Although it is easy to think lowering the current corporate tax on 35% would be a good plan, in theory this should further stimulate the economy and perhaps cause increased expansion in job growth, but corporations are not completely embracing this idea. The problem is many businesses are not corporations in the traditional sense, small and mid sized businesses tend to be sole proprietors and LLC based business and are not included in these tax breaks. These small business owners would not have the same advantages to grow as the large corporations would have. The reason why they would not have the same tax advantage is because they do not file income tax as a corporation, instead business income and expense is claimed as part of the owners personal income tax. Unfair? What do you think?
That is a good point to get across My401k. Most businesses are not corporate owned since they do not have the sufficient funds to be a corporation. Low taxes would not allow small businesses to make it. I mean the small mom and pop store does not average with as much sales as a big corporation like Google Enterprises. When you have a good flow of customers then it would be fine if the amount of sales would make up for the low taxes. If you do not get much business then you would be in some trouble if you are only having low taxes. It just really depends on the business so it is a bit of a toss up.
Well the current corporate tax rate is insanely high compared to other OECD countries. It also is a drag on the economy and hiring. While there are plenty of issues that need to be attended too, why not look at this rate? We need to stay competitive and massive taxation and regulation is not doing anything for that.
Oh I agree it is a drag on the economy and hiring all right, many of the corporations that are getting this tax deductions are the same ones that took American jobs to foreign countries to better their bottom lines. So tell me why exactly why they should get a break? They need to make even more money out of our economy? The very economy they helped sideline because they only wanted to contribute so far? Nope sorry I think it would be better to look at breaks for the smaller businesses that are serving the people on all levels. they have employees here, and they are selling and producing product here. Now before anyone even says it- I am for a world market, people should be able to buy and sell where ever they want. The only way IMHO you will ever see the playing field level is if we get back to supporting things domestically, You want to build product to sell in the U.S just like other countries do? You should have to have the same tariffs and customs issues those companies have, not a break because you build here and house call centers and tech support someplace else at a wage that would be considered almost slave labor.
I cannot disagree with the fact that smaller businesses are the ones who really need the tax breaks. What I do not know (mainly because I have very little understanding of how very small corporations work in the USA) is why they can't register as a corporation? In any case, 99% of tax breaks are good... especially corporate tax.
A business is a private entity. The problem with this entity is that it requires someone to run it. Therefore I do not see where the problem is if the owner who runs the entity pays tax as part of personal income tax. The owner makes the business especially for the small run family business.
This is long overdue. We have a strange tax code. It's not equal across the board. We have to lower the rates across the board on both businesses and individuals, and cut all the loopholes and deductions. It will be a net positive for the economy. Yes, some corporations get out of taxes, but in my opinion there shouldn't be a corporate tax to begin with. Or an income tax. But those aren't going to be eliminated anytime soon so I'll settle for reductions. Hopefully this gets done.
The corporate income tax should be eliminated. Corporations are taxed, and the individuals who own them and work for them are also taxed. I am a small business owner. Taxes on capital gains, dividends, and interest on investments in non-tax advantaged investment accounts aside, money earned by the business from assets under management and from any performance fees charged to clients is taxed once. Money I pay myself as "President" to live on is taxable income as well. I have two employees, plus others I hire for accounting, legal, and printing services, others for cleaning the office, etc.
No one ever talks about removing government subsidies. Government subsidies do more harm then corporate tax. A better idea would be to remove government subsidies and use the money to improve US infrastructure. The amount of railway lines and paved roads in USA is decreasing, while the reverse holds true for China. As an investor which country will you stick your money in ?
Yup, so effectively you are being taxed twice. I think a similar model to Canada would be useful, there residents pay a smaller amount of taxes for income from corporations registeredin Canada since the corporation has already been taxed. It doesnät completely remove double taxation but it does reduce the effect.