Quote:
Originally Posted by azndude69
I would disagree with you here.
I'm an opponent on further tax cuts for corporations cause it just doesn't seem to work for me. While it might provide short term stocks to increase because the financial statements will look better, it will hurt the overall economy in the long run.
Since the 70's tax cuts the US has never been the same. In the middle of the last century corporate and income taxes for the rich were at super high levels. Then the government decreased it further and further until now they are now at extremely low levels compared to that period of time.
I won't go into a lengthy discussion but to summarize why I don't think it won't work:
- Tax cuts don't trickle down. Tax rates for the rich and large corporation has been decreasing and decreasing since as long as you and I have been born. It hasn't trickled down.
- The Bush administration had tax cuts in the early 2000s that were worth almost $3 Trillion dollars, that could have been used on infrastructure, education, innovation. anything. $3 Trillion is a lot of money.
- Tax cuts seems to help only the rich, and since these cuts, the gap between the rich and the poor has been increasing. The richest 20% of population owns 85% of the wealth. I'm no socialist, but even that's grossly out of line. The middle class, one of the driving engines of the economy, is getting poorer.
- Jobs have not been created from these tax cuts and actually, most of the savings on the bottom line from corporations are used to invest Overseas instead of in North America.
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I don't think you read what I wrote properly
I'm not calling for corporate tax cuts on income, I'm calling for a one time 'allowance' to repatriate foreign funds into the US at lower tax rates
Where this comes from is US corporations having income offshore that never get taxed in the US, with the idea being that they will be taxed to the fullest extent (35%) when repatriated (funds brought back into the US) - but why would a company lose 35% of their offshore funds, when they can continue to reinvest outside of the US - I call for a one time grace period (6 months? 1 year) for large corps to repatriate their funds, the government will earn 5.xx% on the repatriated funds vs. effectively 0% as the corporations may NEVER repatriate these funds.
this is not a corporate income tax decrease, this is an opportunity to get something rather than nothing AND to have that money working hard in America for Americans - which I think, as hte most efficient work force (with respect to innovation) is the best use for htis money - this increase in output will create jobs & future corporate & personal income taxes at the full rates
win-win... but politics WILL get in the way of this