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.
!
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."
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?
Welcome to Free Republic, liberal.
To spend on Free Republic's liberal-zotting Viking Kitties.
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?
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.
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.
Darkwing, scan his history and see if you agree. If so, VK his azz.
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.
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.
Kittie, kittie, kittie....
Where is your source on this statement? And explain why you think increasing taxes on corporations enables them to create more jobs.
bl7E9BNP9-,owO!~~0_1.JPG?set_id=8800005007)
I think he IS Willie Green.
We’ll have to see if he starts pushing light rail!
*Cue the Simpsons “Monorail” song*
A number of sources. Reuters. Forbes. ABC. New York Times.
And explain why you think increasing taxes on corporations enables them to create more jobs.
I didn't say that. What I asked is that if corporations that paid no taxes in 2010 also laid off thousands of employees then how can the claim that eliminating corporate taxes altogether will free these companies to create jobs? If they aren't creating jobs then the reason obviously isn't the tax code. So let's find out what it is and address that area. Alternately, target the business tax elimination to those companies that create jobs. For example, it's a known fact that small and medium businesses create the majority of jobs in this country. So instead of dropping business taxes altogether then make the first million or 5 million or 10 million in profits tax free. That will benefit the majority of the companies and allow them to expand.
Your premise is flawed.
Stating names of publications is not a link bolstering your claim.
IBTZ? No zot yet?
Why would I take your word for it?
I didn't say that.
Yes you did. Your whole premise is that reducing taxes on corporations does not improve their ability to grow and create jobs, based on a false pretense that you cannot support. This is the same as saying that increased taxes on corporations allows them to create jobs. You libs can never explain why increasing these taxes and regulations are good for the economy, so you have to make up a false premise.
Your links don’t support your claims. You didn’t even get the dates correct. Tell me, do you belive that reducing taxes and regulations on businesses will help the economy or not?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.