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Is this free market capitalism???

darkkermit
Posts: 11,204
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9/1/2011 9:08:31 AM
Posted: 5 years ago
As Milton Friedman stated "You can't tax corporations, you can only tax people". The corporate tax in America is actually higher than most developed nations. Also, how is this information important in any way?
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Danielle
Posts: 21,330
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9/1/2011 10:03:38 AM
Posted: 5 years ago
No because there are taxes...?

Random tidbit: My stepdad's a CFO and told me yesterday that the government is going to give tax breaks to companies who pay their employees more. Interesting.
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Tim_Spin
Posts: 446
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9/1/2011 12:20:22 PM
Posted: 5 years ago
At 9/1/2011 10:03:38 AM, Danielle wrote:
No because there are taxes...?
Astonished, the talent agent asks the man what him and his family call their act.The man responds, "The Aristocrats!"
RoyLatham
Posts: 4,488
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9/1/2011 5:15:16 PM
Posted: 5 years ago
The article says that 25 of the 100 companies paid more to their CEO than to taxes. It would be nice to also know how many of the companies made a profit. The article doesn't say.

The 60,000+ pages of the tax code is mostly loopholes. (I wrote a long blog post on this subject recently.) Many people wonder why Wall Street gave a lot more more money to Obama than to McCain. They get repaid by Democrats. General Electric, the most prominent Obama supporter, paid no taxes on $14.2 billion in earnings, of which $5 billion was in the US. Congressman Charley Rangel, then a committee chair, granted GE the loopholes they needed.

The solution is to enact the flat tax. The tax code is so ridiculous that even some Democrats are coming around to that viewpoint.
Wnope
Posts: 6,924
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9/2/2011 6:39:17 PM
Posted: 5 years ago
At 9/1/2011 5:15:16 PM, RoyLatham wrote:
The article says that 25 of the 100 companies paid more to their CEO than to taxes. It would be nice to also know how many of the companies made a profit. The article doesn't say.

The 60,000+ pages of the tax code is mostly loopholes. (I wrote a long blog post on this subject recently.) Many people wonder why Wall Street gave a lot more more money to Obama than to McCain. They get repaid by Democrats. General Electric, the most prominent Obama supporter, paid no taxes on $14.2 billion in earnings, of which $5 billion was in the US. Congressman Charley Rangel, then a committee chair, granted GE the loopholes they needed.

The solution is to enact the flat tax. The tax code is so ridiculous that even some Democrats are coming around to that viewpoint.

How would a flat tax solve the problem of tax loopholes? You'd just get a new set of loopholes using tax exemptions and by muddying around with what counts as taxable income. Would there be no such thing as deductions for business and/or operating expenses? Would those under the poverty line pay the same proportion of income as millionaires?

I can see it closing a certain class of loopholes, but it would open up another one. The greatest accomplishment would be creating an implicitly regressive taxation rate by ignoring the decreasing marginal value of income for workers.
RoyLatham
Posts: 4,488
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9/2/2011 11:35:08 PM
Posted: 5 years ago
At 9/2/2011 6:39:17 PM, Wnope wrote:
How would a flat tax solve the problem of tax loopholes? You'd just get a new set of loopholes using tax exemptions and by muddying around with what counts as taxable income. Would there be no such thing as deductions for business and/or operating expenses? Would those under the poverty line pay the same proportion of income as millionaires?

The flat tax has a fairly large standard deduction, around $10K per person -- $40K for a family of four. The poverty line is around $25K. Above the deductible, there are no exemptions at all, and it's a flat 18%. The tax is based upon business profits, but there are stock exchange rules on how profits are computed.

Is it possible to muck the system up by adding exemptions? Of course it's possible, but there is no system that cannot be screwed up. However, GE would be back paying taxes, the economy saves $500 billion it now spends on tax preparation, and business decisions would be based up true economics rather than chasing loopholes.

It's a fantasy to suppose that if the tax rate were 90%, or whatever, that the money would actually be collected. Money would flee the country rather than face confiscation.