Dems eye corporate tax rate of 28%

[Peter1469]

Dems eye corporate tax rate of 28% (https://www.atr.org/dems-eye-33-corporate-rate-hike)

The GOP lowered the corporate tax rate to 21%. Many economists attribute the increase in US productivity and employment to this action.

The Dems want to increase the corporate tax rate to 28%. The average state taxes corporations at 6%, so the combined corporate tax rate would be ~36%. The average corporate tax rate for OECD states (Organization for Economic Development and Cooperation) is 23.7%.

A 36% rate would make US corporate tax rates higher than its major competitors harming their ability to compete.

A bad move. Luckily the Senate likely wouldn't bring such an economic disaster of a bill to the floor for a vote.


House Budget Chairman John Yarmuth (D-Ky.) has
announced (https://www.rollcall.com/news/politics/house-democrats-budget-to-assume-corporate-tax-increase) that the forthcoming budget blueprint will call for a 33 percent corporate income tax rate increase by hiking the rate from 21 percent to 28 percent. This would make the U.S. a less competitive place to do business and make the U.S. statutory rate higher than many developed competitors.

State corporate taxes average 6 percent across the U.S, so this planned tax hike would give the U.S. an average top corporate rate of 34 percent.


The current combined corporate rate (https://stats.oecd.org/index.aspx?DataSetCode=Table_II1) across the 36 member Organisation for Economic Development and Cooperation (OECD) is currently 23.7 percent.


This proposed tax hike would make the U.S. rate higher than major competitors such as the United Kingdom (19 percent), China (25 percent), Canada (26.8 percent), Germany (29.8 percent), and Ireland (12.5 percent).

"Hiking the tax rate on American businesses will kill jobs, lower wages, and reduce new investment in America," said Grover Norquist, president of Americans for Tax Reform. "Why do the Democrats want to damage American competitiveness and job creation?"
Not only will raising the 21 percent rate make America less globally competitive, it will also harm today’s strong economic growth, growing wages, record job openings, and lower utility bills (https://www.atr.org/thanks-tax-reform-utilities-are-lowering-rates).


Just last week, it was announced that the U.S. economy added 312,000 jobs (https://www.atr.org/us-economy-adds-312000-jobs-december) in December. Over the past 12 months, wages have grown 3.2 percent and 2.6 million jobs being created.


The U.S. has been named the most competitive (https://www.cnbc.com/2018/10/17/us-named-the-worlds-most-competitive-economy.html) economy in the world. Manufacturers just had their most successful year (https://www.cnbc.com/2019/01/04/manufacturing-posts-best-calendar-year-for-job-gains-since-1997.html) since 1997 and small business optimism is at record highs.


Raising the corporate rate, as House Democrats are proposing, would undo these gains.

[Jeb!]

Go ahead. The economy would crash and they would be blamed for it.

[DGUtley]

Yep. 2020 is not that far off....

[nathanbforrest45]

Go ahead. The economy would crash and they would be blamed for it.


These anal orifices would say it was Trumps fault since he didn't veto the bill.

[Peter1469]

Go ahead. The economy would crash and they would be blamed for it.

It would definitely slow down. I doubt it would crash. The corporate tax rate was 35% (not combined) prior to the last cut.

[alexa]

They should leave it alone.

Let Trump own his recession.

[Peter1469]

They should leave it alone.

Let Trump own his recession.
There may be a recession as a natural cycle but it won't have anything to do with lowering corporate tax rates. If anything that will cause a recession to be lighter and of less duration.

[alexa]

There may be a recession as a natural cycle but it won't have anything to do with lowering corporate tax rates. If anything that will cause a recession to be lighter and of less duration.

Just like they caused wage increases and investment in equipment and manufacturing, right?

:rofl:

[nathanbforrest45]

They should leave it alone.

Let Trump own his recession.
Sure, raising the tax rate, slowing down any increases in private sector growth will surely stave off any recession. Wow, you are about as brilliant as they come aren't you, at least for someone of your mental capacity.

[nathanbforrest45]

Just like they caused wage increases and investment in equipment and manufacturing, right?

