TPS Posted December 20, 2011 Posted December 20, 2011 What if all corporate income tax was eliminated? Wouldn't that funnel capital to stockholders or allow the corporation to spend more on R&D or capital improvements? The stockholder would eventually pay more taxes on more money earned or the company would spend it on creating jobs. Sounds simplistic but makes sense to me. Wouldn't this tend to make more companies want to locate their headquarters in this country? Any corporate tax is passed on as a cost, so, yes, I agree with that thought. There is one problem, you need some mechanism to ensure that corps don't hoard excessive cash as they are currently doing. Either pay it out as dividends to be taxed at the personal rate or spend it to get it in circulation. Most of the bottom 80 percent already arent paying taxes. No sales tax? No gasoline tax? No payroll tax? No indirect property tax in the rent? Or just no income tax?
Dan Posted December 20, 2011 Posted December 20, 2011 Fixed. Perhaps not properly though. Dependind on the model, I believe most Honda cars are mostly made in OH. In the entirely screwed up world we live in, buying "American" car brands means American corporate owners benefit, but American workers lose out. Buying "foreign" means American wrokers have jobs, but the corporate profits go overseas. Nissan trucks, I know are made in MS. So if you really wanna be a good redneck, you need to drive a Nissan not a Chevy.
DC Tom Posted December 21, 2011 Posted December 21, 2011 Perhaps not properly though. Dependind on the model, I believe most Honda cars are mostly made in OH. In the entirely screwed up world we live in, buying "American" car brands means American corporate owners benefit, but American workers lose out. Buying "foreign" means American wrokers have jobs, but the corporate profits go overseas. Nissan trucks, I know are made in MS. So if you really wanna be a good redneck, you need to drive a Nissan not a Chevy. Yeah...but obviously I made my point. And corporate profits are bad. Jobs are good. So the true patriotic duty is to buy foreign.
3rdnlng Posted December 21, 2011 Posted December 21, 2011 (edited) Yeah...but obviously I made my point. And corporate profits are bad. Jobs are good. So the true patriotic duty is to buy foreign. So, being serious and sarcastic in the same post is ok? Edited December 21, 2011 by 3rdnlng
Dave_In_Norfolk Posted December 21, 2011 Author Posted December 21, 2011 What you and the author of that article seem to forget is how do you arrive at a healthy consumer base with wads of disposable income to spend? Does simply raising taxes on the rich provide middle class Americans with more disposable income? Of course it doesn't. So now we come full circle and realize that in order to sustain a healthy consumer base, consumers must have JOBS. It seems this grand theory now rests upon the idea that consumer spending creates jobs, but jobs create consumer spending. Brilliant. If jobs are created in response to consumer spending, and consumers currently spend far more than they earn, and the government subsidizes those who don't earn and allows them to join the spending spree, then why do we sit around ~7.5%-8% unemployment?Heaping taxes on the upper class does sound like a great way to create jobs, though. Jobs in China, Mexico, Vietnam, Indonesia... Because we are recovering from a financial crisis and the economy has to reboot, that doesn't change the fact that consumers drive economic activity
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