General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsSomeone suggested last week that instead of taxing corporations we
should increase the tax on dividends and interest. I am wary of that. But I like the idea of increasing taxes on dividends and such. Think of all those rich retired boomers to come? The ones who have a million in stocks.
Warpy
(111,254 posts)but the income from it makes the difference between penury and a comfortable if restricted existence.
What we really need is a Wall Street transaction tax. Get that and we can talk about surtaxes on the truly wealthy.
applegrove
(118,635 posts)government.
RC
(25,592 posts)They need it to live on?
unblock
(52,205 posts)if you earn money in one state but live in another, generally speaking, you pay taxes on your income in the state where you earn it. then you report ALL your income to the state you live in, and owe taxes based on the entire amount, but with a credit for the amount you paid to the other state.
they should do pretty much the same for corporations at the federal level. corporations that either are incorporated in the u.s. or do business in the u.s. should have to report all their world-wide profit. they owe taxes based on the entire amount, with a credit for taxes paid to other countries.
this way they have no incentive to transfer profits around, no incentive to move their incorporation to a different jurisdiction, no incentive to park money overseas, no incentive to do anything other than normal business.
applegrove
(118,635 posts)forcing corporations to report world-wide profit, the corporations will have somewhere to hide their 'head offices'.
unblock
(52,205 posts)if the rule is, you do business in the u.s., you have to report all world-wide profit, then it doesn't matter where the company is headquartered or where they earn their profit.
i suppose it might be possible to then defraud the u.s. while hiding profit in a country with that country's blessings, but that's a long-term high-stakes gamble. appropriate penalties for such fraud and diplomatic pressure on non-compliant nations should do the trick.
right now companies do that sort of thing but it's legal. making it criminal would change things quite a bit, even if it can't always be enforced.
KittyWampus
(55,894 posts)applegrove
(118,635 posts)rid of corporate taxes and instead up the taxes on capital gains to make up for that loss. There will be quite a lot of rich seniors who could afford more in taxes.
LeftInTX
(25,285 posts)In 20082012, the tax rate on qualified dividends and long term capital gains is 0% for those in the 10% and 15% income tax brackets. Long term capital gain is 15% in upper brackets.
After 2012, dividends will be taxed at the taxpayer's ordinary income tax rate, regardless of his or her tax bracket.
After 2012, the long-term capital gains tax rate will be 20% (0% for taxpayers in the 10% and 15% tax brackets).
So, it did go up.
I don't have a million in stock, so I have no idea how it will effect those living off their dividends. Although it seems pretty fair since we pay income tax on social security.
randome
(34,845 posts)1. A minimum corporate tax as a percentage of profit.
2. Break up all companies that reach a certain size determined by a permanent Financial Committee.
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applegrove
(118,635 posts)to customers" or "corporations will just move off shore if you tax them" all of a sudden reeks of gas-light-ing. Saw it on M*A*S*H I'm watching reruns of. A group pretend what is real is not real and get the target to doubt themselves and their accurate take on reality. That is what we have gotten from the business community for the last 20 years. A wall of 'rejection of what is real to people' in favour of the chosen favoured reality of 'no taxing on corporations'. Why do I fall for stuff like that?
quaker bill
(8,224 posts)ask which taxes are not "passed on". The correct answer is that all taxes are passed on. I make jewelry and sell it retail at art festivals.
I pay taxes on my sales and income. My prices are higher because I need to pay taxes. You (generically) buy jewelry with income that is taxed. Because you pay taxes, instead of buying the $50 piece, you buy the more affordable $30 piece. The dollars I get from you have been taxed, the products you buy from me have been taxed, the supplies I purchase to make the jewelry were taxed. At some point you get that it does not make a difference where the taxes are collected, because it doesn't on average, it all just smears out to some level in and on everything.
All money is taxed until it disappears, then new money is created by government spending. It is just the way it works.