You raise a corporation's expenses, they look for ways to cut costs (e.g. labor, quality) or increase income (e.g. raising prices)
Answered By: Tyler M - 8/16/2008 |
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Basically corporations are like individuals. If you tax individuals enough, they will not spend any money because they will have none left after paying for their basic survival. Individuals are out to make a profit in a sense to when they work, but it manifests itself different for obvious reasons.
Taxing corporations excessively helps nobody. They just cut jobs here or raise prices on consumers. We already have the second highest corporate tax rate in the world so its no wonder corporations look for ways around taxes including outsourcing and charging higher prices.
Answered By: Ryan - 8/16/2008 |
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J, did you know the banking industry made like 400 billion dollars in 2007? The Telecom companies (Sprint, MCI, Verizon) grew by 16? The High Tech industries grew at over 14? Why does everyone blame the oil companies for everything? Did you know that for the first 2 quarters of 2008, Exxon-Mobil paid 69 Billion dollars in taxes? Exxon-Mobil, BP, Chevron are OIL companies. That is what they produce and it is a needed commodity. By the way, they are working on alternative energy sources.
Answered By: aiminhigh24u2 - 8/16/2008 |
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Yes & if Obama wins it only gets worse- no matter what his supporters think. Had we not had the Iraq war- the economy would be great right now. Lower taxes bring in more and more new businesses- which brings more jobs, better pay, lower prices (due to more competition). I am not that pleased with McCain myself but he is definitly better than Obama! Just keep researching & thinking things through like you have. Really great question btw.
Answered By: Beverly S - 8/16/2008 |
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History shows that lower taxes on corporations actually brings in more revenue and production. Every economist has critisized Obama's plan to raise taxes.
Answered By: tys7344 - 8/16/2008 |
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Funny how govt's spend every dime of $$ and still want more.They fund things that are a pure waste of money and yet want more. The govt's job is not to do anything but our security and promote the well-being of the citizens. JOBS.!! Not welfare, funding arts, bailing out irresponsible people-banks-countries-illegal aliens.. Taxing will only kill the little guy.
Answered By: Dennis P - 8/16/2008 |
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There is plenty to be conflicted about. Taxing the giants does not help because eventually they pass the cost down to us. The oil companies are another matter. They are monopoly's and being such the governments has controls to stop them. The problem is they do not want to do anything to offend them. We give them special privileges and do not enforce any regulations on them. Peace
Answered By: PARVFAN - 8/16/2008 |
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It isn't wise to raise taxes on an economy that is already heading into a recession. No one wins!!
Answered By: extremefaithinhim15666 - 8/16/2008 |
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The amount of tax they pay would be relevant to the amount of profit they make.
It isn't only the oil industry which pursues cheap labour, cheaper overheads etc. Most companies/corporations do this. Global economy, it's supposed to give in return for what it takes. Only they are running out of sky to pollute and land to fill with our toxic material.
Would they really want to look for alternative sources of energy, new technology which doesn't pollute.
Would be great if it was a concerted effort by joint arrangement to fund all possibilities.
Answered By: ABBABABE - 8/16/2008 |
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The GOA this week announced that over 80?f corporations don 't pay taxes. So if they are not paying them now why would they pay them if we lower them?
Taxes can be spun so many ways. This is how it breaks down. 80?f the taxes collected comes from the middle class and poor. Individuals that make less then 250.000 a year. That is where most of the revenue comes from. If your single and make more then roughly 52,0000 a year you are in the 44?ax bracket.
Now understand that Rich people don't get paid wages. They get paid in Stock options. When the sell the Stock they pay just 15?n taxes.
Warren Buffet (in case you don't know who he, is in the top 10 rich people in the country) paid less in Dollars then is assistance did last year. She gets paid a wage he gets stock options. Warren himself said this is what is wrong with our tax system.
They ship jobs over seas do to loop holes in our tax system. Also the lower wages. Most Corporations are not loyal patriotic Americans. They look at their bottom line. That is it. What is sad is that our current system gives them tax breaks for shipping our jobs over seas.
If you really want to understand this issue. Read "Take this Job and ship it" Written by Byron Dorgan. It was a best sell last year.
