Obama actually proposing to lower corporate taxes? (*) Subject to consider caveats regarding taxes of offshore earnings. This one was a bit surprising, but good, to hear!
And he's going to use the money on economic infrastructure? This will definitely help the economic boom along they come to some compromise about it.
How is putting a 19% tax on something that isn't curently taxed and putting a 14%[ retroactive tax on something confused with lowering taxes.
^^^ Well there's this part:
"Obama wants to lower the corporate tax rate to 28 percent, and 25 percent for manufacturers. Republicans want a 25 percent rate for all corporations."
Which would certainly be beneficial to new and existing corporations. (Presumably it would apply to trusts as well? Otherwise everyone would just a make a trust 100% owner of a corporation.)
Currently the tax rate is 35% if they want to repatriate profits, so many corporations just let the money hang around doing nothing overseas to avoid the tax. I remember when AAPL announced mass stock buybacks a couple of years back, rather than bring back money from offshore they just borrowed instead.
If it went down to 14% and they got a tax credit for foreign tax paid, which they probably would have to due to tax treaties, that's really not that bad. Likewise going down for 35% to 19% - foreign tax credit is very nice unless corporations really expected the money to just hang overseas forever which is not very realistic. (It would be interesting if they marked their balance sheets that way.)
"Which would certainly be beneficial to new and existing corporations." should say "Which would certainly be beneficial to new and MANY existing corporations."
Well there's this part:
I'm sure corporate tax reform is a hot topic for the wannabe-oligarchs here on TUSCL.
We have the second highest corporate tax rate in the world, but our effective tax rate is just a little above average for industrialized nations. The real issue is that we need to clean up tax loopholes if we want to get down to 28% in a revenue-neutral way. I'm cynical that any progress will be made in the face of corporate lobbying from the multinationals, the hedge-funds, the oil&gas industry, etc.. That's just how things work.
Plus, the Obama proposal will probably be DOA in the GOP-controlled Congress, anyway.
Obama has made it clear that global warming is the #1 issue affecting america.?? Everyone should support green energy industries. When science is on the march, nothing can stand in it's path. Especially government science..
As I explained before Josh it's all tied together. If you want to hike dividends and cap gains taxes to be "more fair" than you have to look at lowering corporate taxes so things don't get even more double taxed than they are now. (Which reminds me "trust" should say "trust beneficiaries" above.)
And you'll see the goal is revenue positive with the money to be spent on infrastructure. Seems like a pretty good deal to the corporates bordering their money overseas who would like to bring it back to pay dividends or do buybacks. I won't be surprised if it goes through with just a little bit of tinkering.
You just keep parroting the democrat party line Josh. Maybe you'll have a thought of your own before you die but I won't hold my breath. At least I know exactly who to ask when I need to know the Democrat's stance on something or their talking points word for word. :-)
^^^You should really be nicer to me Dougsteer. I'm the only one who actually reads your horseshit.
The Bloomberg article doesn't really say much about the tax-avoidance part of the proposal. Let's see about the real details as they unfold.
Mikeya: Thanks for bringing up climate change into a thread about corporate taxes. You're not being clear about whether you believe in climate change, or not??? Maybe you would give a shit if you had kids (like I do).
...back to the game.
Come on, Josh. This is isn't very hard. If you want other people to be nice to you you have to be nice to them. (Guess that isn't covered in the Democrats Official Party Line line so you are unable to figure out yourself...)
Yeah, Obama wants new taxes, no surprise there. The democrats have always wanted new taxes. Wait a few months and they'll think of some extra taxes they want. Of course Republicans will not go along with all these new tax proposals.
Lowering taxes (if done correctly) shouldn't free up money for infrastructure.