Should Big Corporations Pay the Taxes They Owe?

http://truth-out.org/buzzflash/commentary/should-big-corporations-pay-the-taxes-they-owe

Carl Icahn, noted corporate predator and takeover specialist who made billions of dollars in corporate deals, has recently begun pushing a charitable cause involving a group of people who, through no fault of their own, are being forced out of America. Syrian migrants who've lost everything, you ask? Or maybe Central American children fleeing the horrors of drug wars? Nope, none of those foreign sob stories for Icahn. Rather, he weeps for the incomprehensible suffering of a small tribe of Americans, namely: the CEOs of several U.S.-based multinational corporations.

You see, Carl is fronting for CEOs of a small group of huge multinational conglomerates who are demanding that Congress drastically slash the taxes they owe on foreign sales of their products. This "reform" would let them escape paying most of the $600 billion in taxes that U.S. law assesses on some $2.6 trillion in profits they've been hiding in foreign bank accounts and offshore tax havens. Three-fourths of these hidden profits belong to only 50 enormously profitable corporations.

In a recent heart-wrenching op-ed, he wails that poor superrich chieftains of such profiteering giants as Pfizer pharmaceuticals are having to move their corporate domains abroad, having been driven out of the USA by "our uncompetitive tax code." These American-raised corporations have been raking in enormous profits on foreign sales, but the CEOs have whined that those profits should be exempt from U.S. taxation, since they're taxed by the countries where their products are sold.

In fact, their "double taxation" claim is a fraud, for most of that $2.6 trillion in profits is subject to zero in taxes. These rank corporate tax dodgers are starving America's essential public services of $600 billion they owe us taxpayers, yet Icahn sobs in print that they are the victims.

If these trillions are brought back home, he explains, they'll be taxed — so, don't you see, this "forces" CEOs to desert the U.S., moving their corporate citizenship to a place that doesn't make them pay for public services.

Putting the $600 billion they owe into America's public treasury would fund a lot of education, infrastructure repair, green energy, social services, etc. that our people desperately need. But Icahn & co. claim that forgiving this corporate tax debt "would allow companies to reinvest ... in the United States, creating thousands of jobs." Notice that verb, "allow." Theycouldput this tax windfall into job-creating and U.S. investments — but Icahn does not want Congress to require any sort of patriotic use of the money.

Stop the cruelty, Carl says. America must let the CEOs "repatriate" their foreign bounty by essentially forgiving the taxes they owe on it. That way, the corporations get to keep the money, and America gets to keep the corporations.

Carl even asserts that the corporate elites are "completely justified" in leaving America if they aren't given this tax boondoggle. After all, he says, CEOs "have a fiduciary duty to enhance value for their shareholders."

Haven't we seen this movie before? Ah, yes: It was in the 2008 tragi-comic, multitrillion-dollar bailout of Wall Street banks and big corporations. They said that if Washington rescued them, they would then invest in Main Street and in middle-class jobs. We did; and they didn't. They lied then, and the Icahn hucksters are lying to us now.

I would trust a pack of coyotes to guard my little herd of lambs before I'd trust a pack of corporate hucksters to "reform" America's tax code. Congress has a moral imperative to serve not the few who are big corporate shareholders but to enhance value for all people — for the common good. For information and action, go to www.AmericansForTaxFairness.org.

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Who would you guess that corporations get the money from to pay corp taxes?

I highly doubt you'll find that answer on any of the soros propaganda sites.

PkrBum wrote:Who would you guess that corporations get the money from to pay corp taxes?

I highly doubt you'll find that answer on any of the soros propaganda sites.

The vast majority of businesses are price takers who can't arbitrarily set prices as they see fit.  Meaning, when taxes increase,  the vast majority of businesses can't simply increase their prices in equal proportion - or, perhaps, at all - so as to completely offload that new burden onto consumers.

