U.S. States lead The World In Corporate Taxes

[Blisspath]

That giant sucking sound you hear? That sound is coming from corporations making a run for the border because the US has some of the highest tax rates in the world. So much for that "corporate welfare" argument. If we were to eliminate the awful progressive system and replace it with The Fair Tax we would become the tax haven of foreign companies from all over the world and would have one of the top job markets. I sat down and started doing my taxes and saw that once again I'm going to have to write Uncle Sam a pretty large check. Can anyone explain to me how it is fair for me to pay 36% of my income when others with the same rights pay 10% or less?
http://www.taxfoundation.org/publications/show/22917.html

[phattonez]

I thought that Japan still had higher corporate taxes than the US. Anyway, does it make sense to tax corporations a lot? I mean, who's going to have to pay? The stockholders. What's the point?

[Blisspath]

I thought that Japan still had higher corporate taxes than the US. Anyway, does it make sense to tax corporations a lot? I mean, who's going to have to pay? The stockholders. What's the point?

Overall Japan is number one but 24 states have higher taxes than them. It doesn't make sense. Corporations create jobs and pay dividends not to rich fat cats but to everyday people who own 401Ks and index funds.

[phattonez]

Exactly, if the state wants to tax those rich corporation owners, then tax the people who make a ton of money. Of course you can debate income tax if you want, but taxing corporations hurts everyone.

[rock_nog]

I thought libertarians were among the biggest supporters of the notion of corporate welfare. I mean, isn't the libertarian stance that government meddling is what gives corporations the power to screw over consumers?

I don't understand what your plan is here. We can't just magically reduce taxes for everyone. You want to shift the burden onto the middle class?

[Blisspath]

I thought libertarians were among the biggest supporters of the notion of corporate welfare. I mean, isn't the libertarian stance that government meddling is what gives corporations the power to screw over consumers?

I don't understand what your plan is here. We can't just magically reduce taxes for everyone. You want to shift the burden onto the middle class?
No I want to end all income, SS, and medicare taxes and replace them with a 23% federal sales tax that eliminates taxes on families earning less than the federal poverty level. I would welcome any consumption tax over a progressive income tax.
http://www.fairtax.org/site/PageServer

[Beldaran]

I voted for Ron Paul. I think that sums up my feelings on the matter.

[Icey]

Anyway, does it make sense to tax corporations a lot? I mean, who's going to have to pay? The stockholders.

That's not actually true. It's really hard to determine the incidence of the corporation tax. Legally, yeah, the stockholders (owners) would pay the tax, but they can shift the incidence onto others. Plus, a partial factor tax, like a tax on capital, can actually be borne by labor (workers). The reason has to do with the relative sensitivities of suppliers and consumers to changes in price, and the fact that a tax is going to have an impact on quantity produced as well a change in prices.

Basic lesson here: legal incidence has nothing to do with actual economic incidence of a tax.

Whether or not you philosophically agree with taxation, that's a basic fact.

The argument for a business tax is to preserve the integrity of the tax system. If you have a personal income tax but not a business tax, someone can just hold all their income as retained earnings in the business (which will not be taxed) and then pay it out later. Why is this profitable? Because in the meantime they can invest the money and get a rate of return higher than inflation - a tax deferred is a tax saved. Do I think the current corporation tax is flawed - absolutely. Do I think the rate is too high - definitely. Do I think double taxation of dividends amounts to confiscation - yes. I actually liked the Hall-Rabushka flat tax plan from the 80s and 90s. I don't like the FairTax for a few reasons, which I won't get into here.