American corporate tax rates: Are they high or are they low?

[fairsheet]

I think we all know by now, that they're both. Our marginal rates - the "official" and "published" - ones are some of the highest in the modern world. Yet, our effective rates - what corporations actually pay - are some of the lowest in the modern world.

And, I think we all know that it's well past time we addressed this difference, for a whole host of reasons. The GOP was a big fan of corporate tax reform until Pres. Obama said he liked the idea. So, we probably won't be seeing any action on this at least until after the 2016 elections.

"Reform" should be about closing the gap, as that gap respresents a whole lotta friction (wasted dough). Closing the gap will require both lowering marginals and raising effectives. But...when we finally get around to addressing this one, let's remember one very important detail........

Lower effective rates on corporations is MORE socialistic, since it moves the taxation decision farther away from the free market and towards the people - the taxpayers in general - who may not be a party to the transaction. Higher effective rates on corporations, is MORE in line with the principles of the free market. Put simply....

Let's say Apple has to pay a higher corporate tax rate. If they do - of course that increased taxation will be passed on to the consumer. But then .... as a consumer, I get to decide whether or not I want to pay that tax.

 

[Boltlady]

I think we all know by now, that they're both. Our marginal rates - the "official" and "published" - ones are some of the highest in the modern world. Yet, our effective rates - what corporations actually pay - are some of the lowest in the modern world.

And, I think we all know that it's well past time we addressed this difference, for a whole host of reasons. The GOP was a big fan of corporate tax reform until Pres. Obama said he liked the idea. So, we probably won't be seeing any action on this at least until after the 2016 elections.

"Reform" should be about closing the gap, as that gap respresents a whole lotta friction (wasted dough). Closing the gap will require both lowering marginals and raising effectives. But...when we finally get around to addressing this one, let's remember one very important detail........

Lower effective rates on corporations is MORE socialistic, since it moves the taxation decision farther away from the free market and towards the people - the taxpayers in general - who may not be a party to the transaction. Higher effective rates on corporations, is MORE in line with the principles of the free market. Put simply....

Let's say Apple has to pay a higher corporate tax rate. If they do - of course that increased taxation will be passed on to the consumer. But then .... as a consumer, I get to decide whether or not I want to pay that tax.

While I certainly cannot speak authoritatively about corporate taxes since I have other people take care of the ones for my small company, which is a type C corp, it does seem that corporate tax rates are a jumbled mess that don't seem to apply to the really big companies. They manage to keep a lot of money offshore and in many cases, we pay them.

It's the 'we pay them' part that I find absolutely obscene. The very people who complain about welfare for po' folks who really need it don't seem to have any problem with corporate welfare. It doesn't seem to matter which party is prominent when it comes to making sure that it's not the really big guys who pay the taxes.