Thread: Histrorically accurate?

Originally Posted by LAM

tax breaks for us corps do not spur job creation if they did we would not be looking at 10% unemployment while US corps are sitting on almost 2T of profits from 2010.

this one of many reasons the radical budget deficit reducing plan by Paul Ryan is bunk.

After decades of claims about reduced corporate taxes spurring on job growth and nothing to show for it you can't help but wonder how people still believe it.


Probably a little too much

^This guy

[QUOTE=LAM;2343128]we didn't use to have a tax problem decades ago but now we do.

the corporate tax rate is the lowest it's ever been in like 65 years. last year taxes from corporations only accounted for less than 5% of GDP. the year or two before they accounted for about 1-2% of GDP. with corporations paying less taxes more of the burden falls on taxes collected from income from wages.

I know nothing of Paul Ryan, but, one thing I've learned from being a member of IM is that it includes a wide variety of people well versed on a wide variety of subjects. Therefor, your opinion is of interest. I'm very surprised that you link taxes with corporate GDP (Gross Domestic Product). How does this equate with corporations paying only 5% taxes? They are two very different things, or maybe I've missed something. I own an Limited Liability Company and I assure you, I pay more than 30% of my gross income annually to the federal government, all paid out quarterly. This factors in all legal "write offs," and the percentage of allowed write-offs is very strict. To repeat: write offs included, I pay more than 30% of my annual gross income by writing four checks a year, out of my own personal f-ing checking account. I know a great number of people who have been financially successful and they, too, pay 25-35% of their income (usually quarterly) to the federal government. I read often of the wealthy not paying taxes, but this is an anomaly in my experience. Maybe corporations are somehow different than a LLC, that's why I'm posing the question. The only exceptions of which I know are a very few people who inherited their wealth via tax-free bonds. They exist, I don't contest it. But, from what I've read, 1% of the American population pays more than 40% of all taxes collected by the federal government. I've also read that 45% of the population pays no federal tax at all. An illustration: In a community of one million people, 450,000 people (the welfare-illegals-gray-market folks) pay no tax at all. The working people, 450,000 of them, carry 59% of the tax burden. The wealthy 10,000 (some relentless workers, some corporate punks) pay the remaining 41% of the total collected federal tax. Does this strike anyone as fair and equitable? I've pasted a link below that addresses the subject.

James Pethokoukis | Analysis & Opinion | Reuters.com

Originally Posted by 2tomlinson

Maybe corporations are somehow different than a LLC, that's why I'm posing the question. The only exceptions of which I know are a very few people who inherited their wealth via tax-free bonds. They exist, I don't contest it. But, from what I've read, 1% of the American population pays more than 40% of all taxes collected by the federal government. I've also read that 45% of the population pays no federal tax at all. An illustration: In a community of one million people, 450,000 people (the welfare-illegals-gray-market folks) pay no tax at all. The working people, 450,000 of them, carry 59% of the tax burden. The wealthy 10,000 (some relentless workers, some corporate punks) pay the remaining 41% of the total collected federal tax. Does this strike anyone as fair and equitable? I've pasted a link below that addresses the subject.

profits from small businesses and big corporations are night and day. if you check out the data on the SBA website it contains all the data on profits from small businesses (not firms) in the US. most barely turn a profit.

the higher up the income ladder the less income is derived from "wages" and more from stocks, so they get taxed at the 15% flat rate for capital gains. they also have multiple revenue streams from various investment accounts, etc.

most states have several different tax rates for income, the lower the median income of the state the less tax rates there seem to be. some states also do not collect income tax so it is only paid at the federal level.

the federal tax code for business is designed to benefit big corporations. this is how company's with multi-billion dollar annual incomes end of with tax credits from the IRS. small business just don't generate the revenues to benefit from them.

payroll taxes have been decreased this also shifts more of the tax burden on those at the bottom of the wage ladder.

at the lower quintiles all of the income comes in the form of wages, there is only one source of revenue. many also forget to factor in inflation, it is constant and cumulative. those at the bottom of the income ladder are greatly effected by inflation while those at the top are invisible to it. a smaller percentage of the annual income goes to living expenses, etc. AND their total income from all sources is many times the rate of inflation. in just the past decade inflation has increased 30%. so everyone that has not had average annual increases of 3% are making less money, via reduced purchasing power. those at the top see incomes increase several hundred percent. also they can benefit from inflation by investing monies in higher yield bonds, preferred stock shares or invest overseas.

monetary policy from the FRB is used to increase inflation as it benefits those at the top while keeping those at the bottom in a constant state of debt or near debt.

the collection of taxes at the federal level is important as to how it correlates with the GDP and any account deficits regardless of their cause. those at the bottom of the income ladder pay no federal income tax, it gets refunded to them this is roughly 50% of the US population. so taxes from their income really only benefits local and state governments. with reduced tax receipts at the federal level there is insufficient monies collected so deficits carry-over from year to year, etc. so high unemployment and reduced property taxes, stagnate/decreasing wages even in low paying labor jobs reduces tax receipts at the state level. this is one of the reasons why the US maintaining a balanced budget year after year is nothing more than a fantasy, it just needs to be controlled. the reduction of entitlements to pay down the deficit nothing but a short-term temporary fix.

sorry for jumping around a bit but I'm watching a movie and talking on the phone while typing this.