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Obama Offers to Cut Corporate Tax Rate as Part of Jobs Deal
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childplease
Banned
Corporate Shill is gonna shill.
CyclopsRock
Member
I'm confused by some of the replies here, so maybe I'm misunderstanding what this is; The US only has one tax rate for businesses, doesn't it? The UK has two (though they are to be aligned next year), one for large, one for small; But I thought the US only had one? Over half the people in the US are employed by small or medium businesses, but people seem to be talking as if this will only affect the Google's and Walmarts etc?
Fenderputty
Banned
Just out of curiosity, how do you imagine the big money backing GOP crazies will react to their refusal to even compromise here? This is the type of compromise offer that would seem appealing to most of the people backing most of the politicians on both sides of the isle.
CharlieDigital
Banned
Don't think they care.
As has been pointed out already, big businesses in the US already have very low effective tax rates through the generous (ab)use of deductions, loopholes, and offshore earnings. It's well documented that some of the largest US companies have an effective 0% tax rate.
The wealthy individual backers of the GOP do not make their money through corporate earnings in the first place and their income would not be affected in the slightest (now if this had been a compromise to lower the capital gains tax rate...).
Where this would have the most impact is small businesses who don't have clever accounts, offshore earnings, and actually depend on their corporate income.
This would be a big deal for many small and medium sized businesses; however, this is an empty move, as far as the large individual GOP backers are concerned.
just heard on the radio. republicans are furious, claiming that not lowering taxes for individuals, will be disastrous.
I guess Obama didn't get his directions from park avenue. they don't want their businesses paying taxes, or themselves.
I feel like this is compromise. as corporations are people, right?
either way, none of us poor people( outside the 400 people that control wealth) will get jobs or working city infrastructure. so why argue..
the politicians will surely work in our best interest.
I guess Obama didn't get his directions from park avenue. they don't want their businesses paying taxes, or themselves.
I feel like this is compromise. as corporations are people, right?
either way, none of us poor people( outside the 400 people that control wealth) will get jobs or working city infrastructure. so why argue..
the politicians will surely work in our best interest.
The long game seems to be to have republicans paint themselves into a corner while waiting for democratic supermajority so they can push everything that they need to through.
The republican long game is to have the country listening to right wing rhetoric for so long that anything else seems like crazy left wing liberalism; if the democrats actually want to implement real liberal policies, they're basically going to get shouted down as communists.
The media that is vested in maintaining the illusion of centrism will play right along with the right wing rhetoric (as they've done for so long), even though that center occupies what is traditionally far right politics.
Democrats win a most phyrric victory. Rich white people get what they want.
Omegasquash
Member
Of course the GOP is up in arms. Obama said it. Obama could say that gays have no right to marriage, all sex is considered intent-to-make-people and therefore abortion is murder, join the fucking GOP and destroy any social support altogether and they'd still hate him.
diffusionx
Gold Member
Corporate tax rates should be cut, or preferably eliminated. I say this as a very liberal person. They don't do anyone for anything except for providing steady employment to big company accountants. They distort the market and end up getting paid by other people, whether it is shareholders or customers.
A much better idea would be to cut the rates while raising the capital gains tax. I realize that's not a deal on the table, but I would still take a corporate tax rate cut in exchange for prudent and long-neglected investment. It's a no-brainer, actually.
edit: Republicans won't take this deal. Republicans won't take any deal.
A much better idea would be to cut the rates while raising the capital gains tax. I realize that's not a deal on the table, but I would still take a corporate tax rate cut in exchange for prudent and long-neglected investment. It's a no-brainer, actually.
edit: Republicans won't take this deal. Republicans won't take any deal.
teruterubozu
Member
Yup, looks like Boehner, McConnell and Steel are shitting on it right now.
jamesinclair
Banned
Dont forget abysmal working conditions that require keeping ambulances on standby.
And no health insurance to cover the costs of using said ambulance.
AHAHAHAHA
its pathetic. I'm mad that he caved. and still, the gop is more mad than supporters, because, well, obama!
I'm willing to bet the GOP will want caps on how little you can make in relation to you're tax rate lowering. it's not like business tax doesn't affect a large number of the 1%. they all have businesses. this is for them, which is why it turned my stomach.
even then, not enough for the gop.
CharlieDigital
Banned
Yes, this would do a much more interesting compromise.
As I said above, corporate tax rate mostly has an impact on small and medium sized businesses who don't have the same tax sheltering capabilities as large corporations.
Americans are generally so misguided on the topic of tax rates in the US due to the clever misdirection used by both parties to focus primarily on corporate and individual earned income tax rates instead of the capital gains tax rate.
CharlieDigital
Banned
Let's put it this way.
Take Mark Zuckerberg or Bill Gates or Elon Musk, for example. Do you think their wealth is affected more by the corporate tax rate or the capital gains tax rate?
teruterubozu
Member
The GOP are also saying Amazon represents unpatriotic sales tax evasion. They're basically telling Bams to fuck himself, in so many words.
jamesinclair
Banned
Thats true, the company spent years and millions literally firing people so they wouldnt have to enforce sales tax collection.
Again, they FIRED PEOPLE so they could avoid collecting sales tax.
And Obama speaks of them like theyre some kind of american hero?
Lets not even get into how the company mission is to destroy small business and main streets...
