual.  And that still doesn't cover it.  Personal 'entitlements' [sic] account for 107% of all money paid in personal income taxes.

We have a spending problem, not a revenue problem.

[Bigun]

Last year, our government brought in less than $300 billion from corporate taxes, primarily because big corporations hire thousands of lawyers whose sole job is to find ways to avoid paying corporate taxes.  These ways usually consist of tying up money in unproductive ventures to offset profits elsewhere.  So instead of that money going into growth areas, it is purposely invested in areas where they hope to break even if not lose money.

By comparison, the government brought in over $2.7 trillion in personal income taxes, which means that corporate taxes represent only 10% of the take - not 40%.

As for personal income taxes, the entirety of that money goes to a direct payment to another individual.  That's right, every single dollar in personal taxes paid goes towards income redistribution.  Not defense funding.  Not building roads.  But a direct payment to another individual.  And that still doesn't cover it.  Personal 'entitlements' [sic] account for 107% of all money paid in personal income taxes.

We have a spending problem, not a revenue problem.

@Hoodat

Yep!  And every single dollar of those costs must be recovered.  Most often they wind up in the prices of the good and services produced  and the are ALWAYS present whether or not there is any actual tax liability.