Posted on 12/10/2019 12:25:45 PM PST by Brian Griffin
Right now the federal corporate tax is the same whether a corporation operates in high housing cost Silicon Valley or low housing cost Albany, Georgia.
I would set the federal corporate rate tax to an employee housing cost calculation divided by an inflation indexing divisor, rounded up to the nearest 1%.
To keep corporations from dashing out of Silicon Valley and New York City, the rate would be bounded to within 1% of the standard federal corporate rate tax in 2021 and the bounds would be expanded by 1% in each of the following four years. In five years the federal corporate tax rate would vary from say 16% to 26%.
The employee housing cost calculation for a corporation would be based on the HUD fair market rate for a one-bedroom apartment in the zip code area with the most employees of the corporation for tax withholding purposes as of the last payday of the corporate tax year. Other employee housing cost calculations are possible and might be allowed.
The inflation indexing divisor might start at 60 for 2021 and increase by 1 each year to adjust for inflation.
In 2026, if the HUD fair market rate for a one-bedroom apartment in Cheapsburg was $1,040/year, the federal corporate tax rate for Cheapsburg corporations would be 16%.
In 2026, if the HUD fair market rate for a one-bedroom apartment in Expensive City was $2,500/year, the federal corporate tax rate for Expensive City corporations would be 26%.
This system would hold down and eventually lower housing prices and rents in expensive areas. New startups would still cherish Silicon Valley and NYC and wouldn't care about the federal corporate tax rate since they would expect to lose money for a few years.
Decreases in HUD fair market rental rates and HUD payouts would pretty much pay for the corporate tax reductions.
“Congress creates power for itself by manipulating tax rates and exceptions to effect the economy and reward special interests, who like to design tax relief around their unique circumstances to stymie competition. We have a nefarious system that is not at all what the Founders intended. The last thing I would want is more of it.”
How do you feel about the mortgage interest deduction?
I live in a Republican-run county in the Republican-run State of Florida.
Large new developments have to include “affordable” housing.
Perhaps you would let Bernie have his way:
“End the housing crisis by investing $2.5 trillion to build nearly 10 million permanently affordable housing units.”
“Protect tenants by implementing a national rent control standard, a ‘just-cause’ requirement for evictions, and ensuring the right to counsel in housing disputes.”
“Make rent affordable by making Section 8 vouchers available to all eligible families without a waitlist and strengthening the Fair Housing Act.”
“Combat gentrification, exclusionary zoning, segregation, and speculation.”
https://berniesanders.com/issues/housing-all
That $2.5 trillion is about $17,000 per American worker.
“by asking 14,000 wealthy families a year to pay a bit more, we can reduce rents by 10% for millions of families and create 1.5 million good new jobs.”
https://elizabethwarren.com/plans/safe-affordable-housing
There are alternatives to my proposal.
“You can’t screw with supply and demand and not mess something up.”
Dozens of badly run leftist countries are supplying the US with their underemployed/unemployed citizens.
...Or we could cut all current tax rates by (or to) 10% and starve fedzilla.
how about not paying lazy asses to come here or live under highways and we keep feeding these mooches?
Get woke-up Brian.
That’s a non sequitur.
a tax cut that isn’t paid for by being offset by a corresponding reduction in spending is just robbing future generations to pay yourself
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