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Corp taxes to be lowered, replaced by national sales tax

A forum for discussion of regional topics including oil depletion but also government, society, and the future.

Re: Corp taxes to be lowered, replaced by national sales tax

Unread postby Lore » Sun 21 Nov 2010, 13:19:32

$this->bbcode_second_pass_quote('Expatriot', 'W')ow. Gotta love the Internet.

What would be great on a board like this would be to have a picture of everybody at their computer and face shot, and their resume.

I picture one poster on this forum (not Lore, BTW) as an obese, 45ish woman pounding Doritos, never had a job more important than phone-girl at the pizza joint, pontificating endlessly on everything. And because forums offer a natural filter for everything, there is a presumption that all words deserve equal consideration.

Lore, I picture you as a young, male, liberal. Maybe 28ish.

Your post, above, smacks of having no experience running a business.


Your comment(s) are quite laughable and your condescending remarks illustrate how little you do know about the subject, let alone the assumptions you make about people posting on them.

I happened to be a retired former corporate executive that started with his own entrepreneurial corporate enterprise, built from virtually nothing, which was sold. Later, working in upper management for some of the largest European industrial enterprises in their class as well as in upper management for one of the leading Fortune 200 corporations here in the U.S. I know first hand the responsibility of paying out large personal as well as business tax. I wrote the checks.

I’ve often had to wrestle with pricing issues of this very nature.

If you’d do a little research you’d find the present corporate rate of tax is one of the lowest in recent history even if the marginal tax rate were to go back to that of the Clinton administration. We’ve had higher corporate tax rates during the growth years of 1947 - 1975 at which point both corporations and the average worker prospered.

$this->bbcode_second_pass_quote('Expatriot', '
')You want a 5% tax. Therefore, you'll argue anything to support it, whether it's based on reality or not.

Good luck finding a business that already isn't offering close to the lowest price it can. If the gov sticks a 5% tax on a product, there is no ability to simply "absorb" that cost, as you put it.

That's coming from experience Lore, not wishful thinking

I have a friend who runs a body shop. His profit is something like 8 cents on the dollar of each repair. For a 3,000 fender job is 240 bucks. If you put a 5% tax on the job, his profit goes to 90 bucks.

Your suggestion, above, seems to imply that businesses aren't already attempting to out-sell the other guy with lower prices. Frankly rather silly.


I would venture to say your experience is somewhere several levels behind mine. You're math and understanding of the tax codes is also a bit fuzzy.

You’re friend hasn't obviously been able to create a viable enough business to pay much in taxes, let alone suffer from the increased tax burden on excess profits. If he is incorporated, his wage comes out corporate pretax.

$this->bbcode_second_pass_quote('Expatriot', '
')This gem, BTW :
$this->bbcode_second_pass_quote('', ' ')In fact presently, the reason inflation is so low while commodity prices are accelerated upwards, is for just this reason.


Is really in a class by itself.

Inflation is low? Really?
An independent company that tracks inflation in prices at Walmart is currently indicating over 4% inflation, annually.
That's low?

And even if we suppose, ad arguendo, that inflation is "low," you're contending that companies are absorbing cost increases, thereby keeping inflation low, but commodity prices are ?

Huh?


You must be very young. When I started my first business, during the late 70s, the cost of money was 18%. Try passing that on. Inflation at that point was over 13%.
The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.
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Re: Corp taxes to be lowered, replaced by national sales tax

Unread postby Ludi » Sun 21 Nov 2010, 13:41:02

$this->bbcode_second_pass_quote('Lore', '')$this->bbcode_second_pass_quote('Expatriot', '
')
I picture one poster on this forum (not Lore, BTW) as an obese, 45ish woman pounding Doritos, never had a job more important than phone-girl at the pizza joint, pontificating endlessly on everything. And because forums offer a natural filter for everything, there is a presumption that all words deserve equal consideration.

Lore, I picture you as a young, male, liberal. Maybe 28ish.


Your comment(s) are quite laughable and your condescending remarks illustrate how little you do know about the subject, let alone the assumptions you make about people posting on them.



I'm guessing I'm the obese 45ish woman. :lol:
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Re: Corp taxes to be lowered, replaced by national sales tax

Unread postby dsula » Sun 21 Nov 2010, 14:23:35

$this->bbcode_second_pass_quote('Serial_Worrier', 'I')f I'm a corporation and you increase my tax by 5%, I increase my prices on all products by 5%. What about that you don't get? It doesn't hurt me competitively, because all my competitors will raise their prices by 5%. So by increasing corporate income tax you hurt the consumers. If you want to really hurt the fat-cats, increase the top personal income tax rate. Good luck with that.

