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The result of “no corporate taxes”
http://rodericdeane.com/ ^ | Sunday September 4, 2011

Posted on 09/04/2011 12:31:53 AM PDT by Bigtigermike

Sarah Palin proposed eliminating all corporate taxes in her speech to the Iowa Tea Party today. This is HUGE. The ripple effect of putting this in place would affect a vast swath of corporate America, in addition to eliminating crony-capitalism.

Consider for a moment all those that would be affected by such a policy. Corporate tax attorneys, CPA firms and countless tax department employees would lurch to a halt in their jobs. The focus of countless corporate controllers would shift from tax avoidance to net income maximization.

Countless corporate lobbyists would be out of a job overnight. Their corporate benefactors would pull the plug on their funding immediately. The focus of corporations would turn away from Washington, DC in a heartbeat.

Companies that have relied on government largess to support their bottom lines would be horrified. Weaknesses in governance would be exposed overnight as the SEC would mandate that companies disclose any risk in their business plans beyond company guarantors. GM and Chrysler would suffer a major downgrade in their stock valuation because the federal government would no longer underwrite and support their operations.

In a word, the free-market would explode! Risk-taking would suddenly be in vogue again and entrepreneurs would be empowered to invest. There would be a massive shift of cash out of savings into new endeavors. Corporations would scramble to find fitting investments for their stockpiles of cash. The value of small companies would skyrocket as these investment dollars would be looking for a good return and compete for the best ideas.

The downside? Washington politicians would immediately demonize the idea as a major impediment to deficit reduction, as if they’ve ever cared about that in the past. The caterwauling about reduced revenues for Washington would be deafening! If such a policy was implemented, we would watch Washington pundits undergo convulsions as they began to realize how their lives would be impacted. There would be no incentive for ANYONE involved in business to pay attention to them.

!


TOPICS: Politics
KEYWORDS: corporations; palin; sarahpalin; taxes
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1 posted on 09/04/2011 12:32:00 AM PDT by Bigtigermike
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To: Bigtigermike
Politicians say a lot of "nice to hear" things on the campaign trail.

Some of those things come back later to bite them in their butt.
2 posted on 09/04/2011 12:42:06 AM PDT by Tainan (Cogito, Ergo Conservitus.)
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To: Bigtigermike

She has clearly thought through all the problems she has to confront as POTUS. Ready to unleash her genius when in the White House


3 posted on 09/04/2011 12:43:53 AM PDT by SarahPalinForPresident2012 (She's runnin')
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To: Bigtigermike; Al B.; Brices Crossroads; b9; mojitojoe; Springfield Reformer; rodguy911; bray; ...
DON'T MISS THIS ARTICLE!

GAME ON!


Sarah Palin's Busy Ping List!


4 posted on 09/04/2011 12:50:20 AM PDT by onyx (You're here on FR, so support it! If you support SARAH PALIN & want on her ping list, let me know!)
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To: Bigtigermike

The elimination of corporate taxes is not going to happen as long as the Democrats and their “mainstream” newsrooms can continue to con America’s ignorant chattering class into believing that a piece of notarized paper filed in some bureaucrat’s office somewhere actually pays taxes. They will, in fact, studiously avoid mentioning that in reality “corporate taxes” ultimately come out of regular working people’s pensions, IRAs, 401ks, college funds, and other investments.

There is no fixing “stupid”.

Remember, this is an America that elected a community organizer from Chicago as President of the United States and Commander-in-Chief of the Armed Forces. We are freaking doomed.


5 posted on 09/04/2011 12:55:33 AM PDT by Lancey Howard
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To: Lancey Howard
Remember, this is an America that elected a community organizer from Chicago as President of the United States and Commander-in-Chief of the Armed Forces.

Agreed, however Governor Palin has figured a few things out. She is bringing along a movement as shown in the House elections during the last election. 2012 is the Senate's turn.
6 posted on 09/04/2011 1:18:19 AM PDT by PA Engineer (SP/XX12: Time to beat the swords of government tyranny into the plowshares of freedom. Freddd is Gay)
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>> in addition to eliminating crony-capitalism.

Not quite. Graft can be had through regulatory chicanery, credits, eminent domain, etc.


