Why do liberals not understand the corporate tax rate?

[jlick]

Taxes on net income have no effect on revenues or expenses. Revenues-expenses=net income. Then comes the corporate tax rate. I'm fine with a low tax rate as long as we have policies in place to ensure a tight labor market. Just correcting the misconceptions.

maybe not a direct effect, but if you are trying to increase your retained earnings, you would want lower taxes or a higher net income., right?

[Jrd86]

I don't think this is true. Even Goldman Sachs had released a forecast that preferred Biden being president, I believe due to the trade stuff.

Stocks dont like trade-wars. Trump was re-balancing our trade, and the stockmarket, away from globalism, by making it more Americacentric. Obviously big business would prefer to outsource for cheap labor, the same way they love the lotto program, and H1B visas. So that they can make record profits at the expense of the country and our middle class. However, the stockmarket has absolutely loved Trumps tax cuts, deregulation, and economic policies.

[DukeOfWoodBerry]

maybe not a direct effect, but if you are trying to increase your retained earnings, you would want lower taxes or a higher net income., right?

Yes but what can you do with retained earnings? A dividend, stock buyback, pay down debt, or try to reinvest it into the company (if there are opportunities.) The main thing it boils down to is less income for the owners of the company.

[backinbusiness]

I work in accounting an literally everyone in the office is a rep. We all had a good laugh about the Trump tax return “scandal”

People who have never worked in corporate finance or accounting are absolutely ignorant to these topics ans should be disregarded anytime they talk about taxes.

“Bbbbb Amazon paid NO Federal taxes on BILLIONS of revenues!!!!”
What about the billions spent on fixed assets? Depreciation of fixed assets not even once son.

I just can’t wait for the corporate overlords to start funneling money to democrats when section 754/100% bonus depreciation expires...then dems will claim “BUT JOBS!!!”

[Dan3582]

Transfer pricing is illegal when you used to manipulate the tax burden. Just need the IRS to crackdown. Of course big companies are always going to use loopholes, sometimes illegal. But taxes are determined after profit. Corporations charge the price that maximizes profit so it shouldn't be affected without illegal stuff like you're talking about.

Increased productivity hasn't been leading to increased wages over the past 40 or so years.

You're talking out of your arse. I can tell you've never work in accounting- spewing left-wing diatribes, ad-homien regurgitative talking points. You're clearly showing your ignorance on accounting. Firms don't charge prices to maximize profit, sounds good in theory, doesn't happen in the real world. Regarding to tying productivity to higher pay, that's an accounting fact. Greg Mankiw- Economics Department Chairman at Harvard and former CEA White House Chairman

https://gregmankiw.blogspot.com/2006...y-related.html

[J411]

Corporate tax rate isn't that big of a deal for major corporations. Its based on their net income which is what is left over after everything is done. Sure its nice to put it in the bank and build a warchest or increase the dividend which makes investors happy. But if your microsoft whether you put 25 billion in the bank this year or 20 billion isn't really that big of a deal.

The main ones affected by it are smaller companies.

For example guy owns a small corporation with 15 employees.

He pays himself a Salary of 150k which puts him in a high income tax bracket.

His corporation makes 100k in profit its taxed at 37% which leaves him with 63k. Then he takes the 63 as a disbursal from his company and gets to pay personal income tax on it dropping it well below 50k (not going to do actual math).

On other than with 27% he is left with 77k. Then gets to run it through his own personal finances and ends up getting more money. An extra 10k or so is a pretty nice benefit.

That said, its still not that big of a deal because most people don't take money from their company in this way. Usually they buy a "company car" with the 100k in profit and drive that as their personal car and save a personal car payment. Not saying that's what you should do. But its what most people do. In that situation you pay 0% taxes.

[dannyg1217]

Corporate tax rate isn't that big of a deal for major corporations. Its based on their net income which is what is left over after everything is done. Sure its nice to put it in the bank and build a warchest or increase the dividend which makes investors happy. But if your microsoft whether you put 25 billion in the bank this year or 20 billion isn't really that big of a deal.

The main ones affected by it are smaller companies.

For example guy owns a small corporation with 15 employees.

He pays himself a Salary of 150k which puts him in a high income tax bracket.

His corporation makes 100k in profit its taxed at 37% which leaves him with 63k. Then he takes the 63 as a disbursal from his company and gets to pay personal income tax on it dropping it well below 50k (not going to do actual math).

On other than with 27% he is left with 77k. Then gets to run it through his own personal finances and ends up getting more money. An extra 10k or so is a pretty nice benefit.