No, if you are a smart corporation and I'm raising your taxes YOU WILL MOVE, to a place where you don't have that much taxes. Or you go OUT OF BUSINESS, because you're competing with companies that pay a reasonable tax rates (pretty much everywhere on the planet except the US).
If your world only consists of the US then I agree with you. I can raise your taxes, so to give the money back to consumers in form of welfare. OR I can lower your taxes, lower the price of your product and make it affordable for the consumer to buy it WITHOUT welfare. AND I would also save a lot of burocracy in the process, leading to a smaller government overhead, reducing taxes even further, which again benefits the consumers. Wow, what a train of thought. Turns out that lower taxes seems to be best for everybody, Who would have thought?
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Re: Corp taxes to be lowered, replaced by national sales tax

Unread postby Expatriot » Sun 21 Nov 2010, 14:27:44

$this->bbcode_second_pass_quote('Lore', 'I')’ve often had to wrestle with pricing issues of this very nature.

. . .
You’re friend hasn't obviously been able to create a viable enough business to pay much in taxes, let alone suffer from the increased tax burden on excess profits. If he is incorporated, his wage comes out corporate pretax.



1. I don't believe you. Like I said - a picture and a verified resume would end much of the debate.
2. I'd love to have you say that to my friend in person so that your theory could meet his application. I wrote that he makes 8% on every dollar billed and from that you conjure that he doesn't pay much in taxes? Hah! Nice. You must have been one hell of a Fortune 200 executive.

Lord lord lord.

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Re: Corp taxes to be lowered, replaced by national sales tax

Unread postby diemos » Sun 21 Nov 2010, 14:29:58

$this->bbcode_second_pass_quote('Expatriot', '
')1. I don't believe you. Like I said - a picture and a verified resume would end much of the debate.


You first.
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Re: Corp taxes to be lowered, replaced by national sales tax

Unread postby rangerone314 » Sun 21 Nov 2010, 14:39:51

$this->bbcode_second_pass_quote('dsula', '')$this->bbcode_second_pass_quote('Serial_Worrier', 'Y')ou realize that corporations don't pay taxes? Whatever rate you tax them at, they simply build it into their prices. Only customers pay taxes.

wow, that much stupidity got to hurt. how many painkiller pills do you need a day?

Serial_Worrier is probably mostly right, but how true that is depends on the elasticity of demand. If the demand curve is inelastic, that statement would tend to be true.
An ideology is by definition not a search for TRUTH-but a search for PROOF that its point of view is right

Equals barter and negotiate-people with power just take

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Re: Corp taxes to be lowered, replaced by national sales tax

Unread postby rangerone314 » Sun 21 Nov 2010, 14:45:09

$this->bbcode_second_pass_quote('Lore', '')$this->bbcode_second_pass_quote('Serial_Worrier', 'I')f I'm a corporation and you increase my tax by 5%, I increase my prices on all products by 5%. What about that you don't get? It doesn't hurt me competitively, because all my competitors will raise their prices by 5%. So by increasing corporate income tax you hurt the consumers. If you want to really hurt the fat-cats, increase the top personal income tax rate. Good luck with that.


But you see, in a supposedly free market system, it doesn’t work that way. Your competitor may not choose to raise their prices at all and absorb the cost in an attempt at taking away the limited business from their rival. In fact presently, the reason inflation is so low while commodity prices are accelerated upwards, is for just this reason. Limited demand does not tolerate increases in prices.

Much of what is produced and/or sold in this country is a product of oligopolies, which is between free market & monopolies in their behavior. If the price of coke goes up 10 cents a bottle, it is likely that pepsi will also go up.

We don't have a free market system... between government tinkering (both to hurt small business and help specific large corporations with no-bid contracts and subsidies) and monopolies and oligopolies, what we have is FAR from a free market system.

And the arch conservative's who spout market fundamentalist ideology are as hypocritical as the pharisees in the New Testament. I'd like to know where no bid contracts with Katrina and Iraq for KBR etc fit into Adam Smith's construct?
An ideology is by definition not a search for TRUTH-but a search for PROOF that its point of view is right

Equals barter and negotiate-people with power just take

You cant defend freedom by eliminating it-unknown

Our elected reps should wear sponsor patches on their suits so we know who they represent-like Nascar-Roy
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Re: Corp taxes to be lowered, replaced by national sales tax

Unread postby diemos » Sun 21 Nov 2010, 14:56:10

$this->bbcode_second_pass_quote('Serial_Worrier', 'Y')ou realize that corporations don't pay taxes? Whatever rate you tax them at, they simply build it into their prices. Only customers pay taxes.


That's a common meme that floats around but you do realize that it can just as easily be applied to individuals?