7 posted on 09/04/2011 1:32:52 AM PDT by Gene Eric (Your Hope has been Redistributed. Here's your damn Change!)
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To: Tainan

The abolition of corporate taxation isn’t considered a radical idea in most of the world. Even some socialists support it in my country.

The word “corporation” seems to produce irrationally negative feelings among americans, though.


8 posted on 09/04/2011 1:36:33 AM PDT by skintight buffoonery
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To: Gene Eric
This is true, but eliminating corporate taxes has some other nice secondary effects. Streamlining the tax code invariably means streamlining the IRS, whether by design or not. It frees up a huge amount of essentially wasted billions in tax prepration, lobbying, lawyers fees, accountants fees, and makes irrelevant huge tracts of frozen bureaucratic tundra.

Corruption, as you correctly point out, will always find a way. It's just nice that we'll get a lot of fringe benefits from making corruption relocate.

9 posted on 09/04/2011 1:38:12 AM PDT by Steel Wolf ("Few men desire liberty; most men wish only for a just master." - Gaius Sallustius Crispus)
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To: Bigtigermike

It’ll never happen. Too many people have a vested interest in maintaining and exploiting the current tax system. Those people are too far up the corporate and government food chain to stop, let alone slow down.


10 posted on 09/04/2011 1:38:27 AM PDT by factoryrat (We are the producers, the creators. Grow it, mine it, build it.)
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To: Bigtigermike

he US has the highest corporate taxes in the industrialized world, plus we double tax on money earned abroad.


11 posted on 09/04/2011 1:57:30 AM PDT by FormerACLUmember
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To: FormerACLUmember

>>he US has the highest corporate taxes in the industrialized world, plus we double tax on money earned abroad.<<

Not to mention that we double tax dividends; tax SS payments as ordinary income and tax interest on savings.


12 posted on 09/04/2011 2:11:13 AM PDT by NTHockey (Rules of engagement #1: Take no prisoners)
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To: All

It appears Palin is supporting what Perry said about 3 weeks ago about no corporate taxes.

http://www.examiner.com/political-buzz-in-national/rick-perry-proposes-lowering-corporate-tax-rates-to-zero-percent-video


13 posted on 09/04/2011 2:13:52 AM PDT by Texas Deb
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To: Bigtigermike

What’s the downside?


14 posted on 09/04/2011 2:23:43 AM PDT by exnavy (May the Lord bless and keep our troops.)
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To: exnavy

Corporations...


15 posted on 09/04/2011 3:14:10 AM PDT by Errant
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To: SarahPalinForPresident2012
It would bring home all the corporate money now parked overseas for tax avoidance. That money in turn would be used to establish new business, buy new equipment, and expand the businesses we have left, resulting in a rapid employment upswing.

Businesses that have moved overseas would rush to return to the new tax-free America and re-start doing business here, building new plants and offices, re-employing Americans who want to work.

If only our President and clowns in Congress could see the truth of a non-partisan solution...

We could do this because we are Americans and we are exceptional people.

16 posted on 09/04/2011 3:24:08 AM PDT by Rapscallion (The majority of democrats (50%+) pay no income taxes.)
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To: Lancey Howard

The elimination of corporate taxes can only happen if the tax system itself is changed. The most fair tax is a sales tax with zero other taxes.

Everyone would pay for what they buy from me to you to the hardware up the road to the corporation in the big city.

If you buy it, then you pay the sales tax on it. Will that get passed on in prices? Yes.

The bottom line is what this article says. There will be so many opposed that it won’t happen for quite a while, if at all.


17 posted on 09/04/2011 3:28:36 AM PDT by xzins (Retired Army Chaplain and Proud of It! True Supporters of our Troops PRAY for their VICTORY!)
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To: exnavy
What’s the downside?

The downside is that left and right-wing radio would not have anything to complain about. Second, politicians and parties might have to stop being so vicious to each other and knuckle down to the job of really doing something constructive for America.....no chance this happen, of course.

Sarcasm/off

18 posted on 09/04/2011 3:29:41 AM PDT by Rapscallion (The majority of democrats (50%+) pay no income taxes.)
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To: Bigtigermike
I agree the taxes D.C. collects from corporations should be eliminated. The taxes which are collected are built into the price of goods or services offered by the corporations. The dirty secret is corporations do not pay taxes, the people or customers of the corporations pay the taxes via price increases.
19 posted on 09/04/2011 3:31:51 AM PDT by no-to-illegals (Please God, Protect and Bless Our Men and Women in Uniform with Victory. Amen.)
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To: xzins
The most fair tax is a sales tax with zero other taxes.

