On 08/04/2011 9:00 PM, Lil Abner wrote:
On 4/8/2011 12:06 PM, Frogwatch wrote:
A corp makes a gadget and needs 10% profit. They get taxed at 20% on
that 10% profit (or .2*.1=.02) so they simply increase their price by .
02. Guess who pays that .02? The consumer does. Corporate income
tax is simply a way to make personal income tax higher without making
it so obvious. The only people it benefits are accountants.
This is silly circle reasoning.
You can reason a rat has more rights than you if you want to be
illogical.a corporation is a person: so they say and the courts agree.
Most Corporations pay little real tax. Not one pays the cited rates.
Most pay no tax to the US.
They make their mony in America on Americans but pay no taxes to support
the Republic.
They spend tremendous amounts of money to buy Washington. Maybe you
count that as their contribution.

Actually not. His theory is right. If a company can't raise the
prices, it has to pay less in wages if taxes are higher. Or investment
ceases.

Take dividends, taxed twice. Say 30% at the company and 30% at the
receiver. $1.00 profit gets taxed, 70 cents, then taxed again at the
investor for 49 cents after tax. Raise taxes 1%, that is 4% off the net
return. So investors want 8% more to cover the after tax loss. Why
invest if you think your returns will get screwed by taxes?

Hint, you don't and jobs dry up and people will accept much less. Sound
familiar? 1% in tax for a 8% hit.

It is why so many companies are dog crap investments. You make less
than 50 cents on the dollar profit as an investor, why not just buy
gold. No union issues, no greedy government risks, get taxed once on
the favorable capital gains rate for gold that can't go wrong. Yep,
most companies on the market are not worth their value.

And why no one invests in new companies (and jobs) unless they properly
reflect risk and rate of returns are well above real inflation plus taxes.

Yep, government has been living on borrowed time since 2008 and the
longer they screw around the worse it will get.