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Started By
Message
Corporate income tax is borne primarily by labor and workers, research shows.
Posted on 11/8/17 at 12:58 pm
Posted on 11/8/17 at 12:58 pm
Important to remember when debating tax reform.
Corporations do not pay taxes. They collect them.
11 recent studies find labor, through reduced wages, pay 45-75% of corporate tax burden
You cannot ignore this when figuring out what your after tax income will be if new tax bill gets through.
A 15% reduction in corporate income tax, if these studies are to be believed, will mean more money in your pocket.
Corporations do not pay taxes. They collect them.
11 recent studies find labor, through reduced wages, pay 45-75% of corporate tax burden
You cannot ignore this when figuring out what your after tax income will be if new tax bill gets through.
A 15% reduction in corporate income tax, if these studies are to be believed, will mean more money in your pocket.
15
Posted on 11/8/17 at 1:01 pm to HailHailtoMichigan!
No no no it'll go straight to the greedy corporate fatcats!
Posted on 11/8/17 at 1:10 pm to Centinel
Corporations do not pay taxes. They collect them.
Posted on 11/8/17 at 1:15 pm to HailHailtoMichigan!
quote:
A 15% reduction in corporate income tax, if these studies are to be believed, will mean more money in your pocket.
Maybe...
Then again, the biggest beneficiaries of the 2004 repatriation holiday cut spending and about 20k jobs.
Not saying you can compare a tax holiday to a permanent decrease in rate reduction, but I wouldn't take anything for granted.
Posted on 11/8/17 at 1:16 pm to HailHailtoMichigan!
I reject your reality and chose to substitute my own.
Posted on 11/8/17 at 1:17 pm to HailHailtoMichigan!
Never understood how people can grasp that tariffs add costs, then go on to believe income and corp taxes don't.
Our country is filled to the teeth w economic illiterates.
Our country is filled to the teeth w economic illiterates.
Posted on 11/8/17 at 1:18 pm to stuntman
Just like the government wants
Posted on 11/8/17 at 1:20 pm to HailHailtoMichigan!
My business collects sales taxes for the govt. Our customers pay them.
We are simply the middle man.
Corporate taxes are taken from corporate profits. Profits too come from the customer but in this case the govt, gets a percentage not the entire amount.
If corporate taxes are lowered and profits remain the same, corporations come out ahead, but what they do with additional profits is everything.
Will they give raises, invest it, improve their companies, etc. ?
Probably all of the above.
We are simply the middle man.
Corporate taxes are taken from corporate profits. Profits too come from the customer but in this case the govt, gets a percentage not the entire amount.
If corporate taxes are lowered and profits remain the same, corporations come out ahead, but what they do with additional profits is everything.
Will they give raises, invest it, improve their companies, etc. ?
Probably all of the above.
Posted on 11/8/17 at 1:25 pm to doubleb
quote:
If corporate taxes are lowered and profits remain the same, corporations come out ahead, but what they do with additional profits is everything.
Will they give raises, invest it, improve their companies, etc. ?
Probably all of the above.
But but but corporate fatcats!!!
Posted on 11/8/17 at 1:30 pm to HailHailtoMichigan!
Individuals ultimately pay all taxes. It's just a matter of which dollars you choose to tax as they flow through the economy, which in turn shifts the burden to different individuals. We can theoretically eliminate all corporate taxes, but to collect the same tax revenue and avoid more debt, we would have to increase tax collections elsewhere.
Posted on 11/8/17 at 1:35 pm to Centinel
quote:
Will they give raises
Wouldn't this also benefit the Government in that raises result in higher payroll/burden taxes and individual federal income taxes associated with said raise?
Posted on 11/8/17 at 1:43 pm to HailHailtoMichigan!
I think you are overstating what that article argues to the point of contradicting yourself.
How could the above be correct if:
instead of 100%?
From the article, where it refers to the current state of the body of literature:
It sounds like this guy is saying that corporations in fact pay a significant chunk, rather than it all being passed down, as the first quote above (by you) implies.
quote:
Corporations do not pay taxes. They collect them.
How could the above be correct if:
quote:
labor, through reduced wages, pay 45-75%
instead of 100%?
From the article, where it refers to the current state of the body of literature:
quote:
Correcting for the overstatement, and assuming such returns determine incidence, implies a business tax incidence that is roughly split 50-50 between capital and labor, more in line with the empirical literature.
It sounds like this guy is saying that corporations in fact pay a significant chunk, rather than it all being passed down, as the first quote above (by you) implies.
This post was edited on 11/8/17 at 1:45 pm
Posted on 11/8/17 at 1:54 pm to doubleb
quote:
If corporate taxes are lowered and profits remain the same, corporations come out ahead, but what they do with additional profits is everything.
Correct. What they actually do is everything. They don't have to give it to their employees. In fact, it is unlikely that they will chose to give it to their employees.
Let's say I will give you $1 million, no strings attached. Will you chose to give it away to people who have helped you? Or will you put it in your own pockets?
The idea that tax cuts get passed on to workers is kind of ridiculous.
Posted on 11/8/17 at 1:56 pm to TBoy
There's my corporate fatcats post I was looking for 
Posted on 11/8/17 at 1:58 pm to TBoy
quote:
Correct. What they actually do is everything. They don't have to give it to their employees. In fact, it is unlikely that they will chose to give it to their employees.
Let's say I will give you $1 million, no strings attached. Will you chose to give it away to people who have helped you? Or will you put it in your own pockets?
The idea that tax cuts get passed on to workers is kind of ridiculous.
A reduction in the corporate income tax increases the amount of capital available, which makes it cheaper to invest. When labor has more capital to work with, it becomes more productive, which usually is correlated with higher wages.
Posted on 11/8/17 at 1:59 pm to 90proofprofessional
Regardless of whether the tax is paid by labor or by shareholders, it is ultimately coming out of the pockets of somebody else.
Posted on 11/8/17 at 2:00 pm to HailHailtoMichigan!
Taking money from the government will cause essential services to be lost, elderly people will starve, and the sick will die in unpoliced, apocalyptic streets.
But taking money from the private sector will stimulate an economic revolution, cure aids, and bring peace to the Middle East.
-Liberals
But taking money from the private sector will stimulate an economic revolution, cure aids, and bring peace to the Middle East.
-Liberals
Posted on 11/8/17 at 2:06 pm to HailHailtoMichigan!
quote:
whether the tax is paid by labor or by shareholders
When you say "somebody else" what do you mean, then? Who remains for them to supposedly be targeting?
eta: i guess i will redundantly point out that shareholders = corporation, at least as far as profits go
This post was edited on 11/8/17 at 2:11 pm
Posted on 11/8/17 at 2:07 pm to HailHailtoMichigan!
quote:In what sense are shareholders of a corporation "somebody else"
Regardless of whether the tax is paid by labor or by shareholders, it is ultimately coming out of the pockets of somebody else.
Posted on 11/8/17 at 2:07 pm to HailHailtoMichigan!
My company will absolutely pass a large portion of tax savings on to employees in the form of higher bonuses and pay raises. It's why I am not too concerned about the impact on my personal tax liability from the personal income tax changes.
I happen to think my employer is well above average when it comes to employee compensation and the treatment of its employees in general, but I know for a fact it isn't the only employer who acts like that. Many individuals will benefit from their employer's tax savings. It pisses me off that folks are trying to kill this simply due to partisan leanings.
I happen to think my employer is well above average when it comes to employee compensation and the treatment of its employees in general, but I know for a fact it isn't the only employer who acts like that. Many individuals will benefit from their employer's tax savings. It pisses me off that folks are trying to kill this simply due to partisan leanings.
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