It would also be the most economically effective.

With no taxes on work, capital or production, this country would become a magnet for business development. And though the tax would probably be in the 25% range, pre-tax prices on goods would drop dramatically absent the current taxes.

Anti-capitalists will claim that would never happen -- but competition would force it.

20 posted on 09/04/2011 3:57:34 AM PDT by BfloGuy (Keynesians take the stand that the best way to sober up is more booze.)
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To: Bigtigermike

With the right Senate, House and president, wondrous things are possible. America can still be salvaged, and that is what the next election is about, not maintaining the status quo.


21 posted on 09/04/2011 4:03:19 AM PDT by pallis
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To: Bigtigermike
Here's an extreme example of what happens when government funnels big tax money to certain corporations that are trying to compete in the free market (not, e.g., develop products for defense):

Solyndra Bankruptcy: Big Name Investors Behind Obama’s Failed Green Tech Bet First in Line to Recoup Losses

So, not only did Obama apparently steer a half-billion loan to Solyndra,, when Solyndra (which, according to Time, was already "a mess" when it got the loan), got in further trouble, the WH quietly restructured the loan this winter, with the end result being that Solyndra's major investor, a Dem bag man and major bundler for Obama's 2008 campaign, will get repaid BEFORE taxpayers in the now-declared bankruptcy.

As even Time asked: should government even be making these bets on winners and losers? (NO.)

And should government be down in the weeds trying to figure out how to run a corporation such as this one b/c it made a major investment of taxpayer money in it? (NO.)

When Carney was asked whether it was a good business practice to give Solyndra a half-billion dollar loan in the first place, he replied that the government "is not a business."

THAT SAYS IT ALL.

Corporate tax law, as well as all these outright and backdoor stimuulus gambits (such as the recent one to use Fannie Mae to give another backdoor bailout to Bank of America), is merely social/political policy that operates outside the reach of normal political accountability.

22 posted on 09/04/2011 4:09:16 AM PDT by fightinJAG (Please stop posting "helpful hints" in parentheses the title box. Thank you.)
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To: Steel Wolf

Also, once streamlined for corporations, it will make it a lot easier to go all the way and streamline the tax cade for everybody.


23 posted on 09/04/2011 4:10:50 AM PDT by fightinJAG (Please stop posting "helpful hints" in parentheses the title box. Thank you.)
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To: fightinJAG

I forgot to state clearly that corporate tax law is also susceptible to major corruption.


24 posted on 09/04/2011 4:12:09 AM PDT by fightinJAG (Please stop posting "helpful hints" in parentheses the title box. Thank you.)
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To: Bigtigermike

Sarah Palin is a “natural” strategic genius. As Sun Tzu said, the greatest general is the one who defeats the enemy leader in his mind and is so undeniably superior in intellect, no blood has to be shed for victory to be gained.


25 posted on 09/04/2011 4:35:37 AM PDT by NoControllingLegalAuthority (Where is the middle ground on insolvency of the United States government?)
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To: pallis

And that is exactly what she meant when she says it’s not enough to just change the team uniform, you have to change the team. Rush talked a lot about the entrenched staffers in D.C. before, they’ve been somewhat constant through several adminstrations...and need to be cleared out.


26 posted on 09/04/2011 4:37:19 AM PDT by SueRae (I can see November 2012 from my HOUSE!!!!!!!!)
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To: Texas Deb

No Perry’s proposal is for funds held overseas right now. A tax holiday. Not even close to what Palin proposed.


27 posted on 09/04/2011 4:52:39 AM PDT by free me (Sarah Palin 2012 - GAME ON!!)
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To: SarahPalinForPresident2012
She has clearly thought through all the problems she has to confront as POTUS. Ready to unleash her genius when in the White House

In the "The Undefeated" her staff in Alaska was interviewed about the release of the "ACES" Bill and they said she and the team went over every item in the bill and defended it, ad nauseum, to each other, so when the press started after them, they knew there was "nothing but right" to defend and they had all the answers.