That said, its still not that big of a deal because most people don't take money from their company in this way. Usually they buy a "company car" with the 100k in profit and drive that as their personal car and save a personal car payment. Not saying that's what you should do. But its what most people do. In that situation you pay 0% taxes.

what, do you hear yourself, paying 37% vs, 27% isn't a big deal, feel free to donate 10% of your yearly income to the poor.

That's what chNges the profit margins, and investor interest in the company and will drive stock prices, it means a lot to them.

[sandaltan]

always hilarious to watch tradies with 10th grade educations talk about economics

[OPGenesis]

always hilarious to watch tradies with 10th grade educations talk about economics

Or fake lawyers who don't understand DUI laws.

Ohfffff.

As for the OP, if companies want to play this game with tax avoidance; let them move overseas; and whatever product they wish to export back into the country you're supposed to tariff the fuk out of them.

The tax cuts are irrelevant. The extra money goes back into financialization and quick profits over economic development.

[rhadam]

Lol psych major. Every retarded girl's major and you're like 35 but look 45.

Learn how to read financial statements and how taxes effect them. They come into play after net income, meaning they only effect what goes into retained earnings. For some reason you have some kind of misconception that you're intelligent when you have an average IQ at best.

I always get a kick out of dudes who don't lift, don't show their face, and try to talk chit about me, an actual Chad. Good times.

[OPGenesis]

Lol @ Duke roasting everybody over their IQ.

Shyts is mad geeky to be bragging about IQ, but don't act like you're some intellect when you reside somewhere in the middle of the bell curve.

It doesn't take a 210 level IQ to go to Investopedia and look this type of stuff up.

We all know you don't have a degree in Econ or Finance - not that that means anything, because you can have a degree in Econ, like AOC, and understand completely nothing about Econ.

[JoshSP1985]

Not to mention 99.7% of corporations are small business. Libs think raising corporate taxes and regulations are good because it hurts the massive corporations when in actuality it bankrupt small business while big business can afford it and monopolize.

Now you know why libs do it. Same reason they lock down their states. Small businesses die. You can't have self sufficient people they're harder to scare rule.

[sandaltan]

I always get a kick out of dudes who don't lift, don't show their face, and try to talk chit about me, an actual Chad. Good times.

last i checked rhadam you're a metrosexual government employee who wears makeup to cover his blemishes and paid actual money for two big gay tattoos

[ImpressiveGainz]

Taxes are bad. The end.

[DukeOfWoodBerry]

Lol @ Duke roasting everybody over their IQ.

Shyts is mad geeky to be bragging about IQ, but don't act like you're some intellect when you reside somewhere in the middle of the bell curve.

It doesn't take a 210 level IQ to go to Investopedia and look this type of stuff up.

We all know you don't have a degree in Econ or Finance - not that that means anything, because you can have a degree in Econ, like AOC, and understand completely nothing about Econ.

I do have a degree in finance lol. I posted a pic of my degree when wincel tried to dox me as some guy with a history degree. I have an MBA with a specialization in analytics too. Not that it's super impressive because it was relatively easy. My intelligence is not middle of the bell curve tho kid.

[rhadam]

last i checked rhadam you're a metrosexual government employee who wears makeup to cover his blemishes and paid actual money for two big gay tattoos

Awwww how cute another fangirl.

[OPGenesis]

I do have a degree in finance lol. I posted a pic of my degree when wincel tried to dox me as some guy with a history degree. I have an MBA with a specialization in analytics too. Not that it's super impressive because it was relatively easy. My intelligence is not middle of the bell curve tho kid.

lol if you think you're some kind of intellect.

I read most of everything you post on here. You're not blowing anybody away, son.

There are only a few people I would consider high IQ - Numbersguy being one - but you're nowhere near cutting that list.

[jamesfrancis1]

[DukeOfWoodBerry]

lol if you think you're some kind of intellect.

I read most of everything you post on here. You're not blowing anybody away, son.

There are only a few people I would consider high IQ - Numbersguy being one - but you're nowhere near cutting that list.

Not saying I'm the smartest poster here at all. But by objective measures I'm not average intelligence. You just said I don't even have a finance degree so you're pretty butthurt about something. It'll be okay.

[OPGenesis]

Not saying I'm the smartest poster here at all. But by objective measures I'm not average intelligence. You just said I don't even have a finance degree so you're pretty butthurt about something. It'll be okay.

Thanks for the reassurance

[EternaLovE]

People who have never worked in corporate finance or accounting are absolutely ignorant to these topics ans should be disregarded anytime they talk about taxes.

“Bbbbb Amazon paid NO Federal taxes on BILLIONS of revenues!!!!”
What about the billions spent on fixed assets? Depreciation of fixed assets not even once son.

