Re: Is Romney in fact a tax cheat
posted at 8/26/2012 1:04 PM EDT
In Response to Re: Is Romney in fact a tax cheat
In Response to Re: Is Romney in fact a tax cheat : What a pie-in-the-sky idea! First of all, the only thing that matters is the EFFECTIVE tax rate. You know, what corporations actually pay? If in any given year, year over year, 66% of all companies pay NO taxes, then what does that tell you? The effective rate that business actually pay is not the nominal rate on the books. Second of all, did ya ever hear of the profit repatriation program that the wingnuts instituted a few years ago? No? Good thing because it was a complete and utter failure. US companies and the Chamber of Congress in cahoots with the wingnuts came up with a plan that incorporated just what you propose. A waiver of taxes on profits earned overseas. The wingnuts and the businesses promised that the TRILLIONS of dollars that came back to the states would create HUNDREDS of THOUSANDS of jobs. Happy days are here again. What did happen? Those companies repatriated their profits with little or no tax ... and then those companies began to LAYOFF workers. The program was an umitigated failure and NONE of the hiring boom happened. In fact employment in those companies DECREASED. As usual the wingnut rhetoric is as empty as their heads. The reality is that the taxes that American companies actually pay is less than the average of other industrialized nations. So spare me the 'taxes are too high' bumper sticker politics, it's not true for business taxes nor for individual taxes. Is a simpler tax better? Most definitely. But not as a way to give the wealthy even a bigger tax cut. Think about this; Mittens paid a tax rate of 14%, TOTAL, income tax with no payroll tax. The bottom 40% of workers pay that rate in payroll taxes alone. (Social Security and Medicare taxes are imposed at a combined rate of 15.3%) They may not pay income tax, but Mittens doesn't pay payroll tax either. So the poorest people in the country pay the same EFFECTIVE tax rate as the top 0.1% earners. If we want to stop tax evasion, we can simply eliminate loopholes that don’t encourage anything but corporate profits and clean out the more anachronistic parts of the corporate tax system, and if that brings US corporate tax revenues up toward the level of similarly situated companies abroad, all the better. If we can then lower the nominal tax rates on business, and increase revenue a bit, fine. But the focus on the nominal tax rate is a distraction to get you to ignore all the massive tax avoidance going on.
Posted by 12-Angry-Men
Effective tax rate .... how do we get to the effective tax rate (income - expense - tax credit / deferred income/ income outside U.S. that are not taxed). Is the same for corporate as for indivuals.
Year over years companies has effective tax rate at 0 or negative tell me that they don't like to pay the nominal rate so they find area in our tax code to offset that income.
To the moonbats, of course the repatriation program(2003) didn't work and a failure in their eyes . Liberals look at all that money coming back as their own. Is private money made from private companies. They can do what ever they want to do with it. They did stocks buy back, debts repayments, biggest dividends payout to stockholders, pay bonus to their people, everything to improve their company. Moonbats are upset because they only got to tax them 15% instead of 35% (20% of that money that the government didn't get for social programs). Where does it say that companies profit (oversea or here) are required to hire people/create jobs. The fact is around a trillion dollar came back into the US into pockets of americans and the government got (15% of the action). Is 15% of something better than (0%). Liberals just don't like if others get rich
Everyone does it (corporations,indivual) . Romney pay 14% (who cares , is legal) Obama give 48k to his daughter to offset taxes (who cares), The Clintons hide 5 millions of their income behind a charitable foundation (who cares). Is our tax code, don't like it change it. Everyone is playing by the rules
Income tax and tax on wealth is 2 different things ... they are both form of income but are completely different.
Let say 2 people work , one make 1000 a week and the other make 2000 a week. Our tax code say we tax the 2000 a week person more (higher rate, liberals love that, rich need to pay more) At end of the week both guys after expenses etc.. have 500$ left over, the guys that made 1000$ decide to spend that 500$, the 2000$ guy decide to put that 500$ into the stock market (that's after tax dollar he put into the stock market) A year later the guy that making 2000$ is making more money because of the money he invested is also paying him dividend but only begin tax on the income from wealth/capital at 15%. The guy that make 1000 a week is really mad now(why is his effective tax rate lower than my income rate? instead of asking if I invested in the stock market, I too can acheive a lower effective rate for my combine income)
Romney does not work. His after tax dollar is at work, like all investments there are risks (See people that bought facebook stocks). The tax rate on investment is low to attrach investors, without them our economy can not function. So stop complaining , no one is stopping you from investing