She sure knows how to write a game plan.

28 posted on 09/04/2011 5:23:36 AM PDT by fedupjohn ("JUST LIKE YOU, I'M NOT FOR SALE!....Sarah Palin 2012)
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To: NoControllingLegalAuthority

Sarah Palin is a “natural” strategic genius.

That's a good way of putting it. There are people exactly opposite mentally from Barack Obama, people who think through things objectively and intuitively, rather than, like Obama and supporters think vocal blabbering, is thinking.

It is our exposure of the phony Noam Chomsky.

Unfortunately a majority of constituency probably do not understand.

One reason the Tea Party must be pointed and explicit in the articulation of conservatism: responsibility, self-honesty, moral discipline.

Johnny Suntrade

29 posted on 09/04/2011 5:40:49 AM PDT by jnsun (The Left: the need to manipulate others because of nothing productive to offer.)
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To: Bigtigermike

In 2010 Verizon paid zero in U.S. income taxes. That same year it laid off something like fifteen thousand workers. GE paid nothing in taxes. GE laid off thousands of workers. Black & Decker paid nothing in taxes. Black and Decker laid off a couple of thousand people. Prudential Financial paid no taxes. Prudential Financial laid people off. Boeing paid nothing in taxes. Boeing laid off workers. So how much lower to taxes need to be before these companies start creating jobs in the U.S. instead of overseas?


30 posted on 09/04/2011 5:57:46 AM PDT by SoJoCo
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To: Bigtigermike
She on the right track for sure but why would we stop there?

How about we just go ahead and do what we need to do and be done with it? The FairTax would do all that she is proposing plus a lot more and the economic boom that would result would FAR exceed anything anyone alive today has ever seen!

Can you say F R E E D O M ! !

31 posted on 09/04/2011 6:00:27 AM PDT by Bigun ("The most fearsome words in the English language are I'm from the government and I'm here to help!")
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To: Texas Deb
Yep, then she vastly improved his "thought" by adding in "eliminating all government subsidies. you either sink or swim just like the rest of us." She also stipulated eliminating or relaxing the miles of regulatory red-tape, that of it which serves no purpose other than to perpetuate the need for more government oversight (read "Ca$h Grabbing).

Thousands of middle-of-the-road to major corporations around the world would be scrambling to open up shop in the U.S. The true energy of the American Entrepreneurial Spirit would be unleashed in an economic eruption that would create millions of jobs (and Trillion$ in revenue to the Government, balancing our debt) within her first term as President, creating massive surpluses in her second).

This is what is possible when a real "leader" actually "leads." Palin will re-write what a historically leviathan political juggernaut looks like... again.

;^\

32 posted on 09/04/2011 7:00:53 AM PDT by Gargantua ("I'm only voting for Palin if I don't die first. I'm obtuse like that." (_8(|) DOH!!!)
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To: Gene Eric

>>...Not quite. Graft can be had through regulatory chicanery, credits, eminent domain, etc...<<

Well then, it’s certainly a start - isn’t it?

Seems to me it’s a *huge* shot across the bow that should rock the beltway boat, however slight. Is the US Congress likely to legislate away corporate taxes just because someone (president, candidate, pundit, poll) says so? I highly doubt any tax-code change that massive could be done within the span of the next Presidential term.

But to get this country back on track, I personally think a bold leader needs to step forward and start challenging the abominations that have become status-quo over the past 50+ years. Throwing down such a jarring challenge to the current behemoth tax-code to get the conversation/debate started is not a bad idea in my opinion.

In the ensuing debate, there may be valid points made pro/con concerning the idea of flat-out abolishing corp taxes, but anyone who thinks it’s a *bad* idea then would be expected to either defend the current tax-code -or- suggest a viable alternative to have a credible argument.

It’s starting to get interesting. Whether she actually runs or not, I do admire Palin for how she can get folks talking. I wish there were at least two other candidates that generated as much water-cooler and friends & family conversations colored with a “brighter days ahead” vibe as Palin does. Most other candidates (at least so far) just tend to get the “better than Obama” vibe.

I’ll admit it’s unusual, considering she’s not even a candidate...


33 posted on 09/04/2011 7:14:46 AM PDT by jaydee770
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To: Gargantua
This is what is possible when a real "leader" actually "leads."