You know, the spring term has already began, though most junior colleges allow late registration during the first two weeks of course work.  Perhaps there is still time for you to enroll in ECO-101:  Introduction to Economics.

boards of FL wrote:

PkrBum wrote:Who would you guess that corporations get the money from to pay corp taxes?

I highly doubt you'll find that answer on any of the soros propaganda sites.

The vast majority of businesses are price takers who can't arbitrarily set prices as they see fit.  Meaning, when taxes increase,  the vast majority of businesses can't simply increase their prices in equal proportion - or, perhaps, at all - so as to completely offload that new burden onto consumers.

You know, the spring term has already began, though most junior colleges allow late registration during the first two weeks of course work.  Perhaps there is still time for you to enroll in ECO-101:  Introduction to Economics.

Where does every dime come from that is paid out by any corporation?

You're saying corporations cannot raise their price because of competition. When all competition has the same tax increase, of course it will be passed on to the consumer.

For YOUR benefit, here is an Economics course for the private citizen. On line and FREE. Go for it.

http://econfaculty.gmu.edu/wew/misc/EconomicsForTheCitizen.pdf

Markle wrote:

boards of FL wrote:

PkrBum wrote:Who would you guess that corporations get the money from to pay corp taxes?

I highly doubt you'll find that answer on any of the soros propaganda sites.

The vast majority of businesses are price takers who can't arbitrarily set prices as they see fit.  Meaning, when taxes increase,  the vast majority of businesses can't simply increase their prices in equal proportion - or, perhaps, at all - so as to completely offload that new burden onto consumers.

You know, the spring term has already began, though most junior colleges allow late registration during the first two weeks of course work.  Perhaps there is still time for you to enroll in ECO-101:  Introduction to Economics.

Where does every dime come from that is paid out by any corporation?

You're saying corporations cannot raise their price because of competition.  When all competition has the same tax increase, of course it will be passed on to the consumer.  

Your rocking chair is over there in the corner, Ole' Man Markle.

Corp tax comes from the evil capitalist tree... and anybody that doesn't believe that with all their heart is a nazi.

YEA TEAM..!!

Once AGAIN BoardsofFL has no answer! I am shocked, SHOCKED I SAY!

Markle wrote:Once AGAIN BoardsofFL has no answer!  I am shocked, SHOCKED I SAY!

There is nothing for me to answer.  I said that the vast majority of firms are price takers - meaning, they can't arbitrarily set prices or entirely pass on tax increases to customers.  

Your response to that was effectively "Nuh uh".

I can concede that even price takers will increase prices if they are in some market where profit margins are fairly low, or if corporate profits in general are low.  It can happen.  Though if we look to corporate profits today, we see that they are breaking records every quarter.  In an environment like that, corporations are much less likely to adjust their pricing in response to a tax hike because the marginal benefit of increased prices would be outweighed by the marginal cost of angered consumers who will opt for a competitor's lower priced offerings.  The reasoning behind that is that price takers generally provide goods or services that are easily substitutable with other goods or services.

I have four corporations. One is a subchapter S and is incorporated into our 1040. The taxes charged by bracket on me has little or no impact of my pricing of the product. The other three are straight up C corps and never once have I made a pricing decision at customer level based on taxes. It is much more important to take advantage of depreciation, credits, and purchases which are much more immediate. My taxes have been lower for the last 30 years than they were for the first 10 years and it is clear some people around here are saying things after listening to propaganda and have never prepared a corporate return.

To answer Mr. Markle........tell me why I would care about a tax rate where I am paying less than ever when I do not raise prices when more immediate and higher priced factors like leases, cost of goods, and payroll are light years more important and all are applied to gross profits.......I do not think some folks around here have taken a business course. If I was paying higher taxes each year for the last thirty years it is obvious that at some point like taxes on real estate on a triple net, you may have to make a business decision......these catch phrases about who pays corporate taxes are so sophomoric to a business person that it is funny.........Now for the 1% who are stealing America.....I get it, but for small business owners join the real world.....we are paying less taxes than we used to pay.