:rofl:
Interesting that you missed that happening.

https://www.cnbc.com/2018/01/31/pay-gains-under-trumps-best-since-the-great-recession.html


https://www.forbes.com/sites/chuckdevore/2018/10/16/the-trump-manufacturing-jobs-boom-10-times-obamas-over-21-months/#1c56e5fa5850

[Peter1469]

Just like they caused wage increases and investment in equipment and manufacturing, right?

:rofl:

Do some studying before you peck nonsense out on your key board.

[Common]

The democrats are being smart, they are proposing all the things the I deserve it for free crowd wants

[pjohns]

Democrats often make the mistake--or, at least, they hope that voters will be naive enough to make the mistake--of supposing that corporations (those impersonal conglomerations) actually pay taxes.

Of course, they do not.

They merely pass along the extra cost to the rest of us, in terms of higher prices.

[donttread]

Dems eye corporate tax rate of 28% (https://www.atr.org/dems-eye-33-corporate-rate-hike)

The GOP lowered the corporate tax rate to 21%. Many economists attribute the increase in US productivity and employment to this action.

The Dems want to increase the corporate tax rate to 28%. The average state taxes corporations at 6%, so the combined corporate tax rate would be ~36%. The average corporate tax rate for OECD states (Organization for Economic Development and Cooperation) is 23.7%.

A 36% rate would make US corporate tax rates higher than its major competitors harming their ability to compete.

A bad move. Luckily the Senate likely wouldn't bring such an economic disaster of a bill to the floor for a vote.

Corporate tax is mental masturbation . The consumer pays it anyway. I'm all for doing away with it and the Capital Gains loophole for the share holders. I'm also for limiting "limited liability" to 500,000 per person.

[Jeb!]

These anal orifices would say it was Trumps fault since he didn't veto the bill.


It would definitely slow down. I doubt it would crash. The corporate tax rate was 35% (not combined) prior to the last cut.
Clarification: It would have to happen at a time Democrats control the White House, House, and Senate (because McConnell wouldn't allow a bill like this make it to the floor). The earliest it would be able to happen is 2025. By that time, other countries will have changed their corporate laws to compete with the United States. Corporations would lay off workers or increase prices. Companies would stop moving to the United States because they'd be buying high.

[nathanbforrest45]

Democrats often make the mistake--or, at least, they hope that voters will be naive enough to make the mistake--of supposing that corporations (those impersonal conglomerations) actually pay taxes.

Of course, they do not.

They merely pass along the extra cost to the rest of us, in terms of higher prices.

To a point they can do that. However the laws of supply and demand are not suspended because the government is an idiot. If they raise price too much (and that is a subjective number) then we either don't buy, buy a lesser amount, or turn to an alternative. In the 1980's when Congress in its infinite wisdom put a "luxury tax" on high priced boats several US boat manufacturers went out of business. A lot of potential buyers simply bought million dollar boats in Europe and Asia for less money.

[Tahuyaman]

Go ahead. The economy would crash and they would be blamed for it.
Let's avoid damaging the economy in order to make a partisan point. Besides, they would not take responsibility for the results of their actions. When have they ever done that? They never will.


I remember when Bill Clinton had both the senate and House of Reps. He got his tax increase passed. The economy tanked and he blamed the Republicans because they did not support his plan. The media ran with that.

[Tahuyaman]

The corporate rate should go to 15%. Then gradually reduced to 0%. That would be awesome.

[Tahuyaman]

These anal orifices would say it was Trumps fault since he didn't veto the bill.
He wouldn't need to. The house Democrats are just pandering to their base. No tax increase is getting through the senate. That's not a tough position for Republicans to stand firm on.

[Hoosier8]

Just like they caused wage increases and investment in equipment and manufacturing, right?

:rofl:
Which they have. So sorry for you.

[Peter1469]

Corporate tax is mental masturbation . The consumer pays it anyway. I'm all for doing away with it and the Capital Gains loophole for the share holders. I'm also for limiting "limited liability" to 500,000 per person.

What is the capital gains loophole?

What are you talking about limiting liability to $500K per person?

[countryboy]

Just like they caused wage increases and investment in equipment and manufacturing, right?

:rofl:

Actually, wages have increased, and manufacturing jobs are booming. Much better than Obama's net loss of manufacturing jobs.

