US Politics : Open Borders (a continuation)

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Kieppie

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Corporate income tax:
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Hahaha
Some more examples of you posting stuff you don't understand the underlying issues? :thumbsup:
Perhaps go look up previous corporate tax rates and compare it to your little graph...

National income from corporate income taxes are a quarter of what they were in the 60's while corporate profits are about 7 times higher than they were in the 60's (after adjusting for inflation).
 
National income from corporate income taxes are a quarter of what they were in the 60's while corporate profits are about 7 times higher than they were in the 60's (after adjusting for inflation).
So what? What is wrong with corporate profits? You actually need that to pay for all the boomers' pensions, which is invested in corporate shares.

Weak commie, "profit bad" take.
 
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National income from corporate income taxes are a quarter of what they were in the 60's while corporate profits are about 7 times higher than they were in the 60's (after adjusting for inflation).
Yes and did you notice that the revenue share from corporations were steadily dropping despite having a high corp tax during all that time?
Meaning the drop in their tax, which happened only recently, played no part in that.
Likewise the drop in their tax did not result in any noticeable spike in their profits.

More importantly the structure of corporations changed massively in recent years with the advent of the internet which facilitated a increase in profitability.
That isn't true for all types of corporations though, so an tax increase affect certain industries much more than others.
Also spike you see in your graph in 2020 is not due to tax decreases, but rather due to Covid restrictions which closed small mom & pop stores and other small businesses, but allowed large corps to remain open.
Which, as I mentioned earlier, was arguably the single biggest wealth transfer in US history.

All this aside we're now in a global market and if you don't make it attractive enough for a company to stay in the US they'll simply move their HQ to a place like Ireland for example.
Unless you then penalise them for doing so.
 
Yes and did you notice that the revenue share from corporations were steadily dropping despite having a high corp tax during all that time?
Meaning the drop in their tax, which happened only recently, played no part in that.
Likewise the drop in their tax did not result in any noticeable spike in their profits.

More importantly the structure of corporations changed massively in recent years with the advent of the internet which facilitated a increase in profitability.
That isn't true for all types of corporations though, so an tax increase affect certain industries much more than others.
Also spike you see in your graph in 2020 is not due to tax decreases, but rather due to Covid restrictions which closed small mom & pop stores and other small businesses, but allowed large corps to remain open.
Which, as I mentioned earlier, was arguably the single biggest wealth transfer in US history.

All this aside we're now in a global market and if you don't make it attractive enough for a company to stay in the US they'll simply move their HQ to a place like Ireland for example.
Unless you then penalise them for doing so.

At least 55 of the largest corporations in America paid no federal corporate income taxes on their 2020 profits, according to the Institute on Taxation and Economic Policy.

"There’s a bucket of corporate tax breaks that are deliberately in the tax code … . And overall, they cost the federal government roughly $180 billion each year. And for comparison, the corporate tax brings in about $370 billion of revenue a year,” Chye-Ching Huang, executive director of the NYU Tax Law Center

If the tax rate was 35% rather than the 21% due to Trump, and companies didn't get these tax breaks, they would have gotten almost a trillion dollars in revenue instead of $370 billion.

Effective corporate tax rate is at an all time low. Due to tax breaks that enable corporations to get away with paying much less than 21%.

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The US government should be getting more than triple what they are now.

And don't tell me corporations can't afford it because that's absolute bull.

Companies like Amazon get away with paying only 5% tax while posting profits in the hundreds of billions.
 
Who cares? The funniest thing is someone claiming that the Bee isn't funny.
A sense of humour seems to be in short supply amongst some people

Looks like they are stepping up just a little...

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At least 55 of the largest corporations in America paid no federal corporate income taxes on their 2020 profits, according to the Institute on Taxation and Economic Policy.

"There’s a bucket of corporate tax breaks that are deliberately in the tax code … . And overall, they cost the federal government roughly $180 billion each year. And for comparison, the corporate tax brings in about $370 billion of revenue a year,” Chye-Ching Huang, executive director of the NYU Tax Law Center

If the tax rate was 35% rather than the 21% due to Trump, and companies didn't get these tax breaks, they would have gotten almost a trillion dollars in revenue instead of $370 billion.
If you paid no taxes it simply means you made no profit and there could be various reasons for this.
No you won't get $1T companies will just go elsewhere.

Effective corporate tax rate is at an all time low. Due to tax breaks that enable corporations to get away with paying much less than 21%.

effectiveus.png
Getting away with paying less than the marked tax rate is a completely different issue.
It should be obvious that some other factor is at play seeing a downward trend in "effective" tax rate while the normal tax rate remains consistent.

The US government should be getting more than triple what they are now.
The government is only entitled to the tax that is in the law. If companies are breaking laws then fine them for that.
Or make changes to specific laws or tax breaks, not a blanket increase.

And don't tell me corporations can't afford it because that's absolute bull.
Companies like Amazon get away with paying only 5% tax while posting profits in the hundreds of billions.
Exactly my point. Companies "like Amazon"... There are many companies not like Amazon who are much more impacted by tax fluctuations than they are.
There should be a progressive tax scale for companies, perhaps there actually is.

Amazon taxes are low partly because they use all kinds of creative accounting or foreign holdings to shift profit around. Much like Apple etc. also does.
Disney for example did something similar in offsetting profit in one division against losses in another. They are currently being sued for this by the way.

Either way it's not because Trump dropped the tax to 21% that you saw these profit spikes. It was due to Covid specifically benefiting companies like Amazon.
If anything having a competitive corporate tax rate is more beneficial for a country in enticing companies to set up shop there.

Biden already signed a minimum corporate tax into law as part of his bloated, ironically named omnibus "Inflation Reduction Act" last year.
Many experts warned of the impact this will have and called it a terrible policy, in part because companies that have the most stock compensation will experience more substantial effects.
It also harm manufacturing companies more than say tech companies, who already have higher profit margins.
 
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