7 replies to this topic

[BlueMound]

How House Republicans want to revolutionize the corporate tax code
I'm not holding my breath, but this tax code change would be amazing
https://www.bloomber...n-quicktake-q-a

[Doohickie]

Explain why you think it would be amazing.

 

It sounds kind of like a VAT, but the article says it's not a VAT.

[BlueMound]

From 35% rate to 20% rate
and no taxes on overseas income.
Pretty self explanatory

[Doohickie]

Is it revenue neutral?  Plus?  Minus? 

 

It's based on sales, not income. 

 

What would it meant to consumers?

[renamerusk]

From 35% rate to 20% rate....and no taxes on overseas income.....Pretty self explanatory

 

 

Is it revenue neutral?  Plus?  Minus? ....It's based on sales, not income....What would it meant to consumers?

 

 What it likely means is, if you are a consumer whose income is derived domestically, then you will bear an even greater burden to support veterans, elders, the military industrial complex, etc; while, if you are a company or you are able to incorporate overseas, then you can sock away income overseas thus allowing you the ability to avoid even less, if not completely, the above mentioned causes.  

 

Thus, consumers will pay even a larger share to support the operating of this country.  It is a regressive and unfair loophole.

[BlueMound]

I think this tax reform is really about trade deficits and employment more than anything.

$500 billion in trade deficits a year.
High paying, middle class manufacturing jobs are disappearing.
Soon AI and automation will replace vast numbers of high paying, middle paying and even low paying service jobs. 3 million truck drivers will be replaced by self driving trucks during the next 10-15 years, is just one example.

I'm no fan of Big Corporate. But giving them tax incentives to shift profits and production back home has potential.
Is it perfect ? No
But it is a start.

I'm very worried about our shrinking industrial base. The future defense of our country depends on high tech production capabilities.

[johnfwd]

I think this tax reform is really about trade deficits and employment more than anything.

$500 billion in trade deficits a year.
High paying, middle class manufacturing jobs are disappearing.
Soon AI and automation will replace vast numbers of high paying, middle paying and even low paying service jobs. 3 million truck drivers will be replaced by self driving trucks during the next 10-15 years, is just one example.

I'm no fan of Big Corporate. But giving them tax incentives to shift profits and production back home has potential.
Is it perfect ? No
But it is a start.

I'm very worried about our shrinking industrial base. The future defense of our country depends on high tech production capabilities.

Salubrious changes in the tax code as it applies to corporations may provide the economic incentives to alter in a favorable way the trends you are citing above.  I, for one, have always been in favor of a national sales tax (which, by the way, was promoted by Republican presidential candidate Rand Paul).  Taxing income has always been a disincentive to industrial production and, as we've seen for decades, the big corporations with their expensive tax accountants know the ways to avoid paying taxes.

[renamerusk]

....I'm no fan of Big Corporate. But giving them tax incentives to shift profits and production back home has potential.
Is it perfect ? No.....But it is a start...... The future defense of our country depends on high tech production capabilities.

 

 So, (1) what percentage of Big Corporations'(BC) oversea income will remain states side do you think?; and (2) do you think the BC's will come together and agree to what percentage that they should all abide by and keep state side?

 

The future defense of our county depends upon the funds collected to pay for it.  If you can avoid taxation, then the bottom line is those who cannot will bear a greater share of the funding.