obamas job proposal

[Danzig]

Originally Posted by Danzig

http://www.examiner.com/finance-exam...oving-overseas

US corporate tax rates the primary cause for companies moving overseas

The US corporate tax rate has become a new cause for companies to move overseas to avoid what is the largest tax burden in the industrialized world. At 35%, the US tax rate on companies and businesses is nearly triple the rates in some places, and well above the tax requirements of countries such as Ireland and Switzerland.
In an expose on March 27th by CBS's 60 Minutes, hundreds of companies, and over $1.1 trillion dollars, are now being kept overseas providing nothing to the US economy due to stringent tax laws and regulations which make it difficult to invest, create new jobs, and find profitability if incorporated in America.

Cisco alone has moved eight different companies to Ireland, where the tax rate is at 12.5%. On top of this, google, Facebook, and several other technical firms employ over 100,000 workers in Ireland, which they might otherwise employ in the US if the tax code was changed or adjusted.

While many companies moved to China, India, and other places around the world for cheaper labor, one of the main reasons for the move offshore was the draconian tax rates the US government imposes on businesses headquartered domestically. In an poll taken in January on the Fair Tax, over 500 companies said they would instantly move back to the United States if this tax structure were implemented in the economy.

i went and found the post from the other thread...

now, you want to say we'd be giving them too much, i say we'd be levelling the playing field. you can't ask them to move here, and charge them far more than they'd pay elsewhere.
companies move to save money. what can we do to change that? the above is a big start.

[jms62]

Originally Posted by Danzig

i went and found the post from the other thread...

now, you want to say we'd be giving them too much, i say we'd be levelling the playing field. you can't ask them to move here, and charge them far more than they'd pay elsewhere.
companies move to save money. what can we do to change that? the above is a big start.

Fool me once shame on you fool me twice shame on me.. At what point will you stop believing what you read and pay attention to what is actually happening?

To summarize someone is saying reduce my tax burden by hundreds of millions of dollars and I will create jobs... I ask what is the penalty if you don't create jobs? Answer: None. Proable outcome? They will outsource a million jobs paying 100 K and create 200K jobs paying 25K with no benefits and Obama and business will declare victory.

[Danzig]

you know what, you're right. even tho businesses said they moved to a friendlier climate, and would move back if we met other countries lower rates, they're just lying. we absolutely should penalize the hell out of them, that way whatever business they have here will surely stay. they would meekly accept all that punishment.

[clyde]

NOTE TO USUAL SUSPECTS SELVES:



There is a reason government heads and corporate heads are said to "be in bed."

6 a one, half dozen a the othah.

Simple is...is not always as simple does.

[jms62]

Originally Posted by Danzig

you know what, you're right. even tho businesses said they moved to a friendlier climate, and would move back if we met other countries lower rates, they're just lying. we absolutely should penalize the hell out of them, that way whatever business they have here will surely stay. they would meekly accept all that punishment.

I know I am right but it sure as hell must feel better in your fantasy land.. There you can feel good until you get pounded again only to feel good again when you are promised something else. Did I say abused spouse already?

[Danzig]

abused spouse? lol me or tony?

no, i just figure if companies say they left because of taxes, which the article above says is higher than anywhere else, perhaps they are correct?

i just think of our govt wishes to get companies to come back, or to get companies to hire, they might want to look at things from a companies point of view.

now, of course businesses are all the devil, but who else creates jobs? do you work? even if you're self employed, you're still in 'a business'. if businesses find they can't make money, they either change things to make money, or they shut down. many companies have found that they can make more elsewhere. now, we can either punish them-which doesn't make them suddenly want to help out here, or we can consider what they say-which in this case has to do with corporate taxes. are they higher? were they lower? can we lower them to bring them back?

[Danzig]

an excerpt from an article about corporate taxes:

"The U.S. has one of the highest corporate tax rates in the world. Only Brazil, Uzbekistan, Chad and Argentina have higher corporate tax rates than the U.S. According to a research study by the Cato Institute, the effective U.S. corporate tax on new investment was 34.6% in 2010. This was higher than the average OECD rate of 18.6% and the average rate for 83 countries at 17.7%.

So, if the corporate rate is 34.6%, what's with the claims that companies don't pay taxes, or at least don't pay enough? In some cases it's deliberate lying, but in others it's just an exaggeration based on a failure to understand how taxes work for corporations. PriceWaterhouseCoopers prepared a study from 2006 through 2009 examining Global Effective Tax Rates, which provides some insights. By the way, an 'effective tax rate' is what a company really pays, not the rate assigned by a government. The effective rate can be lower, or higher, than the official rate declared by the government. The PWC study discovered that US-based companies operating globally pay more than eight percentage points more in ETR than companies operating globally with a headquarters outside the US. Consequently, this demonstrates not only that corporations pay a higher effective tax rate than individuals in the United States, the rates charged by the U.S. government are among the highest in the world, and US-based companies are penalized for putting their head office here.

[Danzig]

when i see stuff like this article:

http://blog.heritage.org/2011/08/13/...uncompetitive/

what else can one think but that the current environment isn't conducive to job growth? adding punitive costs to those here won't make the environment better. it certainly won't encourage anyone else to head over here either. if our taxes are higher than other countries, the first question i would have to ask is why? the second would be what can we do to change it? if the companies in the article above actually moved back, as they said they would, how many jobs does that add? if we don't lower, they don't move back, well obviously we are no better off.

so, jms, are our taxes where they should be for corporations?