Yowza!

34 posted on 09/04/2011 7:32:26 AM PDT by b9 (Sarah Palin ~ Constitutional Conservative)
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To: skintight buffoonery
The word “corporation” seems to produce irrationally negative feelings among americans, though.

Odd, isn't it? Especially since most people work for one.

Why in the hell would anyone want the taxes on their employers to he higher? Class warfare makes no sense (unless you are trying to gin up votes of the welfare people.)

35 posted on 09/04/2011 8:51:07 AM PDT by Semper911 (When you want to rob Peter to pay Paul, you'll always have the support of Paul.)
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To: SoJoCo
In 2010 Verizon paid zero in U.S. income taxes. That same year it laid off something like fifteen thousand workers. GE paid nothing in taxes. GE laid off thousands of workers. Black & Decker paid nothing in taxes. Black and Decker laid off a couple of thousand people. Prudential Financial paid no taxes. Prudential Financial laid people off. Boeing paid nothing in taxes. Boeing laid off workers. So how much lower to taxes need to be before these companies start creating jobs in the U.S. instead of overseas?

Your statement is the type I would expect from a socialist, an envious person. I suggest you read about the incredible amount of human labor it takes to keep compliant with ALL the taxes and regulations that the Imperial Federal government imposes on humans.

Taxes are priced into everything a corporation provides.

Do you honestly believe that it would be better if all the corporations you listed paid taxes???

Do you think the government would "spend" that money wisely?

You either did not read this article with an open mind, or you just have the leftists mentality when it comes to "corporations."

It is astounding how many Freepers have little understanding of what true Capitalism is, and the wealth it provides to a society. Instead, some Freepers ALWAYS look at corporations as something "ripping" off the consumers.

As far as the layoffs you mention, I suggest you read Joseph Schumpeter for his explanation of "creative destruction."

36 posted on 09/04/2011 9:54:26 AM PDT by sand88 (Sarah Palin announces: Aug 12, Opps!! didn't happen then, but soon will :)
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To: Texas Deb

You know this kind of thing really bothers me. Here everyone is discussing a tax policy from Palin’s speech, but really the important conversation is the policy itself, not who thought of it. I bet plenty of ordinary people think it’s a good idea too, given the scope of comments here. This is an area that I don’t understand so I’m reading through with interest. Then here you come injecting primary politics into it. Can’t we have a policy discussion about anything, regardless of who proposed it without someone doing the “but my guy is better than your guy, neener, neener, neener”!

Cindie


37 posted on 09/04/2011 10:16:02 AM PDT by gardencatz (Proud mom US Marine! It can't always be someone else's son.)
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To: SoJoCo
So how much lower to taxes need to be before these companies start creating jobs in the U.S. instead of overseas?

The big corporations you named have buildings stuffed with accountants, whose sole job it is to game the tax system, so that those companies actually get to keep the money they honestly earn.

You're putting forth a tired (and might I say liberal) class warfare argument that won't do a thing to 'lift all boats'. How bad must economic conditions be, if even major corporations who have the ability to fend off being robbed by the federal government, are letting workers go?

Obviously, you don't see that it's the federal government that is responsible for distorting and undermining our economy. Bad aim.

38 posted on 09/04/2011 10:19:09 AM PDT by Windflier (To anger a conservative, tell him a lie. To anger a liberal, tell him the truth.)
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To: sand88
Your statement is the type I would expect from a socialist, an envious person

And your's is the knee-jerk response of someone who doesn't bother to think things through. I suggest you read about the incredible amount of human labor it takes to keep compliant with ALL the taxes and regulations that the Imperial Federal government imposes on humans.

Obviously all that human labor is paying off since they don't pay any taxes to begin with. So why can that be a complaint?

If all these companies don't pay taxes and they aren't creating jobs here then it isn't the tax structure that is the reason. So what is it? Government regulations? If so then that should be the primary target for action and not a blanket end to corporate income tax. Is it the fact that labor overseas is a fraction of the cost of labor here? Then there is nothing we can do to offset that so why drop their taxes entirely? Why not end all taxes on profits made from work done by U.S. workers and tax the crap out of profits resulting from overseas workers?