[Captdon]

Just like they caused wage increases and investment in equipment and manufacturing, right?

:rofl:

Yes, they helped all that. You're learning.

[Tahuyaman]

Just like they caused wage increases and investment in equipment and manufacturing, right?

:rofl:

Wages are currently rising at the highest rate since 2008 or 09. There's also a substantial increase in manufacturing.

You really should make at least some effort to get informed. The info is out there.

[Tahuyaman]

What is the capital gains loophole?

What are you talking about limiting liability to $500K per person?

If there's a capital gains tax loophole I didn't know about it. I need to take advantage of that.

[Peter1469]

If there's a capital gains tax loophole I didn't know about it. I need to take advantage of that.

Long term capital gains are taxed at a lower rate than income. Short term capital gains are taxed at the same rate as income.

I wouldn't call that a loophole. When you invest your money you take risk. You could lose some of it or all of it.

[Tahuyaman]

Long term capital gains are taxed at a lower rate than income. Short term capital gains are taxed at the same rate as income.

I wouldn't call that a loophole. When you invest your money you take risk. You could lose some of it or all of it.

I knew that. I was just wondering if he was claiming a loophole exists to avoid a capital gain tax all together.




.

[Peter1469]

I knew that. I was just wondering if he was claiming a loophole exists to avoid a capital gain tax all together



.
He knows. He just thinks it is not fair to tax capital at a lower rate than income or rather tax the income from capital less than the income from labor.

[Tahuyaman]

He knows. He just thinks it is not fair to tax capital at a lower rate than income or rather tax the income from capital less than the income from labor.

I don't see why a capital gains tax exists. That money was already taxed when you originally earned it. It will be taxed again when you spend it. It will be taxed yet again when you pass it on to your heirs. How many times should your money be taxed?



We should encourage people to build an invest portfolio by eliminating this tax.

[Peter1469]

I don't see why a capital gains tax exists. That money was already taxed when you originally earned it. It will be taxed again when you spend it. It will be taxed yet again when you pass it on to your heirs. How many times should your money be taxed?



We should encourage people to build an invest portfolio by eliminating this tax.
The tax is on the gain- that money has not yet been taxed.

[Tahuyaman]

The tax is on the gain- that money has not yet been taxed.


The US government is extremely creative on figuring out more ways to take our money. They'll keep doing it as long as some continue to make excuses for them.


There is no reason to tax a capital gain other than they can do it. People who took the risk of investing should be able to realize the complete benefit if there is a benefit.


Let's modify the tax code in a way which encourages people to invest for their future.

[Captdon]

They should leave it alone.

Let Trump own his recession.

There is no recession. This is why you liberals are known as ignorant.

[Captdon]

What is the capital gains loophole?

What are you talking about limiting liability to $500K per person?

I figured he read it someplace and it sounded good.

[Peter1469]

The US government is extremely creative on figuring out more ways to take our money. They'll keep doing it as long as some continue to make excuses for them.


There is no reason to tax a capital gain other than they can do it. People who took the risk of investing should be able to realize the complete benefit if there is a benefit.


Let's modify the tax code in a way which encourages people to invest for their future.
The courts define income, and income however derived.

[Tahuyaman]

The courts define income, and income however derived.

That doesn't mean all income is required to be taxed.

[Peter1469]

That doesn't mean all income is required to be taxed.
Yes. Legislation can exempt types of income from taxation. An example is your employers contribution to your health insurance. If there was not a law exempting it (now it is capped), that would be income added on your W-2.

[Tahuyaman]

Capital gains should be exempted from being taxed as income. Hell, income in any form should not be taxed.

It's idiotic to play tax productivity. We should focus on taxing consumption.

[Peter1469]

Capital gains should be exempted from being taxed as income. Hell, income in any form should not be taxed.

It's idiotic to play tax productivity. We should focus on taxing consumption.

FAIR Tax all the way. We need a constitutional amendment to prohibit income taxes.

[Tahuyaman]

I noticed that alexa abandoned this thread when his comment about no wage growth got knocked out of the park.

[Peter1469]

I noticed that @alexa (http://thepoliticalforums.com/member.php?u=2937) abandoned this thread when his comment about no wage growth got knocked out of the park.

Maybe she/he had something better to do.