All of us from top to bottom or bottom to top would be better off if corporations were not taxed at all. Zero taxes for corporations would mean money for the IRS, not less. Better paying jobs and cheaper merchandise for consumers.
How do you figure it would lead to better paying jobs? Corporations have a duty too their shareholders. Capitalists have been given a wide open road to demonstrate commitment to their employees. Each and every time they have failed. Do you have faith in them working for the "common good"? I certainly don't.
True, companies try to lower their costs any way they can, including keeping wages low. But adding taxes to their cost only makes the problem worse. The more they are taxed the less they have to pay employees
If there were no taxes there would be no reason to "buy" politicians. A companies three biggest expenses are Labor, Materials, and Taxes. Eliminating taxes would also lower the cost of materials and would make it easier for a company to compete with foreign competitors. This would result in a rise in market share for their products which would result in hiring more people.
Sheldon, In a perfect world you would be correct. There is no way any corporation is going to trickle anything down to labor unless forced to. Labor has always been nothing but a line item to be cut and manipulated. The scumbaggery of corporate world has been proven. Just two years ago Mr. Trump gave corporate America the biggest tax gift in history. We we told that the savings would be used to boost salaries, and bring manufacturing back to America. Corporate response? A few got a paltry raise or even more despicable, a one time bonus, many low paying no future , no benefit, jobs were created. Companies payed down debt, gave massive compensation packages to their executives and officers. All the time bolstering new offshore manufacturing capacity shored up and supported by the Commerce Department.,a government entity that actively works against the good of the American populace.
I think I might be missing something here. Small businesses with less than 500 employees dominate the U.S. market to the point of nearly 99%. Now, how many of those small businesses have gone public is another question but to the question of lowering or deleting taxes on businesses in general, I see no problem with it. When most people think “corporations” the general population automatically starts thinking of the larger corporations that are pulling in huge amounts of money both gross and net but not thinking of the smaller businesses and corporations which are the dominant grouping that will profit from a tax break to help grow their business so they can be a large corporation some day. The economy prior to this panic attack was doing extremely well in that more employers (both large and small businesses) were hiring more employees and whilst raising production they saw a higher gross and the government and states saw more revenue via taxes. Employed people not only pay taxes via their paycheck but they also pay taxes on the widgets and commodities they buy which also raises the demand on widgets and commodities. Bottom line is that if a business didn’t have to pay 20K in taxes, that business could hire someone for that 20K which would, if the employer’s net profit % is adjusted properly, would pay for himself or herself many times over in the course of producing whatever product the business is in.
I am not going to agree nor disagree with your assessment because you already know that the number 20K was merely an easy mathematical example to visualize. I could have used 2, 200, 2K or 200K as an example and the same point would have been made but again, you already knew that.
If that is all you gleaned from my post in regard to business and corporate taxation then either I did a very poor job of explaining my point or you did a half baked job of reading it.
Just an example: A fairly large corporation employees 100,000 workers with plants in several states. Those workers average $50,000 per year. The average tax paid by individuals is 14.5 percent. That comes to $7,250 per employee. Times 100,000 workers. The employees and the company also pay social security taxes. when taxes are so high the company has to move to another country to be able to compete then there are nearly 100,000 Jobless people drawing unemployment pay, taking from the government rather than paying to it. Of course this is the extreme situation but it sure has happened a lot. And of course all the 100,000 jobs are not lost to foreign countries. The top company executives will still have their jobs. So where do we draw the line about how much to tax? Zero tax would be the best for all.