It is astounding how many Freepers have little understanding of what true Capitalism is, and the wealth it provides to a society. Instead, some Freepers ALWAYS look at corporations as something "ripping" off the consumers.

If people disagreeing with you astonishes you then you must be in a perpetually astounded state.

39 posted on 09/04/2011 10:26:52 AM PDT by SoJoCo
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To: Windflier
You're putting forth a tired (and might I say liberal) class warfare argument that won't do a thing to 'lift all boats'. How bad must economic conditions be, if even major corporations who have the ability to fend off being robbed by the federal government, are letting workers go?

But isn't the reasoning that if we only cut the taxes on the job creators then they would begin hiring and unemployment would fall and joy would spread across the land? Well here are cases where companies pay nothing and they aren't creating jobs, at least not here. So if taxes aren't the reason why they aren't adding jobs here then wouldn't it make more sense to identify the real reasons and address them?

40 posted on 09/04/2011 10:30:39 AM PDT by SoJoCo
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To: SoJoCo
You're still missing the point. The corporations you named spend enormous sums of money and human capital protecting their earned assets from federal robbery.

If there weren't any corporate taxes, they wouldn't need to have buildings stuffed with highly paid accountants, and could use that same money to purchase labor, equipment, expansion, etc. That means real jobs for regular working people, and greater economic activity all around.

That in turn produces more in tax receipts to the US Treasury. Kennedy, Reagan, and GW Bush all proved that this works when implemented, but the dunderheads and criminals up in Washington rely on the oppressive system we have to keep their power.

From Sarah Palin's Indianola speech:

"...we can and we will make America the most attractive company on earth to do business in. Here's how we're going to do this. Right now, we have the highest federal corporate tax rate in the industrialized world. Did you know our rates are higher than China and communist Cuba? This doesn't generate as much money as you would think, though, because many big corporations, they skirt federal taxes because they have the friends in D.C. who write the rules for the rest of us. This makes us less competitive and restrains the engine of prosperity. Some businesses, they spend more time trying to figure out how to hide their profits than they do in generating more profits so that they can expand and hire more of us.

So to make America the most attractive and competitive place to do business, to set up shop here and hire people here, to attract capital from all over the globe that will lead to an explosion of growth, instead of chasing industry offshore, I propose to eliminate all federal corporate income tax.

And hear me out on this. This is how we create millions of high paying jobs. This is how we increase opportunity and prosperity for all. But here is the best part. To balance out any loss of federal revenue from the tax cut, we eliminate corporate welfare and all the loopholes, and eliminate bailouts.

This is how we break the back of crony capitalism because it feeds off corporate welfare, which is just socialism for the very rich. We can change all of that. The message then to job creating corporations is we will unshackle you from the world's highest federal taxes, but you will stand or fall on your own, like the rest of us out on Main Street.

See, when we empower the job creators, our economy will soar. Americans will get back to work. This plan is a first step in a long march toward fundamental restoration of a strong and free market economy, and it represents the kind of real reform that we need."

41 posted on 09/04/2011 10:52:57 AM PDT by Windflier (To anger a conservative, tell him a lie. To anger a liberal, tell him the truth.)
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To: Windflier
You're still missing the point. The corporations you named spend enormous sums of money and human capital protecting their earned assets from federal robbery.

Successfully, too. So why do they need more tax breaks?

If there weren't any corporate taxes, they wouldn't need to have buildings stuffed with highly paid accountants, and could use that same money to purchase labor, equipment, expansion, etc. That means real jobs for regular working people, and greater economic activity all around.

No, they could lay off all those highly paid accountants and attorneys and pocket the money saved in profits. The one common denominator is that they pay no taxes and lay people off.

That in turn produces more in tax receipts to the US Treasury. Kennedy, Reagan, and GW Bush all proved that this works when implemented...

At tax rates higher than they are now. So again, if it isn't taxes that are the reason why they aren't hiring then what is it?

42 posted on 09/04/2011 11:00:05 AM PDT by SoJoCo
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To: SoJoCo
So how much lower to taxes need to be before these companies start creating jobs in the U.S. instead of overseas?

Welcome to Free Republic, liberal.

43 posted on 09/04/2011 11:02:30 AM PDT by Lazamataz (If Hitler had been as lazy as Obama, the 1940's would have been a very nice decade!!)
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To: SoJoCo
Successfully, too. So why do [businesses] need more tax breaks?

