Forum Post: Very Simple: Why Taxes Create Jobs.
Posted 12 years ago on April 3, 2012, 2:57 a.m. EST by forjustice
(178)
from Kearney, NE
This content is user submitted and not an official statement
Low taxes make it easy to pull profits from a business. High taxes encourage businesses to reinvest in their business rather than draw profits. If you put the money into growing the business you don't pay tax on that money.
So what are you proposing? Higher taxes on business? I've thought that at least 50% should be the rate. On ALL businessess.
Close enough loopholes to get those top corporations paying at least the same effective tax rate as the average worker.
Campaign finance and lobbying reform to keep these corporations from paying politicians to write the tax code to their advantage.
So by the same token you should pay more in income taxes because it will encourage you to contribute more to your retirement account. What a dumbshit.
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The top national statutory corporate tax rates in 2010 among the thirty-one members of the OECD ranged from 8.5 percent in Switzerland to 35 percent in the United States (see table 1). Hence, within the OECD countries, the United States has the highest statutory tax rate at the national level. The picture changes only slightly when we add subnational corporate tax rates to the top national rate. In the United States, the average top statutory rate imposed by states in 2010 added just over 4 percent (after accounting for the fact that state taxes are deducted from federal taxable income) for a combined top statutory rate of 39.2 percent. Among all OECD countries in 2010, the United States had the second-highest top statutory combined corporate tax rate, after Japan's rate of 39.5 percent. In 2011, the United States will have the highest national and combined corporate tax rates in the world when Japan introduces a planned 5-percentage-point reduction to its top rate. (Note: We just topped them)
The statutory tax rate is an imperfect measure of tax competitiveness because it does not take into account the breadth of the tax base.[3] This causes countries with high rates and a narrow base, such as the United States, to appear less competitive. "Effective" tax rates resolve this issue by taking into account tax offsets, the present value of depreciations, and other deductions that narrow the base.
Our analysis finds that the United States' performance in the global economy does not look much better when scored with EATRs than when scored with the top statutory tax rates. The kernel densities show that the United States has moved far to the right of the mode of the OECD distribution. Or, more accurately, the OECD has moved to the left (see figure 3). In 1996, the United States' EATR was slightly below the OECD average, 29.2 versus 30.2. In later years, the OECD average improved by almost 10 percentage points to 20.6 while the United States' EATR remained relatively unchanged. In 2010, the US EATR was 29 percent. Table 2 shows our calculation of the EATRs for the OECD countries.
Effective Marginal Tax Rates. The United States compares slightly more favorably to other OECD countries on the EMTR. However, even its EMTR is significantly higher than the OECD average. According to the distri-bution charts, in 1981 the United States was left of the mode; however, in the intervening years the rates in other countries declined, leaving the United States with one of the highest EMTRs (see figure 4). In 2010, the US EMTR was 23.6 percent, relative to the non-US OECD average of 17.3 percent. All the rates are available in table 2.
Any discussion of tax rates is incomplete without an analysis of trends in corporate tax revenues. With the US corporate tax rates so high, one might expect the share of revenues from corporate capital to be higher in the United States than in other OECD economies. This is not the case, however. As figure 5 clearly shows, except for a brief period in the 1990s, US corporate tax revenues have been consistently lower than those of the OECD economies.
Revenues: The glaring result from comparing the relative tax position of the United States to its relative revenue position is that despite (or perhaps because of) its relatively higher corporate tax rates, the United States earns less federal revenue from corporate income as a percentage of GDP than the average OECD economy.
http://www.aei.org/article/economics/fiscal-policy/taxes/report-card-on-effective-corporate-tax-rates/
American Enterprise Institute? Nice unbiased source. And nice copy paste. Nothing moves a conversation along like a long copy paste. Please talk to me like a person who has read and interpreted the data. Talk like a person. BS aside a large number of the most profitable businesses pay no taxes and get money back. That is their return for buying politicians. Then they pump out all kind of BS papers, and fund astro turf/"grass roots" movements in the name of "liberty", and the net gain for the people is more deregulation of business and more anti-liberty laws like HR347, and indefinite detention.
And do what with those profits?
Improve infrastructure. Create jobs. Improve veterans care. Develop renewable energy. Lower the tax burden on the working class and smaller businesses that can't afford to buy politicians. Among other things.
Edit:pay down the deficit.
So, you would punish success. What would you do to businesses just breaking even ?
This is like Rand Paul's calling not giving a subsidy, "punishment". When it comes to a sense of entitlement, you just can't beat big corporations.
So having to pay the same tax rate as everyone else is punishment?
Same rate as everyone else? Better check again, tens of millions pay nothing at all.
we pay to much taxes already fool. just recently in my town some idiot got a $450,000 dollar grant just to put no smoking stickers on taco trucks in the city. So far he up 10 stickers. Screww you, democrops, greedy government and I hope you all get killed by illegal mexicans soon.
You can almost see the foam frothing from this trailer trash. Sweeping generalizations go both ways.
So ignorant. Do you know the effective tax rate of the top 30 corporations? It's negative. They pay nothing in and still get money back. They don't get this tax rate because it's good for the country. They get this tax rate because they give money to 98% of congress. Dems take the corporate money too. This is not a partisan issue.
Wow, a grant was poorly given. Guess that means all taxes are bad. Please tell me that's just interweb troll logic and not how you approach life.