DescentBB

First time posting in E&C in a long time, but here it goes:

http://www.deccanherald.com/content/149 ... taxes.html

General Electric had a very good year in 2010. The company reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the US. Its American tax bill? None. In fact, GE claimed tax benefit of $3.2 billion.

http://blog.heritage.org/2010/12/15/u-s ... the-world/

Currently Japan holds the inauspicious distinction of having the highest corporate income tax rate in the world (39.5 percent). The United States is a close second, only a few tenths-of-percentage points behind.

This is the problem with our corporate taxes in the United States. I'd actually side with the Republicans on lowering the tax rate that corporations pay, as it is ridiculous for small and medium sized businesses, but many large corporations avoid paying these high taxes altogether. This is just horrible; this does not help our deficit and does not spur job growth here. I can't see how anyone could support these policies unless they have been bought out by special interests.

There is a simple solution: lower the tax rate that corporations pay, but close all loopholes that allow large corporations to pay nothing. This would encourage industry to stay in this country, but still probably increase the tax revenue the government gets.

Oh, also, off topic, but this is the cutest smiley ever:

Dakatsu wrote:There is a simple solution: lower the tax rate that corporations pay, but close all loopholes that allow large corporations to pay nothing. This would encourage industry to stay in this country, but still probably increase the tax revenue the government gets.

So you think shifting the taxes around so corps have to pay more taxes will keep them from looking into alternatives ??!

Grendel wrote:

Dakatsu wrote:There is a simple solution: lower the tax rate that corporations pay, but close all loopholes that allow large corporations to pay nothing. This would encourage industry to stay in this country, but still probably increase the tax revenue the government gets.

So you think shifting the taxes around so corps have to pay more taxes will keep them from looking into alternatives ??!

They probably would, but I still feel that there is something fundamentally wrong when large corporations such as G.E. can pay no US taxes on profits made in the United States.

To me, the major problem seems to be that corporations are taxed on where they're based, not on where they make the money, unlike individuals (for the most part). If corporate taxes were done on where the money was made, I feel that the system would be more fair. Please point out errors in my logic, I'm mostly just brainstorming now

(I'm trying to find total US corporate tax income, anyone have this?)

Dakatsu wrote: They probably would, but I still feel that there is something fundamentally wrong when large corporations such as G.E. can pay no US taxes on profits made in the United States.

To me, the major problem seems to be that corporations are taxed on where they're based, not on where they make the money, unlike individuals (for the most part). If corporate taxes were done on where the money was made, I feel that the system would be more fair. Please point out errors in my logic, I'm mostly just brainstorming now :mrgreen:

Everyone agrees with you. Now grab your captive 57 person audience on the dbb and change the way it works. Do it now. =)

TheWhat wrote:

Dakatsu wrote: They probably would, but I still feel that there is something fundamentally wrong when large corporations such as G.E. can pay no US taxes on profits made in the United States.

To me, the major problem seems to be that corporations are taxed on where they're based, not on where they make the money, unlike individuals (for the most part). If corporate taxes were done on where the money was made, I feel that the system would be more fair. Please point out errors in my logic, I'm mostly just brainstorming now

Everyone agrees with you. Now grab your captive 57 person audience on the dbb and change the way it works. Do it now. =)

I figured the lack of response meant that either everyone was mesmerized by my stupidity or in favour of what I was saying

This may answer some of your questions Dakatsu. It's all about overseas profits and the "foreign profits repatriation tax holiday" that these multinational corporations want before bringing their profits back into the U.S. This is why GE paid no taxes at all, because all that corporate income is still offshore and they want a quickie solution to get around that 35% corporate tax rate.

http://nationaljournal.com/budget/despi ... print=true

What I find disingenuous about corporations whining about our tax rate is that if the tax burden keeps being shifted to the people, they won't have enough discretionary spending to buy said corporation's products. Corporations are cutting off their noses to spite their faces. They're multinational now too, so they could really care less about the financial health of the U.S., as long as they can find buyers for their products in other countries.

If you then get rid of the taxes for the people AND the corporations, like Republicans (although a few Republican governors are shifting the tax burden to poor people and seniors while giving corporations tax breaks in their states) and Tea Partiers want, our infrastructure, consumer protection, food and drug safety, health care, social services, military, etc., all suffer and fail from lack of funding, and so goes the large middle class that gives these greedy bastards their profits in the first place. These corporate bosses can't possibly think that the small number of the wealthy in this country will be enough of a consumer base for decent profits.