The Real Result of Raising The Corporate Tax Rate

Discussion in 'Politics' started by Mopar Dude, Sep 14, 2021.

  1. Mopar Dude

    Mopar Dude Well-Known Member

    I just read a piece where the Democrats plan to pay for this multi-trillion dollar spending spree by raising the corporate tax rate from 21% to 26%.... To the average person I am sure that sounds just grand. But let me tell you what the true result will be.... The large concerns that are flush with cash will once again move their facilities overseas and the little guy like me will carry the burden. Now allow me to forecast the endgame for you since our lawmakers won't... Because the fed will lose the proceeds from the largest concerns that have moved their production facilities overseas, in two years the Dems will recognize a shortfall. You can bet that in 2023-2024 the corporate rate will once again increase to make up for the business they chased off shore. And again, guess who will bear the burden?

    Again, to the average guy on the street I am sure this all sounds just like Utopia. We are finally sticking it to "the man"... However the reality is that people like me will have to tighten our belts. That means fewer jobs and lower wages all the way around. And when you multiply my dilemma across all of our nations small business concerns, well it looks like little Billy will have to use that old baseball glove just a few more years.

    Why won't our nations leaders look at the long term impact of their greed? Because they only have to view the results of their self serving actions as far as the next election cycle. And frankly, I am about fed up with it. I just may sell this place to the Chinese investors that keep begging me to sell. If I didn't have eight people that I cared about, I would do just exactly that. And depending upon what the CPA tells me April 15th, those cards just may get laid on the table.
     
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  2. yakpoo
    Amused

    yakpoo Well-Known Member

    Our "Leaders" are a pack of miscreants lured into government service by the promise of easy money. Our "Leaders" are no different than the prospectors who rushed to California in hopes of finding gold...not exactly the cream of our intellectual or ethical crop.

    I can't explain the subject any better than Nobel economist, Dr. Milton Friedman (the man who ended Apartheid in South Africa with economic policy)...

    "Director's law states that the bulk of public programs are designed primarily to benefit the middle classes but are financed by taxes paid primarily by the upper and lower classes. The philosophy of Director's law is that, based on the size of its population and its aggregate wealth, the middle class will always be the dominant interest group in a modern democracy. As such, it will use its influence to maximize the state benefits it receives and minimize the portion of costs it bears."



    This mess wouldn't have been possible with out the adoption of direction taxation (16th Amendment). Get rid of direct taxation and the problem will fix itself...naturally...as the Founding Fathers intended.
     
  3. yakpoo
    Amused

    yakpoo Well-Known Member

    Here's a discusses of why the Rich like high taxes and how our criminal "Leaders" profit from it...

     
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  4. charley

    charley Active Member

    Every business entity has a different decision tree based on the commodity the entity produces or is engaged in, whether cerebral or physical services, physical product sale, or manufacturing, or wholesale/retail buying or selling (or both), as a few examples.

    Not knowing your particular business, I would be very ignorant to address your comments as a targeted response, because obviously it would be insulting and condescending.

    My thoughts are more historical experience based, as a guideline.

    The post war years were (and remain) the most productive and wealth building periods in our history. This was a benefit of the Roosevelt actions during the previous 2 decades. The taxation rates on business entities post Roosevelt....Eisenhower, and Kennedy to be specific....were astute and respectful of historic taxation results (including an in-depth review of the Civil War period).

    The tax policies had a commonality of purpose: growth, opportunity and equality. Balanced social programs coupled with targeted defense needs appropriation continued our growth during those decades.

    The painful slide to businesses viewed as us against them, began with the Nixon wage-price controls. Yes, the Johnson Vietnam War and Great Society spending years boosted economic growth to 4.9%. But, inflation increased to 4.7%. As a result, a prosperous America started importing more goods and services, and we were paying in Dollars, and under Nixon, this created a serious balance of payments deficit. This caused the gold standard to receive a very painful donkey kick bruise, that is still with us today, and NO POTUS has solved this dollar value conundrum, and all continued a debilitating open $ barrel dump for foreign entities to prosper due to our shortsightedness. We continue to plan for a minimum of 4 years and a maximum of 8 years, and the resulting and inevitable fiscal policy debacle every election cycle fuels, instead of planning for 1-3 generations future growth.

    And here we are. I know, long winded. But, my insignificant experience and interpretation of history has convinced me of one important aspect of our Federal Republic: our economic engine should not be dependent on foreign wealth, and any American business selling their entity to a foreign investor is more harmful than any fiscal policy changes that occur every 4-8 years.
     
  5. yakpoo
    Amused

    yakpoo Well-Known Member

    Something I've mentioned in other threads, but is particularly germane to this discussion, is that the Rich don't pay taxes...the Economy pays taxes. How so?

    Well, you first need to consider what the Rich do with the money they don't spend. Do they bury it in the backyard or do they invest it into the economy...to expand economic activity and grow their capital?

    The second choice is the obvious the answer. So, when we "Tax the Rich", we're really pulling capital from the economy...which destroy opportunity for the poor and lower-middle class. "Tax the Rich" is a Myth!

    https://www.investopedia.com/terms/c/capital-outflow.asp
     
  6. yakpoo
    Amused

    yakpoo Well-Known Member

    Here's an excellent discussion that debunks our Tax Myths....

