Bring back the 91% tax rate

[RickN]

Many business owners fit into this same category even when they have employees. Just because you have employees does not mean you have enough money to hire a janitor and can take off and play golf once a week. It is so amazing how people who have never owned a business, union or not can spout off how great it is to be a business owner and how easy they have it. They are only around 40 hours a week to see what is happening. What about the other 20-30 hours there or home trying to figure out how to make it work, doing paperwork, figuring out how to make it work the next day or week. What is that old saying about walking in someone else's shoes? How many employees out their unlock the door in the morning for the boss to walk in with them and lock the door after the boss walks out with them? Very, Very few.

Exactly!!!

I know when I had my business the wife and I put in far more hours then our employees, and every business owner I have ever known does the same. A few of the high dollar CEOs might get away without doing it but only because the board of directors set it up that way.

 

[Talacker]

if everyone was wealthy taxes wouldnt really matter would it? If everyone owned a business who would work?

Theres really a balance between how many business can be sustained with a particular number of workers. Too many workers and not enough jobs spells high unemployment. Too many business' and not enough workers is just as bad for the economy.

Everyone already IS a business owner. Only difference is the number of customers one has.

 

[inactive]

No, he is right on,

He's a bit off base, because:

That's the withholding rate for a bonus or overtime, not the marginal tax rates on your total income for the year. If your income increases enough to push you to a higher bracket, the higher rate is applied to the additional income earned; the "first" money earned is taxed at the "first" or lower rate.

For example, the first 25k of you income is taxed the same as someone who only earned 25k in total (deductions, credits, EIC etc. notwithstanding). The next monies are taxed at the progressively higher rate brackets.

The withholding is often higher on bonuses and overtime because many people allot their taxes to be exactly withheld over their normal paycheck, and that extra income is withheld higher in case it goes into a higher marginal rate bracket. If you don't hit that bracket, you get it back on your return filing the next year. This is a payroll thing, as in your employer or payroll processor, not necessarily the government.

tl;dr One check's Withholding rate != aggregate annual tax rate

 

[CHenry]

He's a bit off base, because:



tl;dr One check's Withholding rate != aggregate annual tax rate

Exactly....

 

[Shadowrider]

91% tax rates? Go ahead, then hide and watch to see what happens.

Aon has told analysts it expects to reduce its tax rate, which averaged 28% over the past five years, by five percentage points over time, which could boost profits by about $100 million annually.

Since 2009, at least 10 U.S. public companies have moved their incorporation address abroad or announced plans to do so, including six in the last year or so, according to a Wall Street Journal analysis of company filings and statements. That's up from just a handful from 2004 through 2008.

http://online.wsj.com/article/SB10000872396390444230504577615232602107536.html

 

[CHenry]

91% tax rates? Go ahead, then hide and watch to see what happens.

And following a tax hike we have to get rid of Free Trade. That was a huge mistake (part of the plan actually).

 

[farmerbyron]

And following a tax hike we have to get rid of Free Trade. That was a huge mistake (part of the plan actually).

So raise taxes to 91% and force companies to stay and take it up the a$$? So much for land of the free huh?

 

[CHenry]

So raise taxes to 91% and force companies to stay and take it up the a$$? So much for land of the free huh?

How much do you think they really pay? Less than I do!

Republicans have been kvetching today about the fact that, as of Sunday, the U.S. will have the highest statutory corporate tax rate in the world following a scheduled cut in Japan’s corporate tax. “The United States is a world leader in countless ways. ‘World’s Highest Taxes’ is a title we should give up as soon as possible,” wrote Sen. John Barrasso (R-WY) in a Fox News op-ed.
“This isn’t an April Fool’s Day joke; as of April 1, the United States of America will have reached the inauspicious position of having the highest corporate tax rate in the developed world,” said Sen. Orrin Hatch (R-UT) in a statement “I want America to be number one in many things, but having the highest corporate tax rate is definitely not one of them.”
This is constant refrain from Republicans, who then blame the supposedly high U.S. corporate tax rate for discouraging job creation. But as we’ve noted time and time again, while the U.S. has a high statutory corporate tax rate (meaning the rate on paper), U.S. corporations actually pay incredibly low taxes due to the ever-proliferating loopholes, credits, and deductions in the tax code and the use of overseas tax havens.
U.S. corporate taxes that were actually paid (the effective rate) fell to a 40 year low of 12.1 percent in fiscal year 2011, despite corporate profits rebounding to their pre-Great Recession heights. The U.S. both taxes its corporations less and raises less in revenue from corporate taxes than its foreign competitors:

Politico’s Ben White also pointed out that Japan has a value added tax, so it isn’t actually true that the U.S. will have the highest corporate tax rate on Sunday. As billionaire investor Warren Buffett has said, “it is a myth” that U.S. corporate taxes are high. “Corporate taxes are not strangling American competitiveness,” Buffett added.
Of course, it is theoretically possible to lower the U.S. corporate income tax rate while simultaneously raising revenue to help reduce the federal deficit by closing loopholes and cracking down on tax havens. But Republicans have absolutely no interest in that.
http://thinkprogress.org/economy/2012/03/30/456005/reminder-corporate-taxes-very-low/?mobile=nc

 

[Hobbes]

Well maybe if we stopped giving multinational corporations tax breaks to relocate to other countries that might be a good start.

The way it is now corporations can lay their workers off, relocate production to another country and headquarters to the cayman islands and write the whole thing off on their tax returns as a normal business expense in addition to avoiding taxes.

How come THAT doesn't get fixed in Washington DC? Who is it that owns the congress critters that determine the tax code?

 

[CHenry]

So raise taxes to 91% and force companies to stay and take it up the a$$? So much for land of the free huh?

91% tax rates? Go ahead, then hide and watch to see what happens.

Corporations are going to own this country some day (in the not so distant future) and this kind of thinking is just what they want from us. Its part of their plan.