To spend on Free Republic's liberal-zotting Viking Kitties.

44 posted on 09/04/2011 11:03:57 AM PDT by Lazamataz (If Hitler had been as lazy as Obama, the 1940's would have been a very nice decade!!)
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To: Windflier
Did you know our rates are higher than China and communist Cuba?

The problem with that statement is that it is very deceptive. China has a top corporate rate of 25% vs. 35% in the U.S. it is true. But China has a top personal tax rate of 45% vs. 35% in the U.S. Plus China has a top VAT of 17%. Cuba has a top personal tax rate of 50% plus a VAT that is as high as 20% on some items. Plus roughly half the corporations in the U.S. and the majority of foreign companies doing business in the U.S. pay no income taxes. Is that true in China and Cuba?

45 posted on 09/04/2011 11:09:47 AM PDT by SoJoCo
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To: SoJoCo
The problem with that statement is that it is very deceptive. China has a top corporate rate of 25% vs. 35% in the U.S. it is true. But...

No 'buts' allowed. We're talking about corporate tax rates, not personal income tax rates.

There's no deception in what Palin said. The US has the highest corporate tax rate in the world. Sure, some mega corporations have the wherewithal to avoid paying those taxes, but what about the rest?

If you've ever run a business, you know how much time, effort, and money is spent complying with our federal tax regime. Most businesses cannot escape it. The net effect is less earned capital on hand to spend on more staff, equipment, supplies, infrastructure, etc. It makes relocating jobs offshore very attractive to those companies who can manage it.

Ask yourself why foreign firms would bring their operations to the US when our corporate tax rates are higher than their home countries'? Makes no fiscal sense, so they don't do it.

And why would an American firm that already has much of their operation parked safely offshore, bring those jobs back home, when they'll be penalized for doing so?

This is the business logic that you're failing to note. Instead, you seem to be trying to obliquely make the liberal class warfare argument that corporations are simply greedy money-grubbers. Is that it? Is that what you're trying to say? If not, please explain.

46 posted on 09/04/2011 11:30:42 AM PDT by Windflier (To anger a conservative, tell him a lie. To anger a liberal, tell him the truth.)
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To: SoJoCo
...they could lay off all those highly paid accountants and attorneys and pocket the money saved in profits. The one common denominator is that they pay no taxes and lay people off.

I think we're done here. You're rejecting all logic and reason in this discussion, and clinging to your liberal class warfare argument, which pegs you as a lib.

Enjoy your brief stay at Free Republic.

47 posted on 09/04/2011 11:35:58 AM PDT by Windflier (To anger a conservative, tell him a lie. To anger a liberal, tell him the truth.)
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To: SoJoCo; darkwing104
Liberals suck. Willie Green masquaraded as a Populist Buchanan-backer. In reality he was a Union pimp and a Socialist. You look like the same brand.

Darkwing, scan his history and see if you agree. If so, VK his azz.

48 posted on 09/04/2011 11:51:26 AM PDT by Lazamataz (If Hitler had been as lazy as Obama, the 1940's would have been a very nice decade!!)
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To: SoJoCo; 230FMJ; 50mm; A.Hun; abigailsmybaby; AFPhys; Aircop_2006; AliVeritas; Allegra; ...
Plus roughly half the corporations in the U.S. and the majority of foreign companies doing business in the U.S. pay no income taxes. Is that true in China and Cuba?

Simple, American based corporations deduct foreign taxes, and may get a refund on U.S. federal taxes. That's hoe major corporations don't pay taxes as long they are based in the U.S. Have a problem with that? Change the tax codes....

Oh BTW....Do you like kitties? Class envy give me the hives.

Please let me know if you want ON or OFF my Viking Kitty/ZOT ping list!. . . don't be shy.

49 posted on 09/04/2011 7:46:49 PM PDT by darkwing104 (Let's get dangerous)
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To: gardencatz

Yes, we can have a discussion.

And I support what Sarah has proposed and just pointed out that others have also proposed similar things. Bachman has as well. Some are acting as if this has never been under discussion, but it has - that is all I was pointing out.

If that offended some, then I apologize.


50 posted on 09/04/2011 7:50:55 PM PDT by Texas Deb
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