Senators Propose Big Corporate Tax Cut (from 35 to 24, around OECD average)

[thriftyandboringinohio]

Re: Senators Propose Big Corporate Tax Cut (from 35 to 24, around OECD average)

..The point is that those taxes come from somewhere. Where? Corporate profits, right? Where do corporate profits go that aren't spent on taxes? They either flow to shareholders (as dividends) or back into the business. If they go to shareholders, the value of the stock should increase as the dividend rate goes up...

If they go back into the business, how are they spent? More employees? Higher wages for better-performing employees? More capital spending?..

I'm quite familiar with the old saw. I still have a question. Why are individuals and businesses DIFFERENT in their ability to pass along taxes to others?

[WDCRob]

Re: Senators Propose Big Corporate Tax Cut (from 35 to 24, around OECD average)

Yes, after the 30-year rape of Corporate America by the populist masses what we need is to provide relief to the poor corporations.

According to the World Bank and PricewaterhouseCoopers, the United States’ total corporate tax burden ranks 76th of over 100 countries. [World Bank]

In the last seven years, the U.S. has collected an average of 2.4 percent of its GDP in corporate taxes—less than the average 3.4 percent collected by other industrialized nations. If laws remain the same, U.S. corporate taxes will be only 1.9 percent of GDP in less than ten years. [U.S. Treasury Department]

[thriftyandboringinohio]

Re: Senators Propose Big Corporate Tax Cut (from 35 to 24, around OECD average)

The point is -- few corporations feel the full burden of the corporate tax rate. Many pay no taxes, others pay very low taxes. That's not a controversial statement, is it?

Not controversial in my book. Damn few corporations pay anywhere near the nominal tax rate, as established clearly by thoughtful detailed research repeated by many people, well documented, widely available.

A much lower tax rate that actually gets paid might result in higher net taxes on business.

The whining and wailing that US corporations can't compete because of our high nominal corp tax rate is a farse, or an excuse, or a red herring...