Taxing the rich.
@morethanamolehill (1586)
United States
April 17, 2008 11:34pm CST
What if we eliminated corporate tax in America?Calm down... breathe normally...4 3 2 1. Ok now read carefully....
I heard someone talk about this on the radio tonite, and When I realized the implications I almost had a heart attack. I hear people all the time saying (parroting) that we should increase taxes on the rich. I think that is the stupidest idea in the world. Who do you think pays those taxes? Who do you work for? Now if your answer has anything to do with the gov't then you aren't going to like what I am saying. I won't spend a lot of time going into how much "the rich" already pay but let's just say that it's the 20/80 rule on steroids. Something like 5/95.
But really, Who is REALLY paying those taxes? WE are. Big companies call this CODB or Cost of Doing Business and Taxes are part of the price you pay for an item. That is BEfOre Sales Tax! So you, Johnny and Jane Taxpayer, You pay tax when you earn money. You pay tax when you spend it. You even pay tax when you save it and earn interest. On top of THAT. You are also paying the tax of the company THAT MADE THE PRODUCT! (it's in the price.)
So again... What if we ended Corporate Tax? First, Outsourcing would end. Do you ever wonder WHY companies ship jobs overseas. Cheaper labor is part of it. But Cheaper taxes and Fewer regulations are another part. A much bigger part. Without corporate taxes, Foreign companies would be begging to operate here. Prices would be much lower. the Economy would flow like Drano. Innovation would soar. Research and Development would be a larger part of society and people would have better jobs to choose from. If Corporations did not pay taxes they, like Churches today, would have less say over what happens in Government and Taxpayers would have more power. Any objections???
2 people like this
4 responses
@guinness1982 (261)
• United States
18 Apr 08
I agree!! Is this something you just heard some people talking about would be a good thing on the radio or is this something there actually talking about in the government? is there anything I can read about this?
2 people like this
@morethanamolehill (1586)
• United States
19 Apr 08
Actually, I just heard someone mention eliminating Corporate taxes and the idea rapidly fermented in my head. He also mentioned that Japan has no corporate tax but I have not confirmed that yet. Someone else on this board talked about Ireland turning around a sagging economy by greatly reducing corporate tax.
1 person likes this
@gewcew23 (8007)
• United States
18 Apr 08
Morethanamolehill welcome to the club. This club here on MyLot is made up of people who understand taxes, who payes them, and what it does to the economy. I have always used the statement that no economy anywhere in the world, or at any time in history, has been jump started by tax increases. Look at Ireland their economy was horrible then they cut their corporate tax and regulations, and now they have a very strong economy. Jobs came to Ireland from U.S.A, I wonder why. Instead of cutting taxes and regulations, some would increase them. That would be a great disaster. Hoover increased taxes through tarriffs thinking it would fix the depression. How did that work out?
1 person likes this
@bobmnu (8157)
• United States
18 Apr 08
If you look at Michigan you will see just what you are talking about. they are creating more government jobs and raising taxes and are getting deeper and deeper into a recession. Tax cuts work for the rich because they invest then savings into things that create jobs. Just like the soldier who is usually the last to call for war, the rich want to eliminate poverty because if more people are working the rich will get richer. If people do not work then the rich stop making money. The problem is that encouraging people to work does not get the politician votes.
1 person likes this
@morethanamolehill (1586)
• United States
18 Apr 08
gewcew23, thanx, I actually felt like my eyes were opened last night, I have always been for lower taxes, but this sounded pretty radical. Maybe it's just what we need. Bobmnu's point about Michigan is well put. I grew up in Michigan. That state used to be a national leader, now they are struggling to get by. My sister and Bro in law still live there and tell me about all of the empty stores and businesses, while still clinging to their liberal politicians who promise to help the poor by taxing the rich. Then they wonder why those Corporations won't stay and pay those taxes.
1 person likes this
@MntlWard (878)
• United States
18 Apr 08
Well, these are all results that could happen, but it would vary from corporation to corporation.
I'm not sure lowering corp taxes would end outsourcing at all. You acknowledge that corp. taxes aren't paid by the corp, anyway: they add their tax bill to the price of their goods and services. So why would reducing corp. taxes reduce the practice of outsourcing if the corp isn't paying the taxes, anyway?
@morethanamolehill (1586)
• United States
19 Apr 08
The simple reason is that, as I said, ending corporate tax would attract companies from all over the world. Companies (I am speaking generically here) will always go where they are able to operate with the least hassle. Remember, when the company you work for takes taxes out of your check they also match the amount. That is more money that they would be able to pay you. Maybe they wouldn't HAVE to but if they didn't (raise wages and lower prices) then they would have a hard time operating in an environment where it is common practice.
Capitalism works best when it's allowed to work. The current crop of Socialist leaning politicians we have today are doing their best keep our economy sluggish so that they can appear to be doing something to help "the little guy" But America was founded as a place of "rugged individualism" where people take care of themselves and if necessary, their neighbors and family. But when people learn to rely on government that all goes out the window.
To feed a man for a day, give him a fish.
To feed a man for life, teach him to fish.
To make him a slave, Give him a fish everyday.
1 person likes this
@friendship (2084)
• Canada
19 Apr 08
If we should increase taxes on the corporations, the people will finally get domino effects. The corporations can increase the prices of their products. Then, what are we going to do with that? Complain about it?? Well, the government can urge them so that they won't increase the prices of their products by imposing a rule. Then, the corporations won't be able to make enough profit. As a result, they begin laying off their workers or they will ship job overseas.
Churches are different from corporations because churches are a non-profit organization. Churches don't produce goods as what corporations do. So, churches don't have power nowdays. In my opinion, if corporations did not pay taxes, they would still have more power because they create jobs to the people and I don't think the government will make a policy that corporations don't have to pay taxes because the government needs money in order to develop its infrastructure. You know what... in term of taxes, the biggest revenue is coming from the corporations.
