permafrost Loc: Minnesota

Want to destroy the country faster?

Have your right wing congressman vote as trump wishes..

President Trump plans to unveil his new tax plan on Wednesday.
Sources tell CNN he may propose slashing the top corporate rate from 35% to 15% -- as he proposed during the campaign.
Such a dramatic change would likely set up a clash with Republican leaders on Capitol Hill.
Here's why: Republican leaders are eager to cut corporate taxes, but for various reasons they don't want to add to the country's debt. And a 15% corporate rate could drive up deficits by a lot.
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For example, the Tax Policy Center estimated in November that Trump's 15% proposal, coupled with a repeal of the corporate Alternative Minimum Tax, could reduce revenue by nearly $2.4 trillion in the first decade.
To put that in context, that's about $240 billion a year -- which is almost as much as the $304 billion the government spent last year on income security programs such as food stamps, unemployment benefits and child nutrition.
The cost could jump to nearly $4 trillion if Trump also chooses to extend the 15% rate to so-called pass-through businesses, which include everything from small businesses to big law firms and investment partnerships. The owners and shareholders of those businesses pay a top rate of 39.6% today.

PeterS

And here we thought Trump was against the dreamers! Now mind you, currently the effective corporate tax rate is 12.4% so if we were to eliminate all the deductions a 15% tax rate would actually be an increase. Just saying...

viking747

PeterS and perma, What a combination. You two have a very tiny understanding of the situation.

Rivers

Wrong. The current Corporate tax rate is 35%, some say the average is around 11 to 12% after deductions. Having said that, many, especially smaller corporations pay close to the full amount. We have the highest corporate tax rate in the world, and it is keeping close to $2T in off shore accounts. Of course you leftist socialists can't bare the thought of ever lowering any tax rate to give any business, or economy, a break. Or, allowing anyone to keep more money in their pocket....God forbid.

PeterS

Wrong? The effective tax rate is the amount actually paid and, as I said, if deductions were eliminated a 15% corporate tax rate would work out to a tax increase. And hey, as a good liberal I am always in favor of lowing taxes if they will raise them.

That said, given that men like Trump aren't going to want to give up their deductions look for a cut to around 20 to 25% otherwise democrats won't support it and his tax package will go no where...

http://money.cnn.com/2013/07/01/news/economy/corporate-tax-rate/

Rivers

Like I said, many SMALL corporations pay close to the full amount! Research that! Plus, small businesses, like LLC's and sole proprietors pay the full FICA brunt as well as the highest individual tax rate. Taxes are killing businesses, especially small businesses....having owned one myself.

S. Maturin

I HAVE A DREAM!

I guess that is allowable for just a few?

PeterS

"The Situation?" And what situation don't we have an understanding of?

PeterS

Look, we are talking Corporations here and the vast majority have taxable earnings in the millions not hundreds of thousands. Your hyperbole aside proprietorship's, LLC's, partnerships and such aren't impacted by this legislation. Corporate taxes aren't killing small business because they don't apply to most small businesses and the thing is, in the end, they likely won't even be touched.

S. Maturin

Perhaps all the crippling regulations Obama constructed are more threatening to enterprising Americans than taxes alone?

Rivers

You're wrong! Part of this tax reform is to reduce taxes on LLCs and small businesses. Your hyperbole is just that....hyperbole. Corporate taxes aren't killing small businesses????? Bullshit! I used to own one, moron! You talk just like an economic challenged leftist democrat!

viking747

If people could afford owning a business we would have more jobs. That would be a chore for PeterS to understand that more working means more tax dollars being paid.

S. Maturin

For professional dole-takers and professional politicians, nothing concerning the real world of economics makes any sense.

PeterS

LLC's, partnerships, and proprietorship's don't pay taxes but have them passed through to the owner(s) of those businesses. That means any tax reform for them is done via personal income taxes not corporate taxes. Those taxes will be dealt with separately, and likely a different time, from corporations. So again, unless your small business was registered as a C class Corporation any legislation dealing with corporations will have no impact on it. NONE!!! I don't know what you think you are arguing here, but unless you set up your business as a C Corporation you weren't paying corporate taxes nor did any tax legislation directed at them have any impact on you.

And exactly why do you think having once owned a small business means anything? I got my MBA in 1984 and have been involved with dozens of different businesses and never did I find that taxation the determining factor in participating in them. Hell, taxes (both corporate and personal) was higher in the 80's and 90's than it is now. I found the best way to deal with taxes is to pay them and move on. Hyperventilating over them is a waste of time and if you are that worried about taxation then you probably shouldn't be in business in the first place...

PeterS

Have you ever owned a business? Businesses are designed to meet some form of demand and unless you design your business that way you will be belly up in under a year. There is no "affording" a small business because your customer base is what pays for your business. So long as you serve your customer base your business will pay for itself and anyone who can't differentiate between personal taxes and corporate taxes should say as far away from business as you possibly can...