     
  7. Mopar Dude

    Mopar Dude Well-Known Member

    You are right..... But the thing about this is that to the average person living hand to mouth, all they know is that wealthy people have more cash and have it made in the shade..... It wasn't all that long ago that I was a hand to mouth person and thought in exactly those terms. The fallacy in all this is the way we teach young minds. I was taught to work hard and I could have anything I wanted and that the people that had nice things worked hard to get them..... That isn't the lesson in our current society. The guy living paycheck to paycheck could no more care less about how a wealthy person assets affects his meager paycheck than the man on the moon. The average construction worker is oblivious to the fact that he isn't building unless somebody is taking a risk to finance that building. If that risk isn't taken, the building isn't erected and the construction worker doesn't have a job. And that message is lost on the current generation...... Until we lose this take all you can get mentality, we will sink further and further into this pit of no return. And there won't be any bail outs when that happens.
     
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  8. yakpoo
    Amused

    yakpoo Well-Known Member

    I'm not sure I understand what you're saying here. Are you saying our markets should be closed to non-citizens? That doesn't seem to make economic sense.
     
  9. charley

    charley Active Member

    Not at all. My statement is a conclusion of all the comments that I posted that preceded this statement.
    I don't know how the post in entirety interpreted a closing of our markets to non-citizens. But, no.
     
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  10. yakpoo
    Amused

    yakpoo Well-Known Member

    The young "elite" have no concept of how much harm they do to innocent strangers. It's not their right to make life decisions for others...PERIOD! Many are deep in college debt and living with their parents. They wouldn't know an "intelligent life decision" if it jumped up and bit them in the butt.

    You made me remember something I hadn't thought of in years. My "hippie" years were thrust upon me at a young age. One evening, I was heading south from Canada and the trucker I was riding with needed to exit I-95 to head towards Trenton, NJ. It was 2:00 AM, cold, raining...but lucky for me, I was at a turnpike overpass! There was a wide expanse of dirt area under the overpass, so I laid out my sleeping bag and put my trousers in the sleeping bag case for a pillow.

    Much to my astonishment, I woke up to bright sunlight and a whole gaggle of business folks dressed to the "9s" in their business suits and polished Florsheims. They were standing all around me, drinking coffee (out of thermos's...no Starbucks in 1976). After I struggled to get into my trousers while still in my sleeping bag, I realized...I made camp in the middle of a commuter parking lot! o_O

    Anyway, the reason I thought about that was...I never once resented the people around me. Of course I wished I had what they had, but I was a product of my circumstances and they were the product of theirs. I was the only person capable of changing my circumstances...which I did. Had any of them handed me $100, that would have been like throwing me a 100 lbs boat anchor. Hunger focuses the mind.
     
    Last edited: Sep 14, 2021
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  11. FryDaddyJr

    FryDaddyJr Well-Known Member

    saying slaveowners should have gotten reparations is what counts as successful GOP rhetoric these days.
     
  12. yakpoo
    Amused

    yakpoo Well-Known Member

    ZING!!! ...did anyone just see something fly by? :confused:
     
  13. Mopar Dude

    Mopar Dude Well-Known Member

    Earn a government paycheck I take it?
     
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  14. toughcoins

    toughcoins Rarely is the liberal viewpoint tainted by realism

    Deep Thoughts, by Jack Handey . . .
     
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  15. toughcoins

    toughcoins Rarely is the liberal viewpoint tainted by realism

    I think he said he "works".
     
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  16. toughcoins

    toughcoins Rarely is the liberal viewpoint tainted by realism

    “I’ll have what he’s having . . . But I’ll be damned if I’m going to work for it.”
     
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  17. ddddd

    ddddd Active Member

    The end goal does appear to be the elimination of all small businesses in favor of a few large corporations (that is why those companies are often in favor of such tax increases).
    @Mopar Dude if you can, hold out as long as possible. They win by forcing you out.
     
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  18. yakpoo
    Amused

    yakpoo Well-Known Member

    If you haven't watched the video in Post #3, you'll like it. It's a Sam Houston State University history professor explaining why politicians like high taxes. It's an eye-opener.

    Hint: It has nothing to do with revenue collection. ;)
     
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  19. ddddd

    ddddd Active Member

    I just went back and watched it. It is an eye-opener. I have a similar view as you that the tax code could be simplified with a flat tax and no (or virtually no) exemptions. Carly Fiorina proposed a three page tax code back in the 2016 primaries and there have been similar ideas before. There would need to be some fine-tuning but that would be something I could see being the best method.
     
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  20. yakpoo
    Amused

    yakpoo Well-Known Member

    Our tax code should be used for revenue collection...not social engineering. If we have to have an income tax, the flat tax is certainly is the way to go. As far as what that rate should be, I think we should use the Laffer Curve to determine the optimum rate so we can stop arguing about it.

    Is there something that you don't like about the Fair Tax? I think "indirect taxation" is the way to go...as our Fore Fathers intended. Shared sacrifice is fundamental to our Democracy. It's interesting to note that we had no immigration problems prior to the passage of the 16th Amendment. Immigration for work makes our country stronger. Immigration for welfare makes us all weaker.
     
    Last edited: Sep 16, 2021

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