I don't pay any taxes because I just pass those costs on to my employer. Only my employer pays taxes. :lol:

And, as things are currently structured, my employer pays most of my taxes before I ever see a dime of money. If I get paid X what difference does it make to me if X = 50% of 2X or 1% of 100X.

In the end, when all is said and done, what matters is the fraction of productive activity that the government is diverting to it's own purposes. Figuring out exactly who is having to make do with less to support that is not a well defined concept.
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Re: Corp taxes to be lowered, replaced by national sales tax

Unread postby dsula » Sun 21 Nov 2010, 15:05:43

$this->bbcode_second_pass_quote('diemos', 'I')n the end, when all is said and done, what matters is the fraction of productive activity that the government is diverting to it's own purposes. Figuring out exactly who is having to make do with less to support that is not a well defined concept.

Finally somebody with some sense. Thank you.
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Re: Corp taxes to be lowered, replaced by national sales tax

Unread postby Lore » Sun 21 Nov 2010, 15:43:59

$this->bbcode_second_pass_quote('Expatriot', '')$this->bbcode_second_pass_quote('Lore', 'I')’ve often had to wrestle with pricing issues of this very nature.

. . .
You’re friend hasn't obviously been able to create a viable enough business to pay much in taxes, let alone suffer from the increased tax burden on excess profits. If he is incorporated, his wage comes out corporate pretax.



1. I don't believe you. Like I said - a picture and a verified resume would end much of the debate.
2. I'd love to have you say that to my friend in person so that your theory could meet his application. I wrote that he makes 8% on every dollar billed and from that you conjure that he doesn't pay much in taxes? Hah! Nice. You must have been one hell of a Fortune 200 executive.

Lord lord lord.

The Internet, a wonderful thing.



Why am I not surprised. People often deny facts that don't support their preconceived notions. Actually no one should believe you since your background is really that of an acquaintance.

You're friend must not expense out much either and if he is a corporation showing 8% taxable income to the government. He needs a better accountant.

For example, if he filed a taxable corporate income of $120,000 he would be paying the graduated marginal tax rate of $22,250 + 39% of the amount over 100,000.

While, if he invested in new equipment for let‘s say $20,000 pretax, he would not only have the depreciation, but his corporate tax rate would now be $13,750 + 34% of the amount over 75,000.

Now, if he is complaining about how much he personally makes, then he should have the corporation increase his salary. That would also reduce the corporate taxable income, but then of course he would have to pay for it in his personal tax files.

This illustrates how and why governments force corporations to invest. The problem is large corporations and their investors are not investing those pretax dollars here in the U.S., but overseas while still attempting to sell those goods back here contributing to our imbalance of trade.
Last edited by Lore on Sun 21 Nov 2010, 16:03:34, edited 2 times in total.
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Re: Corp taxes to be lowered, replaced by national sales tax

Unread postby Ludi » Sun 21 Nov 2010, 15:44:54

$this->bbcode_second_pass_quote('diemos', '')$this->bbcode_second_pass_quote('Expatriot', '
')1. I don't believe you. Like I said - a picture and a verified resume would end much of the debate.


You first.



How could you verify a picture and a resume on the internet? Could be anyone's picture or resume.

8O
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Re: Corp taxes to be lowered, replaced by national sales tax

Unread postby dissident » Sun 21 Nov 2010, 16:24:58

This "Expatriot" was the clown arguing that the tropical Hadley circulation cannot possibly get wider in latitude since the tropics are a geographic construct. Now he is trying to browbeat Lore on the subject of corporate taxation.

Here's an example of why this nitwit is totally and utterly wrong. When the GST was introduced in Canada in the early 1990s it was claimed that prices for big ticket items such as automobiles would go down since the old manufacturing tax would now be applied as a VAT. Guess what, there was no reduction in prices. The corporations did not have any incentive to pass on the savings of the eliminated manufacturing tax (whether 100% or not) and the GST was the "Government's Fault (TM)". You have a problem with paying more, then go complain to your elected representative, you commie.

How much the corporations howled for the VAT demonstrated the fact that they could not fully pass on the non-VAT taxes to the consumers. There really is such a thing as the market place and competition.

Here is a rant from a right-winger who gets the basic concept that "Expatriot" is denying: link
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Re: Corp taxes to be lowered, replaced by national sales tax

Unread postby rangerone314 » Sun 21 Nov 2010, 20:37:41

What needs to be done is to keep the rich from offshoring their money AND jobs. I say the time has come for protectionism.

We should pull our military back from the Middle East, invest massively in alternative energy... be it solar or thorium nuclear, put tariffs on foreign goods and stop outsourcing.