Beer Monkey
Member
This will ultimately raise tax burden on the middle class. Ugh. We are already carrying this nation like we never have before.
business interests don't allow politicians to meddle with either of those.
on topic this appeals to a large demographic of wealthy people who would benefit from less % of tax, as well as incentives to keep work in America. ( which they probably won't do) while it isn't a cure all, it is a part of a jobs proposal, and it's solid in my eyes considering its benefiting the wealthy, and not the rest of us.
your speculative will always remain just that, Obama can't even touch this. we can debate about it, but it's never going to happen unless business interests, who own campaigns, want it to happen.
teruterubozu
Member
So is it really caving then? Or just one big political show? I just can't tell anymore.
Fenderputty
Banned
That's pretty upsetting. lol
CharlieDigital
Banned
Big political show.
Boom Boom Pow
Banned
what does this even mean anyway? do you not want either side to try to compromise?
so basically, instead of passing some type of law, you want both side to just try to get what they want, and neither will get what they want, and all the while they'r enot doing shit while making 130k a year
I didn't say I believed what they were talking about, just that if that's what is getting reported, that's what people are going to believe.
According to the article, he ran on a tax cutting platform, cut taxes, and then when they lost an election, he decided to raise taxes as a way to stop the losses. The raises didn't offset the earlier cuts, if I'm understanding this correctly.
Whether Reagan would stoop that low or not, it's in his name that a lot of people are doing it today. Also, it's a funny meme. I like it. I give it 3.5/5 meme stars.
dragonfart28
Banned
This is the opposite of a concession?
rofl
rofl
PhoenixDark
Banned
I'm baffled at the negative responses, and curious what people want Obama to do here. Even this compromise is unlikely to be accepted by republicans, which only highlights how extreme they are.
Let's be honest: Obama is proposing to lower corporate rates to about what they pay now, thanks to tax avoidance tactics. This isn't some major giveaway, in fact corporations are hesitant to support lowered rates because it could cost them their tax write offs/loopholes.
Also, I fully support cutting manufacturing taxes. I'd be fine lowering it to 20%.
Let's be honest: Obama is proposing to lower corporate rates to about what they pay now, thanks to tax avoidance tactics. This isn't some major giveaway, in fact corporations are hesitant to support lowered rates because it could cost them their tax write offs/loopholes.
Also, I fully support cutting manufacturing taxes. I'd be fine lowering it to 20%.
Hey now, let's not insult them. They'll vote to spy on Americans or bomb foreigners as well.
General Choomin
Banned
Obama should of never even offered this. Neglecting the reasons why people elected you is terrible. If I was president I would just skip arguing with these shills for the rich in both parties and just invade one of them Caribbean tax shelters. That would get senate and house to the table with a GOOD jobs plan much faster then begging and appeasing.
I don't even care anymore. none of this helps us out.. business does just fine with no American employees, while hiding from our tax system.
I just wonder what happens when they've exhausted all of us. we can't buy things without money..
CharlieDigital
Banned
It does you a lot of good assuming you are incorporated.
CrunchyFrog
Member
It's sad that this gif has to get trotted out as often as it does.
TheLaughingStock
Member
So what's the effective rate going to be? And will we still have a seesaw in terms of the burden depending on the company?
We are but I don't see that detailed anywhere, how can I find out more? I will take back my negativity hey a 7% cut would be nice.
Midnight Moon
Banned
Just because they cut their taxes doesn't mean they will create more jobs. What a sucker.
PanicFreak
Member
What people don't understand is that personal income tax rates have to be higher than corporate rates. Corporations can move assets at will and can move IP around the world. If their tax rates get too high, they will just invert and move completely off-shore.
People can't.
CharlieDigital
Banned
I'm not an accountant, but in the most general terms, If you are incorporated as a C-Corp, then your earnings are subject to the corporate tax rate in which case a decrease in the corporate tax rate would definitely affect you. Doesn't matter if you are a 3 person C-Corp or a 70,000 employee C-Corp.
If you're incorporated as an S-Corp or LLC -- which uses a pass-through tax structure -- a decrease in the corporate tax rate would not affect you; only a decrease in individual earned income tax rate would affect you.
(There are some edge cases as you can be set up as one type of corporation and elect to be taxed as another type).
They want him to exercise some sort of dictatorial power (while crying about the NSA and drones) that legalizes pot, gay marriage, melts down the military, forgives all loans, and fixes everything wrong.. Because both parties are the same and we live in fantasy land.
Not that I think that it would ever happen, but a lower corporate tax rate with a corresponding ending of subsidies and closing of loopholes would actually be fairer.
Lowering corporate tax rates doesn't automatically equal "THE RICH ARE STEALING RIGHT OUT OF OUR POCKETS AGAIN!"
Lowering corporate tax rates doesn't automatically equal "THE RICH ARE STEALING RIGHT OUT OF OUR POCKETS AGAIN!"
CyclopsRock
Member
Yeah, the goddamn idiot. Why doesn't he just read the book about economics.
Hmmm I believe we are a S corp I'll have to check I don't do our accounting thanks for the description though gives me somewhere to start our accountant and book keeper can clear it up.
edit: We are not a S corp just looked that up. It's looking good for us fingers crossed.
CharlieDigital
Banned
Empty threat.
Facebook, Google, Microsoft, Twitter -- these are all American companies founded in the US for a reason: we still have the best talent, creativity, strongest IP protections, and relatively low corruption.
If it were only a matter of taxes, then they could move to Somalia and effectively pay no taxes. But good luck finding qualified workers.
Deified Data
Banned
at people thinking this is a serious proposal. He's legislatively giving them a rope to hang them themselves with.
When has this ever worked in the past?
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