[DeTomaso] NPC - Corporate taxes

Mon Nov 8 18:58:52 EST 2010

Ok Larry I'll take on your post. 

The first point I would make though is the big picture issue of corporations being taxed at all. Corporations provide goods and services and they charge a price based on the cost of production plus x% profit. Any taxes they pay just add to the cost side and thus get passed on to the consumer, so in reality regardless of tax rates we pay those taxes in the form of higher prices for said goods and services. 

Now to specifically address your post. We are in a very different world today and so the tax policies of the 50's and 60's are totally irrelevant. 

After WWII the USA enjoyed a huge competitive advantage in the world. Virtually every other industrialized country had been devastated by the war and it literally took decades for them to rebuild their infrastructure and return their industrial capacity to levels just capable of meeting their internal demand. The USA on the other hand had tons of unscathed capacity from the war effort that we were able to easily convert to supply domestic as well as global demand. This allowed politicians the luxury of taxing / over taxing corporations (and thus us, see above) to pay for "vote buying" programs knowing full well that their policies were unsustainable. Today we live in a very different world. We no longer have the advantage of being the only country capable of supplying the world and thus the government no longer has the luxury of taxing our corporations at higher rates than the governments of our competitors.

To look back and long for "the good old days" is pointless. We need to look at the world as it exists today and craft policies that make us more competitive in that world.

Gray

-----Original Message-----
From: detomaso-bounces at realbig.com [mailto:detomaso-bounces at realbig.com] On Behalf Of Larry Finch
Sent: Monday, November 08, 2010 4:01 PM
To: kenn_green at yahoo.com; doug351c at gmail.com; detomaso at realbig.com; chrisvkimball at msn.com; P6746 at aol.com
Subject: Re: [DeTomaso] NPC - Corporate taxes

 While tax RATES are an interesting portion of the issue, I haven't seen any of my detractors contest
my post which pointed out the actual share of overall US taxes received that are PAID by corporations has
been lessening while the individuals' portion has been increasing.

But those figures aren't what my detractors want to learn about, or apparently, comprehend.

Perhaps the corporate-politico-lobbyist machine has added enough loopholes and write-offs in recent decades to
give the "high taxes are killing us" corporate crocodile tears apparent validity to those not willing to look at the
bottom line of who is now actually PAYING what?

And just for the record, just as both sides of the aisle are in the pocket of the Wall Street-corporate machine, so too is the corporate-owned media.
They depend on advertising, not letters to the editor. They know who to side with, and despite the off-repeated 'liberal media' buzzword,
for the most part the media's agenda is not the Common Man's agenda.

Larry

P.S. - Ken, I'm still waiting to hear the details on the Civil War you alluded to in your recent post. Or did I infer something other than what you
          meant by your use of the word revolution? To me a revolution is an internal armed uprising against a government. You could have said
          it would be time for increased political action, time to propose and pass changes to the constitution, time for peaceful demonstrations to
          garner support for changes in laws and regulations. But you said revolution.
          Again, please provide the details of just what your revolution would entail.

-----Original Message-----
From: Ken Green <kenn_green at yahoo.com>
To: Doug Braun <doug351c at gmail.com>; fresnofinches at aol.com; Pantera List Serve <detomaso at realbig.com>; Christopher Kimball <chrisvkimball at msn.com>
Sent: Mon, Nov 8, 2010 10:49 am
Subject: Re: [DeTomaso] NPC - Corporate taxes

Darn it Chris, don't confuse the rhetoric with facts.  The liberal main stream media won't stand for it!

Ken

--- On Mon, 11/8/10, Christopher Kimball <chrisvkimball at msn.com> wrote:

From: Christopher Kimball <chrisvkimball at msn.com>
Subject: Re: [DeTomaso] NPC - Corporate taxes
To: "Doug Braun" <doug351c at gmail.com>, fresnofinches at aol.com, "Pantera List Serve" <detomaso at realbig.com>
Date: Monday, November 8, 2010, 9:59 AM

By the way, there was a response about corporate taxes versus personal taxes.  Corporate tax rates are as follows (2209 rates):   

75,000 to 100,000:         34% tax rate
100,000 to            335,000:         39% tax rate

So you'll notice, the tax rates are higher than individual tax rates.  It's true that many large corporations have years when they pay little or no taxes, but in many cases that's because they have carry-forward losses from previous years.  That, or they're getting subsidies from the Government for creating "green energy" products, that on their own wouldn't make a dime, but would instead lose money.  In fact, the head of our regional power company spoke at Rotary the other day, and when questioned, she had to admit that the wind power facilities they are operating would be a total money-losing proposition if it weren't for Federal subsidies.

Oh, and by the way, trust tax rates are even more egregious.  After only the first $11,200 of income, the rate is 35%, or in other words, the same as the top marginal individual rate.

Sincerely,

Chris 

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