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View Diary: Corporations add big bundle to overseas hoard. Expect to hear more cries for lowering their tax rate (49 comments)

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  •  So if the marginal rate is 35% and the effective (3+ / 0-)

    is only 13-15%, how do you plan to close the gap?

    Further, is the discrepancy as large in other countries?

    Currently, the businesses that get fucked on taxes are the ones that don't avail themselves of the sort of tax shenanigans we see in larger firms.

    Eliminating the gap between nominal and effective would give a big boost to businesses that dont' engage in aggressive tax avoidance.

    •  When the tax rate gets lowered... (7+ / 0-)

      ...to 25%-28%, and the loopholes are closed (hahaha) so that the new figure IS the effective rate, you can bet your savings that it won't be long before the corporate megaphones are again bellyaching that they are paying too much. Their ultimate goal is zero, just as the goal for much of the right wing is a flat tax. They keep edging as the "left," like people engaged in a losing tug of war, steadily lose ground on the matter. Instead of digging in our heels defensively, we need to be arguing for movement in the opposite direction.

      Don't tell me what you believe, show me what you do and I will tell you what you believe.

      by Meteor Blades on Fri Mar 08, 2013 at 10:06:37 AM PST

      [ Parent ]

      •  I think with the financial tools available, (0+ / 0-)

        and with the global connectedness of the worlds economy, expecting to collect taxes above global levels is a pipedream at best.

        You aren't ever going to get more taxes from these people or these businesses, so the question needs to be (IMHO) less "How can we get more taxes?" and more "How can we write tax laws that everyone pays their taxes equally (not flat tax, but eliminating tax avoidance as an effective strategy)"

        If nominal and effective rates were the same, it would be a very large boost to businesses that don't play the tax games.

    •  The effective tax rate calculation is seriously (1+ / 0-)
      Recommended by:
      VClib

      flawed in the above chart.

      If factors out legitimate tax costs such as option expensing (which just shifts the tax liability from the company to the employee for no net loss in tax revenue), some types of depreciation, and includes profits made outside the country (while not including these profits for other countries) and other technical matters.

      The failure of our tax code is very deep in other ways that have effect of lowering employment, lowering wages and reducing GDP growth while also being ineffective in tax revenues.

      The most important way to protect the environment is not to have more than one child.

      by nextstep on Fri Mar 08, 2013 at 02:55:10 PM PST

      [ Parent ]

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