Corporations and Taxes

Your just shifting the tax around. Some corps will benefit (if you can sell in markets that don't have to pay that tax) and some will hurt (since they will have to subsidize the former). When the customer walks into the store to buy a car, they don't care if it costs 30k (20k car + 10k corporate taxes) or 30k (20k car+10k of "fair" tax).Personally as a rich guy, I am all in favor of the fair tax. A 30% sales tax is less than my income tax rate and I wouldn't be spending all of my income. It would suck that all my savings are now worth 30% less though...

sub3over40 wrote:

Corporations don't pay taxes....you do. The costs of taxation are built into every product you buy and every service you purchase. The fair tax ( National Consumption Tax with elimination of personal and corporate income taxes) is the only way to fix this problem. It a great idea so there is no way the government will ever do it.

I never said that google hires people to sit around. That was some other nut job. Google hire people to figure out how to avoid paying taxes.

Kabingbang TAX wrote:

You would hire more people to lower taxable income unless the tax rate was 100%. In other words Google is worse off hiring somebody who does not produce. Spending more money to lower taxable income on a project that won't have future benifit is a losing situation.

governments tax everything the can.

asdfasdfasdasdfasdfasdfa wrote:

Obviously I was way too subtle for you. To get the tax rate under 5%, Google hires lawyers and accountants. With no corporate tax, those people would be not be working at Google. Or if that is too still too complex for you, if there was no personal income tax, how many people wold HR Block employ?

The piece of the big picture puzzle you are missing is productivity.

In case your an idiot, that comment about the tax code promoting employment was sarcastic. Despite what you might hear on the news, creating jobs is not inherently good. But if corporate taxes are bad, aren't personal ones worse? After all a dozen attorneys/accountants can take care of a 40k person company which has to be more efficient than having all 40k people fill out forms. All taxes suck out productivity. And they all suck to pay. But living in a society without taxes is far worse. The problem without corporate taxes is that they are too easy to dodge and the penalty isn't high enough. Make it a mandatory 5 year prison sentence for the CEO and CFO and I bet the creativity level of tax avoidance would drop like a rock.

Kevin52 wrote:

asdfasdfasdasdfasdfasdfa wrote:

Obviously I was way too subtle for you. To get the tax rate under 5%, Google hires lawyers and accountants. With no corporate tax, those people would be not be working at Google. Or if that is too still too complex for you, if there was no personal income tax, how many people wold HR Block employ?

The piece of the big picture puzzle you are missing is productivity.

NoFatty wrote:

I've often thought about creating a religion as a tax shelter for myself. They get to avoid real estate taxes too, which changes the economics of that sort of investment pretty radically.

I've thought about turning my house into a church if the property taxes get too high. I would get a small studio or RV to use as my official residence. Does this dodge property taxes effectively?

I could create a church whose members are my family. Isn't that what being Jewish is like?

Once again-- this is plain old wrong.

I start a company to clean houses. My company gets 10$ an hour for every employee I send to clean a house. It costs my company exactly $10 and hour to hire that employee to clean the house. My profit is exactly zero but yet I can hire thousands of workers.

Once again-- you are plain old wrong. In the above example, did I mention that 50 cents of my company's $10 an hour cost goes to pay my salary? I will still seek to expand my company as much as possible even though the company doesn't make a profit.

The gov't does not need to tax anyone at all. The gov't does not tax to generate revenue-- they tax to control inflation. There is a connection between taxes and services via inflation.

The fair tax would also catch the underground economy.....illegal aliens. drug dealer, mafia...they pay no taxes not but they all buy things so we would get more revenue. Plus individuals and corporation would stop wasting money to hire lawyers and accountants to avoid taxes...The power of these lobbies probably make it a pipe dream.

The fair tax would also drive more of the economy underground. When you can save 30%+, that is a lot more incentive to cheat. Might be a net win but I doubt until it was implemented and all the details worked out (if I import something from a foreign country do I have to pay tax? What if the good being imported is used)?And the fact that most people would have a huge tax increase isn't exactly a plus. And yes most people would pay more since right now the top 20% pay most of the taxes. If you lower the rate, more people would have to pay to maintain the current income. And yeah it would be great to shrink government in a lot of areas. But that is independent of how the revenue is generated.

sub3over40 wrote:

The fair tax would also catch the underground economy.....illegal aliens. drug dealer, mafia...they pay no taxes not but they all buy things so we would get more revenue. Plus individuals and corporation would stop wasting money to hire lawyers and accountants to avoid taxes...The power of these lobbies probably make it a pipe dream.