If there is to be a national sales tax, then there should be a maximum income, just like there is a minimum wage now.
An ideology is by definition not a search for TRUTH-but a search for PROOF that its point of view is right

Equals barter and negotiate-people with power just take

You cant defend freedom by eliminating it-unknown

Our elected reps should wear sponsor patches on their suits so we know who they represent-like Nascar-Roy
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Re: Corp taxes to be lowered, replaced by national sales tax

Unread postby americandream » Sun 21 Nov 2010, 21:30:47

$this->bbcode_second_pass_quote('rangerone314', 'W')hat needs to be done is to keep the rich from offshoring their money AND jobs. I say the time has come for protectionism.

We should pull our military back from the Middle East, invest massively in alternative energy... be it solar or thorium nuclear, put tariffs on foreign goods and stop outsourcing.

If there is to be a national sales tax, then there should be a maximum income, just like there is a minimum wage now.


How ya gonna do it? They own the media, your mind, the politicians and the military. Most insidiously, they own your mind.
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Re: Corp taxes to be lowered, replaced by national sales tax

Unread postby steam_cannon » Sun 21 Nov 2010, 22:14:51

$this->bbcode_second_pass_quote('Ludi', '')$this->bbcode_second_pass_quote('diemos', '')$this->bbcode_second_pass_quote('Expatriot', '
')1. I don't believe you. Like I said - a picture and a verified resume would end much of the debate.


You first.



How could you verify a picture and a resume on the internet? Could be anyone's picture or resume.

8O

That's the classic fallacies "ad hominem" and "Appeal to Authority". Typical of trolling and bad netiquette.
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Re: Corp taxes to be lowered, replaced by national sales tax

Unread postby careinke » Sun 21 Nov 2010, 23:14:17

$this->bbcode_second_pass_quote('diemos', '')$this->bbcode_second_pass_quote('Serial_Worrier', 'Y')ou realize that corporations don't pay taxes? Whatever rate you tax them at, they simply build it into their prices. Only customers pay taxes.


That's a common meme that floats around but you do realize that it can just as easily be applied to individuals?

I don't pay any taxes because I just pass those costs on to my employer. Only my employer pays taxes. :lol:

And, as things are currently structured, my employer pays most of my taxes before I ever see a dime of money. If I get paid X what difference does it make to me if X = 50% of 2X or 1% of 100X.

In the end, when all is said and done, what matters is the fraction of productive activity that the government is diverting to it's own purposes. Figuring out exactly who is having to make do with less to support that is not a well defined concept.


You make some good points. I like to evaluate each kind of tax by using extremes and then predicting the outcomes.

Some examples:

1. Eliminate all taxes except for those evil corporations. Lets tax them enough to make them pay for the entire Federal budget. Result price of goods would have to go up resulting in an extremely regressive tax hurting the poor the most. BTW I would actually support this tax as it is actually a consumption tax.

2. Only tax individuals using an Income tax. Tax them at a high enough rate to pay for the entire Federal Budget. Results: This one seems to be doable. Total income in the us about 12 trillion a year. Govt expenses about 4 trillion this year. So a flat 30% would cover it (with no exemptions). Of course you could also make the wealthier pay a higher percentage. Using just an income tax would also give corporations an incentive to base their operations in the US rather than moving overseas.

3. "Fair tax" Basically a sales tax on all new goods and services (at 23 or 30% depending on how you calculate it). Provides a "prebate" to all covering your sales tax up to the poverty level. Results: This one has actually been studied and is my favorite choice. It, like the Income tax alone is workable. I like it because it taxes consumption while completely untaxing the poor. It also gives the same advantage to corporations as a Income Tax only scheme. Further since the tax is imposed on all new purchases, it in effect adds a tariff on all imported goods. Finally, it encourages people to buy used.
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Re: Corp taxes to be lowered, replaced by national sales tax

Unread postby Serial_Worrier » Sun 21 Nov 2010, 23:24:13

$this->bbcode_second_pass_quote('dsula', 'N')o, if you are a smart corporation and I'm raising your taxes YOU WILL MOVE, to a place where you don't have that much taxes. Or you go OUT OF BUSINESS, because you're competing with companies that pay a reasonable tax rates (pretty much everywhere on the planet except the US).
If your world only consists of the US then I agree with you. I can raise your taxes, so to give the money back to consumers in form of welfare. OR I can lower your taxes, lower the price of your product and make it affordable for the consumer to buy it WITHOUT welfare. AND I would also save a lot of burocracy in the process, leading to a smaller government overhead, reducing taxes even further, which again benefits the consumers. Wow, what a train of thought. Turns out that lower taxes seems to be best for everybody, Who would have thought?


Which is what blue-state corporations are doing every day. Does anyone wonder why CA is facing a catastrophic debt situation?
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