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One Month to Go Until We Have the World's Highest Corporate Tax Rate

16 comments, 305 views, posted 1:29 pm 02/03/2012 in News by Viscera
Viscera has 13619 posts, 1806 threads, 94 points, location: 1123 6536 5321
Jarl of Glencoe

Just one month from today, the United States will have the highest corporate income tax rate in the developed world, surpassing Japan.

Just one month from today, Japan will lower their corporate income tax rate from 39.5 to 35 percent. When they do so, the United States will officially have the dubious distinction of possessing the highest corporate income tax rate in the developed world, a federal/state integrated rate of 39.2 percent.
To put that in perspective, the average in the developed world (OECD) is only 25 percent. Our six major trading partners--Canada, Mexico, the United Kingdom, Japan, Germany, and France--will all have a lower rate than we will have. As a result, capital and jobs will continue to flow overseas, rather than staying here to create jobs, increase wages, fund pensions, invest in new business, or grow nest eggs.


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Comments

1
1:31 pm 02/03/2012

Viscera

it's kind of hard to make money when your company is taxed at a 40% rate, andthen you are expected to provide benefits, wages, community services and still turn a profit after operation expenses.

5
1:53 pm 02/03/2012

griffonner

I sympathise. One thing that we used to be able to do (in the UK) to legally avoid paying corporation tax (as it was called in the UK), was to invest the money in new plant et cetera. I believe, particularly for small businesses, this was actually a great idea, because if you were in profit, and by enough to worry about the tax bill, then it made sense for everyone (country, company and staff) to modernise/improve the business. Then came along a government who ripped that out of the system, and lo and behold a few years later we were being told that businesses weren't investing! Doh!

By and large, I think, the problem we have is that we have systems that sensibly demand that politicians seek re-election every so many years, but as a bi-product of that caution, governments only have real 'forward vision' for about the length of their term in office. I think this possibly explains why we sometimes (well, I do) think that they practice knee-jerk legislation... and seem to carry on running from one end of the see-saw to the other in an effort to balance things by plugging the holes in their policies.

There has to be another way??????

1
2:04 pm 02/03/2012

thecrookedman

2
2:06 pm 02/03/2012

Quaektem

Yup, pre-tax profit up. Now take 40% of all of it and give it to the Feds.

2
2:07 pm 02/03/2012

thecrookedman

Bloomberg: Corporate profits shifted overseas, dodge taxes

As U.S.-based companies expand globally, they keep profits overseas, legally out of the reach of the Internal Revenue Service. Lawmakers from both political parties point to the stockpiling as a symptom of a failed corporate tax system, even while they remain deadlocked over whether the U.S. should impose higher or lower taxes on its companies’ global profits./i]

1
2:19 pm 02/03/2012

djskitzy

as per normal, griffoner has hit it on the head, in a way that is far more articulate than I could possibly manage, but I agree 100%, if I wasn't so busy being a Dad and stuff, I'd have said that

2
2:20 pm 02/03/2012

griffonner

Sadly, I think Quaektem's right.

2
2:21 pm 02/03/2012

griffonner

I suppose it could be worse.... they could give the revenue to the banks instead again!

1
2:28 pm 02/03/2012

djskitzy

who said they stopped doing that? I didn't hear about that. ()

2
4:17 pm 02/03/2012

backroom

Yawn....
Are Taxes in the U.S. High or Low?

Interesting note...
The author has worked for Paul, Kemp, Reagan and H.W. Bush.

2
4:48 pm 02/03/2012

backroom

Quote by griffonner:
Sadly, I think Quaektem's right.


Yes. I am sad when I think that, too.

1
5:01 pm 02/03/2012

Quaektem

Quote by backroom:
Yawn....
Are Taxes in the U.S. High or Low?

Interesting note...
The author has worked for Paul, Kemp, Reagan and H.W. Bush.



First paragraph pretty much demonstrates author's lack of either knowledge or integrity:

Historically, the term “tax rate” has meant the average or effective tax rate — that is, taxes as a share of income. The broadest measure of the tax rate is total federal revenues divided by the gross domestic product.

Basically, he gives the correct definition of 'tax rate', then used a completely different measure to make his point of how the 'tax rate' is low.

Remember boys and girls, GDP includes government spending!

1
5:02 pm 02/03/2012

Quaektem

Quote by backroom:
Yes. I am sad when I think that, too.



Imagine how much it frightens me!

0
6:18 pm 02/03/2012

backroom

Quote by Quaektem:
Basically, he gives the correct definition of 'tax rate', then used a completely different measure to make his point of how the 'tax rate' is low.


Actually he is demonstrating how Republicans are using irrelevant information to falsely claim the tax rates are too high.
Sound familiar?

Quote by Quaektem:
Remember boys and girls, GDP includes government spending!


Ahem...
[sarcasm font]And anyone who disagrees with Q on when and how GDP relates to taxes is wrong.[/sarcasm font]

0
8:12 pm 02/03/2012

Vormid

If I'm wrong...I don't want to be right.

1
8:38 pm 02/03/2012

Quaektem

Quote by backroom:
Actually he is demonstrating how Republicans are using irrelevant information to falsely claim the tax rates are too high.
Sound familiar?



1. Tax rate is how much an individual or business pays. Revenue is what is taken in by the government.

2. This article is about Corporate tax rates, not income taxes, payroll taxes and the rest, therefore overall revenue (whether or not it's compared to GDP) is even more irrelevant to the discussion.

3. The economic slump has cut into the profits of most businesses (for example the ones not on the S&P 500 list) which will also affect tax revenue, that dosn't have a thing to do with the argument on whether or not the rate of taxation is too high.

Thank you for playing.

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