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cthulu2016

(10,960 posts)
Sun Feb 12, 2012, 11:55 AM Feb 2012

Obama to pitch lower corporate tax

Two thoughts about this:

1) I don't much care whether GE pays not a penny of 35% or pays not a penny of 28%. So talking about rates is sort of pointless without projections of actual revenue collected under the rate. If the idea is that the federal government collects less revenue from corporate profits than it already does that would suck but loopholes, not rates, are the real determinent of that so talking about rates is probably just politics -- and possibly good politics.

2) The constant argument that the US has "the world's highest" corporate tax rate is one of those "too phony to effectively rebut" red herrings. First, Japan has a higher rate and despite their string of disasters are still a subsansial part of the world. Second, the low rates in first world nations are found in that socialist Europe Obama supposedly wants to turn us into. Te low corporate rates in Europe are because Europe has a Value Added Tax that does a more efficent job of taxing the same activity. European corporations pay higher taxes, not lower.

Exclusive: Obama to pitch lower corporate tax
By Kim Dixon | Reuters – Fri, 10 Feb, 2012

WASHINGTON (Reuters) President Barack Obama will call for cutting the top 35 percent corporate tax rate as early as this month, according to two sources close to the administration.

The president is likely to propose a rate closer to an average of that seen in peer nations, the sources said.

This would jibe with remarks made last year by Treasury Secretary Timothy Geithner, who suggested the United States should be moving to a rate more in line with its major trading partners in the high 20-percent range.

Obama outlined tax measures - including closing tax loopholes for companies that move facilities and jobs overseas - in his State of the Union speech in January, and will lay out principles for revamping corporate taxes by the end of February, a senior administration official said.

...

http://ca.news.yahoo.com/exclusive-obama-pitch-lower-corporate-tax-sources-222544743.html
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mmonk

(52,589 posts)
1. It's all based on the lies of the corporations and the right.
Sun Feb 12, 2012, 11:59 AM
Feb 2012

You have to talk their language when they control information to the public.

exboyfil

(17,865 posts)
3. What should be taxed and what should not be taxed?
Sun Feb 12, 2012, 12:41 PM
Feb 2012

Some thoughts about taxing corporations:

We want corporations investing in the things that employ Americans - Can the tax code encourage this behavior? If so how?

How do you capture the profits made by U.S. companies operating in foreign countries? Do you want to heavily tax the value added for the products that are exported? I think not.

Can you even realistically capture the profits of corporations who operate and sell outside of the U.S. Should those taxes be better paid by the owners of the corporations as personal taxes? Every few years this issue of bringing profits back to the U.S. and taxing them comes up. The push is always on lowering the tax rate in a one time deal to get the profits back into the U.S. This is an insane way to run the tax code.

Corporations benefit from being able to be listed on the NYSE etc since this gives them access to the greatest capital market in the world. Can this value be captured in taxes?

What benefits do U.S. corporations gain from being incorporated in the U.S. and being subject to our tax laws? One obviously is our military presence which helps to ensure that their foreign investments/markets are protected. The collorary to this is obviously that foreign companies also benefit from this protection including the access to our markets.

Remember some facts about taxes.
1. You have no way of taxing a foreign company with foreign owners operating in another country. What if a "U.S." company decides to decamp from the U.S. and operate its corporation on a foreign shore?
2. It is very difficult to tax income derived in foreign countries even by U.S. corporations.
3. Corporate taxes immediately allows an out to any investor who can claim double taxation even though a good chunk of those profits for various reasons are never subjected to U.S. taxes.

One proposal is to drop corporate taxes but raise dividend and capital gains tax rates. Another possibility is to recognize that tariffs are actually a good thing when they are structured to benefit our national interests. Also why do we spend so much money on defense to protect these markets when it just leads to an overwhelming trade deficit and oil priced at levels that does not reflect its cost.


indepat

(20,899 posts)
4. Surely the maximum corporate tax rate looms as the most crucial
Sun Feb 12, 2012, 09:22 PM
Feb 2012

issue affecting our society and the well-being of tens of millions of Americans lwho live in poverty, without jobs, shelter, food, and/or access to health care. For the sake of God, please remove these burdensome tax rates from the backs of large, profitable large corporations that pay little or no Federal income taxes so that this most urgent of societal burdens can be eradicated and forever laid to rest.

BzaDem

(11,142 posts)
5. He isn't talking about lowering corporate tax revenue. He is talking about closing loopholes and
Sun Feb 12, 2012, 09:36 PM
Feb 2012

lowering rates. He said the same thing in the last two state of the union addresses.

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