Edit. There are less corporate headquaters in America so of course the numbers who don't pay are down. Also the the top 6?f the wealthy have 78?f all the nations wealth. So they should pay for the most of the tax.
I know allot of rich people and the more money they have the less they worry about taxes. The past 30 years of "trickle down" economic policy has made the middle class shrink, made our jobs go over seas, and we have a growing poor class.
Answered By: CH - 8/16/2008 |
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You're on the right track!
Businesses ARE out to make profits- but that is not inherently evil! Profits typically go back into the business...ultimately leading to lower prices, higher wages, more jobs, and perhaps research on alternative energy sources!
More government control (socialism) leads to higher taxes, higher prices, and lower quality (I know, I currently live in a more socialistic country).
Answered By: janie - 8/16/2008 |
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The real story is that Bush cut the taxes on corporations and wealthy but the jobs were shipped overseas anyway. It is the nature of capitalism; wealthier wants to get more wealthier. The question is that the US got to pay its debts and there is no other way except to raise the taxes on reach people.
Answered By: No More - 8/16/2008 |
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This is very simple. Oil companies, like any company pay taxes. Taxes are ALWAYS passed on the the consumer. Raise taxes for oil companies, pay more at the pump, simple. Force oil companies to pay consumers $1000 dollars, (Obama plan) oil companies raise the price of fuel to cover the cost.
ANY raise to a companies costs, be it labor, cost of goods or taxes is passed to you and me.
Answered By: wally59 - 8/16/2008 |
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Its a question of balance ....
How much do you pay vs. what you get in return..
Thats why there is so much class divide between Democrats and Republicans..
Answered By: Tony H - 8/16/2008 |
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Answered By: Comrade Coleman - 8/16/2008 |
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If you had a credit card and ran up a ten trillion dollar tab, do you suppose that it would pay itself off.
Taxes are going to go up eventually, do you feel that the poor and the middle class should have to pay the tab when it is the wealthy and the corporations that benefited?
If you mention "recession" on this board, you will receive a number of responses saying "there is no recession" and a handful gloating about how they are going to "fill their Escalade with premium and drive around aimlessly because they can afford to".
Not everyone is feeling the pinch because our government has been using our tax dollars to make the few wealthy beyond your dreams.
So...should we pay their tab?
Answered By: brown9488@att.net - 8/16/2008 |
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"CH" left out a lot of information from that GAO report. Yes, 23?f large corporations did not pay income taxes; but the poster neglected to mention that that number in down from 38?n 2001.
"CH" is also inaccurate in ascerting that most income taxes are paid by the lower and middle classes. The Congressional Budget Office reports that the top 20?n income pay over 60?f income taxes; that does not mention corporation taxes, capital gains, inheritance taxes, and other levies.
People who are paid in other ways, such as stock options, still have to report it as income.
If Warren Buffet feels that the tax code is unjust, he should report all of his own earnings as income and pay the higher rate. Of course, he will not do that. Buffet is all for a huge tax increase on anybody earning over $250,000 per year; he can afford it, but many farmers, ranchers, and small business owners can not. As the small business owners are squeezed out, vultures like Buffet can swoop in and take what is left. Ask farmers, ranchers, and small business owners in Nebraska what they think about Warren Buffet, the Omaha billionaire; most think that he is worse than the robber barons of the 19th century.
Answered By: wichitaor1 - 8/16/2008 |
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Corporations pay no taxes. They pass it on to the consumer. Obama stated that the oil companies make $4000 a minute in profit, he left out that they pay $14,000 a minute in taxes. He also neglected to state that the Government takes 50 percent in royalties from the oil recovered from their wells before it is refined or marketed and then taxed again.. The best way to solve the problem is to elect people that will stop wasteful spending. Sen. Feinstein two months ago announced that they will privatize the Senate cafeteria because it has only broken even twice in the last 30 years, not made a profit, but only broken even. The Senate cannot make the payroll or pay the employee benefits, albeit they have increased their own retirement benefits by 14 percent a few months ago. These are the people that want to tell corporations how to run their business that the Government taxes to death yet that cannot even run a cafeteria right under their noses. Speaker Pelosi's cost for her taxpayer funded private jet to fly herself and family to San Francisco and D.C. every weekend is over $100,000 every weekend.
Answered By: ohbrother - 8/16/2008 |
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