2seaoat wrote:I have four corporations.  One is a subchapter S and is incorporated into our 1040.  The taxes charged by bracket on me has little or no impact of my pricing of the product.  The other three are straight up C corps and never once have I made a pricing decision at customer level based on taxes.   It is much more important to take advantage of depreciation, credits, and purchases which are much more immediate.  My taxes have been lower for the last 30 years than they were for the first 10 years and it is clear some people around here are saying things after listening to propaganda and have never prepared a corporate return.

To answer Mr. Markle........tell me why I would care about a tax rate where I am paying less than ever when I do not raise prices when more immediate and higher priced factors like leases, cost of goods, and payroll are light years more important and all are applied to gross profits.......I do not think some folks around here have taken a business course.   If I was paying higher taxes each year for the last thirty years it is obvious that at some point like taxes on real estate on a triple net, you may have to make a business decision......these catch phrases about who pays corporate taxes are so sophomoric to a business person that it is funny.........Now for the 1% who are stealing America.....I get it, but for small business owners join the real world.....we are paying less taxes than we used to pay.

Of course, if you are not making a profit, you have nothing to worry about in paying taxes.

More to the point, may I remind you that this is the topic. "Should Big Corporations Pay the Taxes They Owe?"

Salinsky wrote:It's almost as if our more conservative forum members have no knowledge of basic economic concepts at all.

For YOUR benefit, here is an Economics course for the private citizen. On line and FREE. Go for it.

http://econfaculty.gmu.edu/wew/misc/EconomicsForTheCitizen.pdf

Will you please tell us exactly WHO provides the money to pay corporate taxes?

Markle wrote:

Salinsky wrote:It's almost as if our more conservative forum members have no knowledge of basic economic concepts at all.

For YOUR benefit, here is an Economics course for the private citizen. On line and FREE. Go for it.

http://econfaculty.gmu.edu/wew/misc/EconomicsForTheCitizen.pdf

Will you please tell us exactly WHO provides the money to pay corporate taxes?

The people who contract for that corporation's services and the workers who make it happen. Without that, the corporation will, in time, evaporate like yesterday's news.

2seaoat wrote:...it is clear some people around here are saying things after listening to propaganda...

Truth!

Denial is one of the required attributes to being a Progressive. You must be a professional at lying with a straight face, be able to change directions like an all star receiver, have instant answers ready for a question that has not been asked.

STILL not a single Progressive with the cojones to answer an extremely simple question, a question so simple to answer even a child with a lemonade stand could answer.

Because it's basically a consumption tax for useful idiots... leftists wouldn't knowingly support that.

STILL not a single Progressive with the cojones to answer an extremely simple question, a question so simple to answer even a child with a lemonade stand could answer.

Come on kiddies, step up and at least take a shot at the answer. Even if you have to hold your nose and admit the truth.

Any company or corporation that wishes to remain viable in the marketplace will find a way to make a profit...or it will go belly up. The largest corporations have a recent history of paying their high ranking officers even if they don't produce. A good example is Carly Fiorina, who made quite a lot of money simply by going away, after she laid off 30,000 people. Another good example is Bain Capital, which destroyed companies and gutted their assets. There are many more examples of corporate malfeasance from which to choose...take your pick in this age of "anything goes" in the realm of anonymous corporate donations to candidates who simply suck up dollars and return benefits to their "supporters." This is the modern GOP...every single candidate, top to bottom, including Trump, whose donors like to hide in the shadows. It is a dark day in America when people flock to Trump rallies...or somehow believe that a man like Trump will do anything for them.

http://www.washingtonexaminer.com/bill-to-fire-federal-workers-who-owe-back-taxes-fails-in-house/article/2527273

Bill to fire federal workers who owe back taxes fails in House

The GAO calculated this year that 312,000 government contractors owe $3.5 billion in back taxes and some have been delinquent for years despite owning yachts, vacation homes and luxury cars.

Among federal workers, 107,000 people own more than $1 billion in back taxes, according to 2011 IRS data, which is the most recent available.