Quote:
Originally posted by oldtimer
Bush calls it tax "relief". The part I like is how Republicans always try to explain were better off if they give the tax relief to big corporations instead of giving it to us.
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We are. I'm amazed at the limited understanding of economics on this board. *some* of you have had to have run a business before.
Corporation X makes 100million in profit if it pays NO tax at all, it has 100million extra dollars at the end of the yr to do something with. Now I'm sure those of you working out of your bedrooms think that what a corporation thinks is that it should give its CEO the 100million and piss on the little guy but that's just your tinfoil hat talking again. What they think is that by expanding their business using the 100million, they will make more money in the long run for the CEO and everyone else involved. So you're *way* more likely to have 100million in new business than you are to have 100million in new bonuses.
Now lets sat the corp is taxed at 39% (arbitrary number, I'm just using a personal tax rate #)
Now, the corp got to keep a little more than half their profit. They then have half as much to expand with. I'm sure you'll find a way to tell me that having 61 million will make a company expand faster than if they have 100million (because of your liberal thinking) but thats just not the case.
12Clicks:
Its not hard to explain at all. The theory is corporations will use the extra money to create more jobs. The truth is their just as likely to use it to move offshore or give themselves bonuses. [/B][/QUOTE]
No, this isn't the truth it's your theory
Quote:
Originally posted by oldtimer
Now if the Republicans only give tax relief to corporations that DO use it all to create jobs, that would be a different story. Until they do that, its a bunch of bullshit.
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its bullshit to the people that don't know any better.
What is a corporation? is it a person that uses government services? no it isn't yet they are taxed.
If corporation X takes its 100million and gives it ALL to their evil CEO, the CEO will have to pay tax on the 100million. The logic that corporations should pay ANY tax is flawed and the real problem with our economy.
You need to tax the PRODUCT not the engine producing it. When you tax the engine, it makes it harder to expand. Which means fewer jobs, less productivity and just an overall less stable economy.
Oh, and to whoever it was saying show my proof. it aught to be elementary (well, for some it is) when you tax a corp on 100million, you make considerably less revenue than distributing that money out as wages and collecting tax on the wages, then collecting property tax on the houses that those wages buy, then collecting taxes on the cars that those wages buy, then on the every day goods and services those wages buy, then by taxing the wages used in building the cars and houses bought with the original wages, and so on and so on including taxing the interest the money earns in the bank.
When you take the money out at the corporate level, you take it out of the economic loop where it would be taxed over and over and over. bringing in more revenue.
shit, I just did all this typing and some of you dopes still won't get it.
