Lets Raise Taxes on Big Corporations!

Njaco · 09-30-2008, 12:47 PM

Obama and the Democrats want to raise taxes on big corporations. The Republicans are accused of lowering taxes on big corporations.

So what party has a handle on the Corporate Tax question?

Lets see.
When US companies go into business overseas, these companies, according to the US tax code, only have to pay taxes on their overseas earnings when the money is brought back to the US. But do they? If they invest abroad, they only pay the host countries lower tax rate, not the higher US tax rate. So instead of money from these companies coming back to the US in the form of tax revenue, it stays overseas. And as long as the US has a higher tax than say, China or Mexico, those companies will continue to invest abroad and slash at home. Its a loophole that nobody is willing to touch.

According to US Securities and Exchange Commission;
General Electric has $62 billion stashed overseas
Pfizer has $60 billion
Exxon-Mobil has $56 billion

Instead of changing the tax code to close this loophole or lowering taxes to be competitive with foreign countries, we must "tax the rich"!

So next time some democrat says we must tax rich companies, thank him for taking jobs away from the US.

JugBR · 09-30-2008, 01:25 PM

great idea not raise the taxes of corps, but raise the taxes of fat asses

see the example of south korea, low profits to big productions and more jobs.

timshatz · 09-30-2008, 02:25 PM

Good luck. No law in the world says a corporation has to stay in America. Simply move the headquarters offshore and sell in through intermediates. End up with more money in the bank doing that then paying taxes through corporate income taxes.

Besides, US Corporate income taxes are the amongst the highest in the world.

Old Wizard · 09-30-2008, 11:14 PM

Quote:

Originally Posted by timshatz

Good luck. No law in the world says a corporation has to stay in America. Simply move the headquarters offshore and sell in through intermediates. End up with more money in the bank doing that then paying taxes through corporate income taxes.

Besides, US Corporate income taxes are the amongst the highest in the world.

How many of them pay anywhere near to their purported tax rate? And I'll bet that most of them have found enough loopholes to avoid much of it.

Torch · 09-30-2008, 11:49 PM

I find this conversation interesting because I work for one of the largest IT corps in the world. I've been with them 30.5 years. I have mixed feelings. I am so pissed at the CEOS that get a 20mill pay off after tanking a bank(WAmu) after being in the position after what? 17 weeks. On the other hand The corp has been pretty good to me,benifits,salary,raises(nothing to brag about) but I always felt as long as I broke my ass I would get paid.. It almost seems that this Global economy is creating a cast system where you have the execs making big bucks while the rest of us world wide will make for arguments sake 30k$ a year. If everybody makes 30k a year then you can compete for the raises,bonuses etc on a level playing field and see if you can beat Indira in India or Pierre in France or Salvatore in Italy. What a thought huh?, Viva la revolucion....Damn i think i've had one too many Makers Mark. Ga night.

Marcel · 10-01-2008, 12:40 AM

Quote:

Originally Posted by timshatz

Good luck. No law in the world says a corporation has to stay in America. Simply move the headquarters offshore and sell in through intermediates.

I like the idea, let them come to Europe. Now you know why Obama is so popular outside the US

JugBR · 10-01-2008, 12:46 AM

the most part of enterprises are already out from us.

even telemarketing and call centers to us customers are hosted in india.

Njaco · 10-01-2008, 07:07 AM

Quote:

I have mixed feelings. I am so pissed at the CEOS that get a 20mill pay off after tanking a bank(WAmu) after being in the position after what?

I really don't mind people in charge making money although the amounts really grate me.

Quote:

How many of them pay anywhere near to their purported tax rate?

Thats the point. They are only paying taxes on what they make HERE in the US because they keep it abroad and expand, hire workers and enjoy a foreign economy.

I started this because in my area, Obama and his cohorts are flashing economy ads and the first thing he states is that he will raise takes on big corporations. But with this little gem the truth be told. Continue to raise taxes here at home and those big corporations will continue to keep their money overseas. No offense to the other countries represented here, but its a shell game. The sound bite sounds good but the reality is different. Lower the taxes so the companies won't be burdened and bring those $$ back to this economy.

timshatz · 10-01-2008, 09:03 AM

They corps wouldn't go to Europe, they'd base themselves in some country with favorable tax laws. Already happens. There was a story in a business news periodical about a building in the Caymans, something like a 3 story office building, that had something like 800 corporations in it.

As for paying the tax rate, there are a lot of ways around it. Most corporations aren't big corps, most in the US are actually under ten people. And the tax rate you are talking about increasing is for a "C" corp. For an "S" corp, the tax rate is what the owners pay on their income, usually around 35%. For the "C" corps, there are write offs for buying equipment and tax credits for doing things congress wants done, but most of the monies (for the smaller ones) are disbursed in the form of payroll and are taxed at that rate. For large corporations, what is issued other than pay or bonuses is done in dividends and that is taxed twice (once at the corporate rate, then again when you get it).

I agree with you that Big Corp CEOs make way to much money. But they are, for the most part, limited cases. Most of these guys make a salary in the high 6 to low 7 figure range and get bonuses in the form of stock options. If the stock goes up (which is what they really are supposed to do), then the options are worth more (they don't even have to exercise them-buy the stock- they can just sell them as options). If not, then they don't make a big bonus.

Just some details on it all.

Bluehawk · 10-01-2008, 10:07 AM

For about 200 years the Roman Empire enjoyed what is now called "Pax Romana"... a period of prosperity and relative peace.

Prior to that came the slave revolt... many many thousands of slaves physically resisted the government, and ended up being slaughtered in hideous ways.

It has ever been thus, and ever shall be.

I quit worrying about it, after my last heart attack and the birth of my first grandbaby.

timshatz · 10-01-2008, 12:25 PM

Bluehawk, that might just be the best "Plan" I've heard in the last two weeks.

Thanks for the advice. Will definitely take it under advisement.

JugBR · 10-01-2008, 12:44 PM

Quote:

Originally Posted by Bluehawk

For about 200 years the Roman Empire enjoyed what is now called "Pax Romana"... a period of prosperity and relative peace.

Prior to that came the slave revolt... many many thousands of slaves physically resisted the government, and ended up being slaughtered in hideous ways.

It has ever been thus, and ever shall be.

I quit worrying about it, after my last heart attack and the birth of my first grandbaby.

go enjoy your first grandbaby and forget this crap man ! btw congratulations !

Bluehawk · 10-01-2008, 09:13 PM

Thanks guys...

Maybe it is time for the young ones to take over, after all.

I'll retire to the porch, and watch, and hope.

I gave it my best shot, for 50 years

Harvard · 10-09-2008, 12:29 AM

Democrat? Or just one of their talking points? Yes, those Big evil corporations!

This discussion is based on class warfare or class envy. It totally misses the point, and is a topic that we would expect to come out of Obama's mouth.

Yes let's restrict the biggest corporation of all, the gov't. The point should be why don't we make the feds lower taxes on everybody. The Feds are actually legally stealing everybody's money.

Look at the 15% additional tax for Social Security on small business! A small business owner typically pays 33%. 15% of that goes to social security. I think this is the outrage.

I don't think it's an outrage that corporations try to use loopholes. I would do the same thing. The real outrage is that the gov't steals your money in failed programs like social security, and says "oh well we don't care, give us more"!

Njaco · 10-09-2008, 08:12 AM

You hit it on the head, Harvard (nice to see your back

) I don't mind corporations making money and using looholes. But those loop holes are there because the gov. fails to fix them. And small business gets whammed every time. From local restrictions like permits and zoning to the feds with SS and DEP , etc. Its a croc.