If The Rich Would Pay Their Fair Share

[WyldemanATX]

One way Obama raised taxes on people that made under his 250k a year was he lowered the per mile deduction amount on people who travel for their job. The price of gas at an all time high it was like getting double taxed.

[F-Sharp]

The revenue increases during the Bush years were strictly related to sector bubbles that ultimately ended up bursting, as they always due. Almost all of it can be contributed to corporate tax receipts, stock market profits, and executive bonuses. Wealth that NEVER manages to trickle down to the other 95% of us. Also keep in mind, while these corporate goons were earning record profits, they managed to shed 8 million jobs from our economy, and sent almost 3 million of those jobs overseas.

"In 2006, according to the CBO, individual income tax revenue was 1,043.9 billion, an increase of 5 percent since 2001. Corporate tax revenue was 353.9 billion in 2006, a 134 percent rise from 2001. That’s a dramatic increase."

http://www.factcheck.org/taxes/supply-side_spin.html

Originally Posted by aroundaustin

The Bush tax cuts resulted in higher tax revenue with the all-time highest collection year of tax revenue being 2007. The deficit grew because of out of control spending. The revenue side of the equation improved once the tax cuts took full effect. Of course, that all ended when the housing bubble burst but that problem was not caused by cutting tax rates.

[DTorrchia]

Originally Posted by F-Sharp

Our real problems right now is the global economy, NAFTA, and good old fashioned greed. You could lower the tax rate to zero, and we'll still sit at 9% unemployment. Why? Because it's still cheaper to pay a worker in a third world country 1/2 or 1/3 of what American's make and not pay them benefits than it is to pay taxes and insurance on that labor here. GE is a perfect example. They've not paid on penny in taxes here for the last three years, and still sending jobs to China.

If they're already not paying any taxes, how exactly is cutting marginal tax rates supposed to provide incentive for companies like GE to bring jobs back?

This is probably one of the more accurate points I've read here. As long as foreign labor overseas is 10X cheaper than American labor, U.S. Corporations will continue to seek it out. No Tax break is going to fix that.
How do tariff's fit into this? If we were to charge U.S. companies that use overseas labor higher tariffs to bring those products back into the U.S.A. would that discourage them from going overseas for production and labor?
What role does the consumer play in all this? If the consumer continues to buy the cheapest product, irregardless of where it's made, then Companies will continue to use cheaper overseas labor, material, and production.
As cliche as it sounds, if Americans would buy more products that are "made in USA", it would create more jobs, keep more Companies here in the United States and stimulate our economy. ABC news did an interesting news story on this. The series came under some fire because ABC is owned by Disney and almost 100% of Disney's products are made in...China. That doesn't mean there's not some truth to the series. As longs as American consumers continue to pine for the cheapest products how can we blame Corporations for providing them just that?

[LaredoZeta]

We are depending on it.

Please stay fighting.

[F-Sharp]

Yes. The solution is not less taxes, but actually MORE taxes. The only way to level out this playing field is going to involve tarriffs. Until it's no longer cost efficient, no amount of tax breaks is ever going to bring our jobs back and provide incentive for businesses to actually do business here again. Make no mistake, this is the root of our economic problems. The downside of course is that we're will end up paying more for goods and services initially, at least until some competition for those goods and sevices is generated at home.

Any current GOP candidates making light of this situation? No.

Originally Posted by DTorrchia

This is probably one of the more accurate points I've read here. As long as foreign labor overseas is 10X cheaper than American labor, U.S. Corporations will continue to seek it out. No Tax break is going to fix that.
How do tariff's fit into this? If we were to charge U.S. companies that use overseas labor higher tariffs to bring those products back into the U.S.A. would that discourage them from going overseas for production and labor?
What role does the consumer play in all this? If the consumer continues to buy the cheapest product, irregardless of where it's made, then Companies will continue to use cheaper overseas labor, material, and production.
As cliche as it sounds, if Americans would buy more products that are "made in USA", it would create more jobs, keep more Companies here in the United States and stimulate our economy. ABC news did an interesting news story on this. The series came under some fire because ABC is owned by Disney and almost 100% of Disney's products are made in...China. That doesn't mean there's not some truth to the series. As longs as American consumers continue to pine for the cheapest products how can we blame Corporations for providing them just that?

[WyldemanATX]

If it was up to F-Sharp are slogan in the US would be Bring your Business here and we will promise to raise taxes on you until you see no more growth in your Business. I can see them all start to run to the US with that kind of incentive.

Reward success do not punish it. Liberal logic is mind numbing...

[DTorrchia]

Originally Posted by Wyldeman30

If it was up to F-Sharp are slogan in the US would be Bring your Business here and we will promise to raise taxes on you until you see no more growth in your Business. I can see them all start to run to the US with that kind of incentive.

Reward success do not punish it. Liberal logic is mind numbing...

