Obama says he plans to INCREASE corporate tax rates. It is clear from that statement that he -- and those who support him -- do not understand how corporate taxes work.
Corporations are not people... they don't stick money in bank accounts to fund retirement.
Corporations are business entities that have two principle accounting categories: expense and income.
Corporations are not people... they don't stick money in bank accounts to fund retirement.
Corporations are business entities that have two principle accounting categories: expense and income.
Expenses are the costs of producing goods or services that people (you and me) buy. Expenses include payroll, benefits, rents, wholesale materials needed in the production of the goods/services, debt payments (you know, for the money they borrowed to tool the plant, buy a building... things like that. Oh, and taxes. Corporations also pay back shareholders -- people like you and me -- who INVESTED their money in these companies in the form of dividends. Companies also must re-invest in new equipment, technology, research & development (R&D), expanding manufacturing or into new product lines... they also must have funds available (or be able to borrow) to pay their expenses (see above) when sales are slow.
If you raise expenses but don't dare raise the price of your product in order to remain competitive with other producers, you have less income. For most companies, they have a fixed (known) income requirement (see expenses above). If you need a fixed amount of money you have two ways of raising it: raise prices or cut expenses.: close factories, reduce payroll (and the corresponding benefit and tax costs), cut salaries and reduce benefits... See where that s going??
Raising tax rates on corporations (whether overtly or by closing "loopholes"), will not generate new businesses nor create new jobs and will raise the price of goods and services (a back door tax on the consumer.) And history has shown us (look around) that raising taxes costs American jobs and leads to inflation. Look here for the history of corporation tax rates... coupled with higher interest rates... then go look for the periods of worst inflation... see a pattern??
And yes, I understand that this is a big oversimplification of corporate taxes... I understand debt-financed vs equity-financed segments, etc. But raising taxes in any form is never good for US businesses... and cutting them (by however small an effective percentage) is ALWAYS good for the economy... for businesses and those that work for them (that'd be you and me) and the consumers (that'd also be you and me).
Capitalism is not evil. Businesses -- large or small -- are not evil. Making a profit is not evil, either.
I will vote for John McCain because he will keep tax rates low for small entrepreneurial businesses, cut the corporate tax rate from 35 To 25 percent, allow 1st year deduction for equipment and technology investments, establish a permanent tax credit for wages for Research & Development, ban Internet taxes, and ban new cell phone taxes.John McCain's policies are GOOD for business and will create jobs... which means that McCain's policies are good for Americans and good for America.
If you raise expenses but don't dare raise the price of your product in order to remain competitive with other producers, you have less income. For most companies, they have a fixed (known) income requirement (see expenses above). If you need a fixed amount of money you have two ways of raising it: raise prices or cut expenses.: close factories, reduce payroll (and the corresponding benefit and tax costs), cut salaries and reduce benefits... See where that s going??
Raising tax rates on corporations (whether overtly or by closing "loopholes"), will not generate new businesses nor create new jobs and will raise the price of goods and services (a back door tax on the consumer.) And history has shown us (look around) that raising taxes costs American jobs and leads to inflation. Look here for the history of corporation tax rates... coupled with higher interest rates... then go look for the periods of worst inflation... see a pattern??
And yes, I understand that this is a big oversimplification of corporate taxes... I understand debt-financed vs equity-financed segments, etc. But raising taxes in any form is never good for US businesses... and cutting them (by however small an effective percentage) is ALWAYS good for the economy... for businesses and those that work for them (that'd be you and me) and the consumers (that'd also be you and me).
Capitalism is not evil. Businesses -- large or small -- are not evil. Making a profit is not evil, either.
I will vote for John McCain because he will keep tax rates low for small entrepreneurial businesses, cut the corporate tax rate from 35 To 25 percent, allow 1st year deduction for equipment and technology investments, establish a permanent tax credit for wages for Research & Development, ban Internet taxes, and ban new cell phone taxes.John McCain's policies are GOOD for business and will create jobs... which means that McCain's policies are good for Americans and good for America.
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