I just can’t wait for the corporate overlords to start funneling money to democrats when section 754/100% bonus depreciation expires...then dems will claim “BUT JOBS!!!”

most liberals tend to be broke, jobless unsuccessful losers. its natural for them to not understand corporate taxes, let alone understanding anything in general.

just lmao at libs. but but trump paid $750 in taxes this year without knowing he prepaid millions in corporate/property taxes every year. the media knows how low IQ many people are so its very easy to spin that tax fraud on him.

[FChumChum]

Reality and facts are that we went from 37% tax rate, they tax every corporation in American at that rate.

Changed to 27% and its high/middle but not the highest in the world.


Example of a low tax rate. Ireland 14%


So the liberals argue that our tax rate is a give away to the top 1%, and its bad for the middle class.

How i see it, if you have the highest tax rate then jobs will move overseas. I experienced this first hand. I worked for a biotechnology company, they moved manufacturing to Ireland and Brazil, because they could save hundreds of millions in taxes. While thats good for the stock prices that killed several thousand very lucrative jobs. All through this we saw first hand the working conditions in Ireland, and SA. They were abysmal compared to those in the US.

Raise the corporate tax rate, lose jobs, lower it and you'll see jobs move right back in.

Thats why our unemployment dropped so drastically. But supposedly trumps giving his billionaire buddies a tax break according to the low iq group.


Your thoughts misc.

Your US numbers are all wrong...

Great job owning the liberals..

[FChumChum]

Maybe to expand on my point, would you rather manufacture at a low tax rate in China to save a buck, or have competent people perform manufacturing in the US?

It doesn't matter for garbage like trinkets or other stuff that you don't expect to last, vs something like pharmaceuticals that I'd trust way more out of the US. Thats why the tax cuts brought jobs back.

Covid showed that lots of pharma API is currently manufactured in China...

[dannyg1217]

Your US numbers are all wrong...

Great job owning the liberals..

great, show me where?

[miscinbro]

liberal Democrats have zero understanding of accounting. You increase the corporate tax, second and third order effects: 1) firms increase prices to consumers and other businesses, 2) shareholders get lower after-tax return, 3) employees for that business get lower pay due to less capital stock for investment to increase productivity.

Number three is a huge leap, and totally pie in the sky fantasy. I’m sure an amazon driver is glad to know they make so much more than a UPS driver because amazon stock is 3k a share ... ohhh right ... they don’t.

[128]

I work in accounting an literally everyone in the office is a rep. We all had a good laugh about the Trump tax return “scandal”

I don’t know a single person who cares about his taxes, nobody cared then and nobody cares now.

Just shows how little the left has on him, and Biden already had the commie vote

[FChumChum]

great, show me where?

Corporate rate was 35 and now it’s 21.

How can you debate or form an opinion when your facts are wrong..

[FChumChum]

You don't have to move very many jobs overseas to pay tax overseas. You move your registered office to a low tax country and fk around with cross charging and all sorts of other crap, so that the locations where all the money is made and workers are located, e.g. the US, show no profit, and all the profit is shown for the registered office in the low tax area.

You physically move jobs for cheap labour.

You legally and electronically move profits for low taxes.

This is a smart post.

Companies will take actions to minimize taxes, but I haven’t really seen tax be the driver of decisions. Companies will invest in projects where expected NPV is greater than 0 or expected return > cost of capital (acknowledging that tax rate goes into each of these formulas).

[ByAssociation]

Neither can really be proven by facts, there are times and instances and slices of the economy that have improved with either approach. It’s really up to discussion and opinion than any checkmate fact based argument. You’re also looking at the issue from a fairly narrow point of view by only considering job departure overseas. Ultimately I think it’s important to remind people that it isn’t just economics and cost that can drive jobs overseas or keep them here, if more people had money to buy made in America goods compared to scraping by and needing to purchase mass produced made in China garbage maybe we wouldn’t see companies utilizing their amoral lack of regulation and slave labor. Is it for the government to put in place these tariffs and laws to control people, who is to say. I personally believe that the facts can be strongly construed to side against trickle down economics especially its often ignored long term impact. Corporate law and taxation is quite ****ed and only getting worse. We are moving further and further from a land of opportunity to a rich get richer while the poor work and pay the majority or taxes. We are moving closer and closer to a social class system that resembles the UK more than it does the USA of yore.


FWIW to throw out another curve ball if you think having a low tax rate is going to incentivize companies staying here and that will be the factor leading to long term economic success here and abroad I have some very bad news. Efficiency, energy and transportation, quality of supporting industries, quality of skilled services, infrastructure. These are all far more important topics that are never discussed.


Don’t worry, the tactics of bullying other countries and businesses while simultaneously prostituting ourselves toward others is sure to work out great in the end.