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The Oracle Speaks.

Woolleybugger

Woolleybugger

Mayor
"The interesting thing about the corporate rate is that corporate profits, as a percentage of GDP last year were the highest or just about the highest in the last 50 years. They were ten and a fraction percent of GDP. That’s higher than we’ve seen in 50 years. The corporate taxes as a percentage of GDP were 1.2 percent, $180 billion. That’s just about the lowest we’ve seen. So our corporate tax rate last year, effectively, in terms of taxes paid for the United States, was around 12 percent, which is well below those existing in most of the industrialized countries around the world. So it is a myth that American corporations are paying 35 percent or anything like it…Corporate taxes are not strangling American competitiveness."

The truth hurts conservatives, it really does.
 
From where do these corporate profits orginate? More and more it's from overseas. Why is that?

"Lack of clarity on a U.S. deficit-reduction plan, trade policy, regulation, much needed tax reform and the absence of a long-term plan to improve the country's deteriorating infrastructure do not create an environment that provides our customers with the confidence to invest," Caterpillar CEO Doug Oberhelman said

http://www.thefiscaltimes.com/Artic...orate-profits-a-bust-in-jobs-wages.aspx#page1

So you have a growing disconnect between profits and GDP which can be solved by cutting deficits, streamlining tax policy and assisting corporations, which will cause them to hire and expand here in the States.

Do the opposite, and what would you expect to happen? Or did Warren Buffett not tell you that?
 
Caterpillar is making money in China hand over fist. They are going there because that is where the business is and China insists on having as much of the products they buy made within China as possible. The profits they earn globally should be taxed nationally which is what Buffet is saying. The idea that you can be an American based company and earn money globally but not pay into the US tax base is one that needs to die a quick death. Escaping federal taxes in this manner has become a game with multi-nationals whose only motive is their own bottom line. The nation that supports them and their executives lifestyles demands that they pay into the system that provides them with all the benefits at a cost. If the CEO of Caterpillar wants to move his HQ to Shanhai, he can drag his family over there with him. As long as he is based here, his gross profit should be taxed here. Accounting gimmicks aside, this is nothing more than a ploy to pad their own pockets without bearing any responsibility for anyone, anything and any nation at all. Either you are an American company or you are not. Pick your place and live your choice.
 
Sometimes it gets tiring spending my day teaching you folks the truth...

WASHINGTON—U.S. companies are booking higher profits than ever. But the number crunchers in Washington are puzzling over a phenomenon that has just come into view: Corporate tax receipts as a share of profits are at their lowest level in at least 40 years.

Total corporate federal taxes paid fell to 12.1% of profits earned from activities within the U.S. in fiscal 2011, which ended Sept. 30, according to the Congressional Budget Office. That's the lowest level since at least 1972. And well below the 25.6% companies paid on average from 1987 to 2008.

http://online.wsj.com/article/SB100...15330.html?mod=WSJ_hp_LEFTWhatsNewsCollection
 
And at this point, from what my link tells you, that would be a poor idea. Unemployment would climb into the teens. Your side must stop discouraging hiring and expansion here instead of pushing these corps to make their money overseas.
You're thinking all stick and no carrot.

That's why we're in the state we're in.
 
This is from 2008, can't find an update, but it pretty much lays out the corp tax scam. From your figures, they made more and paid less...in a bad recession.

The U.S. corporate tax burden is smaller than average for developed countries.[1] Corporations in 19 of the member states of the Organization for Economic Co-operation and Development paid 16.1 percent of their profits in taxes between 2000 and 2005, on average, while corporations in the United States paid 13.4 percent.

US corporate taxes in perspective
Click to expand...
 
They left to find cheap labor, but cheap is not always good. Labor costs in China are rising fast.

Big U.S. manufacturers moved their production out of the country too quickly over the past decades and now see a competitive advantage in building up their footprints back home, top executives said on Monday.

The chase for lower-paid workers drove the migration, which resulted in employment in the U.S. manufacturing sector falling by 40 percent from its 1980 peak. But big companies including Boeing Co (NYSE:BA - News) and General Electric Co (NYSE:GE - News) are now finding that the benefit of lower wages can be offset by higher logistics and materials costs.

"We, lemming-like, over the last 15 years extended our supply chains a little too far globally in the name of low cost," said Jim McNerney, chief executive of world No. 2 planemaker Boeing. "We lost control in some cases over quality and service when we did that, we underestimated in some cases the value of our workers back here."

After the lemming exodus
Click to expand...

For GE, the decision to reopen the Louisville plant, which had been closed for decades, was based on the fact that it's no longer as expensive to hire more workers in the U.S.

Jim Campbell, president and CEO of the GE Appliance and Lighting unit, said that when you factor in currency fluctuations and rising wages in emerging markets, "when we look out five to six years, the United States is becoming a lot more attractive."

That trend is likely to continue, said Harold Sirkin, a senior partner at Boston Consulting Group.

According to BCG, Chinese labor costs are rising about 15% to 20% a year. That makes producing goods in China not nearly as cheap as it used to be. For many manufacturers, that narrowing is enough to tip the balance back to U.S. plants.

Made in USA
Click to expand...
 
corporate profits are at an all time high, that's common knowledge to everyone but Dino.
 
Yes, he's right about that. US tax policy is designed on high nominal rates that the pols can then sell exemptions to. Which is why REAL conservatives favor flat taxes with no deductions that hit everyone the same. Then you have no incentives to game the system.
 
gabriel said:
high transportation costs will further limit offshoring
Click to expand...

Caterpillar has already announced they are bringing jobs back to the US. Too expensive to ship those big rigs.

I am sure they will continue to build in China to sell there. Cannot blame them for that.
 
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