Talking About More Taxes … Again

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Never mind that is something he consistently talks about when he gets a round tuit and he has a round tuit in his pocket at all times.

There is no figuring out this man who seemingly rode in from nowhere, doesn’t know sic ‘em from whoa, and changes his mind like most people change socks.  It won’t take you long to read the story below … just long enough to know you don’t , er still don’t, like his so-called solutions.

The following comes from The Weekly Standard

The Blog

Obama: Top Tax Rate Should Be 28% for Corporations, 40% for Small Business

2:37 PM, Jul 30, 2013 • By JOHN MCCORMACK
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The New York Times reports that President Obama is reviving an old proposal to lower the corporate tax rate from 35 percent to 28 percent (and 25 percent for manufacturers). Obama’s push to lower the corporate tax rate to 28 percent comes less than a year after he raised the top individual income tax rate, paid by many small businesses, to 39.6 percent.

Official portrait of Barack Obama

In a speech delivered Tuesday afternoon, Obama did not explain why he thinks it’s a sound economic idea to raise the top marginal tax rate on small businesses but lower it for corporations.

“Right now, our tax code is so riddled with wasteful loopholes that many companies doing the right thing and investing in America pay 35%, while the corporations with the best accountants stash their money abroad and pay little or nothing at all,” Obama said, according to a the text of his prepared remarks. “I’m willing to simplify our tax code in a way that closes those loopholes, ends incentives to ship jobs overseas, and lowers rates for businesses that create jobs right here in America.”

Neither Obama’s Tuesday speech nor his February 2012 corporate tax reform plan explained in detail which loopholes would be closed. During the 2012 presidential campaign, the Obama campaign hammered Mitt Romney for not saying which loopholes he would close to pay for a proposed reduction in individual income tax rates.

Big Government Wants To Know: Do US Corporations Pay Their “Fair Share?”

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And we want to know who the profits belong to?  According to some who visit this blog, we are not wise enough to determine at this point, but we do believe the profits after fair taxes paid to the US Government, should accrue to the corporations.  Let us see what Big Government via Ben Shapiro has to say:

As usual, the left is wondering whether corporations pay their “fair share.”  This time, it seems they may have a point.  As Time magazine reported yesterday, a recent Wall Street Journal study of Congressional Budget Office statistics showed that American corporations paid an effective tax rate of 12.1% last year.  That’s the lowest number in four decades, despite a nominal tax rate that runs 35%, second only to Japan’s 39.5%; if you include state corporate taxes, America is now number one in the world.

Now, focus your eyes on the last link in the above quoted paragraph.  Click on the link, read the material and then come back.  Perhaps it was not what you expected; perhaps you were already well versed on the information found in the linked article.  How about this then from Shapiro’s article:

So why the low effective tax rate?  According to both the Journal and Time, it’s due to a corporate tax break set into the stimulus package, which allowed corporations to use an accounting trick: they could take write-offs on capital investments all at once rather than over time.  Typically, you take a tax write-off as the value of a good depreciates – if you buy a computer, it loses value over time, and you write that in your tax returns.  Under the stimulus package, you were allowed to basically write off the whole purchase.  The result was huge write-offs for corporations.

Now, normally, this wouldn’t be a bad thing.

We’d expect corporations to take that money and dump it back into the economy by hiring and producing new products.  But that hasn’t happened – largely because this is a tax break rather than a permanent tax situation.  In other words, at some point, we’re going to go back to the old system, taxes are going to hike, and the corporations are saving up for a rainy day.

Pay attention to a few key phrases or words in the two paragraphs above:

  1. stimulus write-offs
  2. all at once
  3. result was huge write-offs
  4. all at once
  5. normally not a bad thing
  6. we would expect corporations to dump the money back into economy by hiring and producing new products
  7. that hasn’t happened because this was a tax break
  8. at some point, we’re going back to the old system, taxes will hike, and the corporations are saving up for a rainy day

Got that?  Yes I know, the short clipped phrases sound or look like a bunch of Occupiers following their cheerleaders while making silly little hand-signals.  Nevertheless, you get the idea.  I could quote the rest of the article, but then you’d be depending on me to bring the gist of the article to you.  I’d much rather have you read it for yourself.  The link is just below … enjoy.

Whose Profits — Not Yours