I'm confused on this one Wyldeman. Are you FOR American Businesses continuing to use cheap overseas labor? If not, what's your solution for keeping American Businesses and labor here? I think it's a valid point that GE paid no taxes and yet continues to create more and more jobs overseas where the labor is cheaper. So it can't just be a Corporate taxation issue.
I consider myself Conservative in most matters but I can't see Corporations willingly giving up on labor that's 10X cheaper than it is in the USA. What exactly do you mean by "rewarding success" when that success is generated by moving production overseas, using overseas labor and then bringing those goods made overseas back and paying low tariffs?

[WyldemanATX]

Do not reward these businesses that take shit overseas for cheap labor. Put higher tariffs on those companies, but do not raise taxes on all US businesses. I for one am fed up with companies outsourcing tech support to the middle east.

[austin_voy]

The problem I have with the Fair Tax idea is that a large chunk of my retirement is in Roth IRAs and 401k's. Income from that is supposed to be tax free, but Fair Tax eliminates that. Yeah, it's not as if the government has never broken a promise before. (because there's no finger smilie)

[aroundaustin]

401K distributions are currently taxed. Contributions into a Roth IRA are taxed up front but distributions are tax free.

Regarding tariffs, Cain's plan of reducing the embedded income tax will reduce to cost of the products produced here making them more competitively priced both here and overseas. This somewhat achieves the objective of a tariff without actually having one.

[Booth]

Originally Posted by aroundaustin

401K distributions are currently taxed. Contributions into a Roth IRA are taxed up front but distributions are tax free.

Regarding tariffs, Cain's plan of reducing the embedded income tax will reduce to cost of the products produced here making them more competitively priced both here and overseas. This somewhat achieves the objective of a tariff without actually having one.

When the cost of production goes down, how many businesses pass those savings along to consumers? All of them, most of them, a few of them? This is not intended to be a rhetorical question - I'd really like to know.

[harkontume]

This is so funny.. so much discussion on taxes.
Taxes and tax rates are NOT the problem.
If we taxed everything over 250k at 100% we would not reduce the deficit.

We have a spending problem people.

And we have a crazy administration that thinks the answer to spending is taxing enough to make everyone poor. Except Federal Employees who make more the the average Private Sector Employee.
Unionized Federal workers should be a Crime.
It is just one step away from bribes.

But no one talks about that.

[F-Sharp]

"Liberal logic is mind numbing..."

Originally Posted by Wyldeman30

Do not reward these businesses that take shit overseas for cheap labor. Put higher tariffs on those companies, but do not raise taxes on all US businesses. I for one am fed up with companies outsourcing tech support to the middle east.

[theaustinescorts]

Originally Posted by F-Sharp

The marginal tax rate under Clinton was 39%. During that period we experienced record growth and job creation. Under Nixon, the marginal tax rate was 70%, and it remained above 50% until Reagan took office.

This should stand as proof that marginal tax rates have little impact on the Republican myth that higher taxes = less jobs. Our real problems right now is the global economy, NAFTA, and good old fashioned greed. You could lower the tax rate to zero, and we'll still sit at 9% unemployment. Why? Because it's still cheaper to pay a worker in a third world country 1/2 or 1/3 of what American's make and not pay them benefits than it is to pay taxes and insurance on that labor here. GE is a perfect example. They've not paid on penny in taxes here for the last three years, and still sending jobs to China.

If they're already not paying any taxes, how exactly is cutting marginal tax rates supposed to provide incentive for companies like GE to bring jobs back?

http://online.wsj.com/article/SB1000...611823972.html

Better get used to this new economy because we are in a race to the bottom.

You are correct in that none of the tax issues the Republicans are obcessing over will improve anything. These issues of marginal tax rates on individuals have no effect on growth or job creation.

The only thing which will return the economy to growth with high wages is to address the hemoraging of wealth from large trade deficits. And I'm speaking of returning the US to growth we had in the 1946-71 period...not the modest growth of the 1980s and 1990s which was due to population increase and the stimulative effect of government spending/debt.

Several things need to be done to bring trade into balance, but one thing which can be done is to ELIMINATE ALL CORPORATE TAXATION, and re-distribute their tax burdon to others.

This will make US corporations more competitive as well as provide them with a real incentive to stay home.

It will also eliminate the ridiculous "double taxation" of dividend earners having to pay taxes on their dividends in addition to what their corporations had to pay.

The things corporations go through in order to avoid taxes now are just ridiculous and benefit no one except tax lawyers and accountants.

[F-Sharp]

Key portion to that statement, "...and re-distribute their tax burdon to others." The Teabaggers among us are already screaming SOCIALISM! They either do it, or the government needs to do it through taxation and social programs. Either way, it NEEDS to be done.

Originally Posted by theaustinescorts

Several things need to be done to bring trade into balance, but one thing which can be done is to ELIMINATE ALL CORPORATE TAXATION, and re-distribute their tax burdon to others.