More Obamanomics

Subject: RE: More Obamanomics

I was watching MSNBC and they just stated that Obama wants to lower corporate tax rates and that the Repubs are fighting him on it?

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Subject: RE: More Obamanomics

WTF? I keep trying to read stuff like that, but my damn logical brain and its desire for deductive reasoning keeps getting in the way. I need to just stop looking, but, damn, it's the proverbial trainwreck. What a clusterfach our country has become.

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Elite

6387

Subject: RE: More Obamanomics

Bush 2.0

What completely boggles my mind isn't that his detractors keep hammering him... it's that his supporters keep supporting him. I have absolutely no explanation for it.

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Subject: RE: More Obamanomics

Originally posted by powerman

Bush 2.0

What completely boggles my mind isn't that his detractors keep hammering him... it's that his supporters keep supporting him. I have absolutely no explanation for it.

Not all of them. He's lost quite a bit of support, but it is surprising to me he hasn't lost more.

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Subject: RE: More Obamanomics

Lets see, 28 percent for corps. but 39.9 for small businesses filing as an individual (as a majority of small businesses do). That almost seems fair. Must not get as much campaign cash from small business as from corps.

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Subject: RE: More Obamanomics

If my small business taxes dropped, I'd plow that money right into R&D.

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Boise, ID

Subject: RE: More Obamanomics

The last few mornings CBS has been running a special report on the morning news about how bridges, roads and "infrastructure" are falling apart in this country.

I said to my wife, just watch later this week someone is gonna decide we need to stimulate the economy by working on our infrastructure. Oh and here it is.

The media and the politicians are so predictable these days it is ridiculous. Even more ridiculous though is the people who still eat it up.

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Slower Than You

9566

Cracklantaburbs

Subject: RE: More Obamanomics

Originally posted by Aarondb4

The last few mornings CBS has been running a special report on the morning news about how bridges, roads and "infrastructure" are falling apart in this country.

I said to my wife, just watch later this week someone is gonna decide we need to stimulate the economy by working on our infrastructure. Oh and here it is.

The media and the politicians are so predictable these days it is ridiculous. Even more ridiculous though is the people who still eat it up.

That's what they said the Stimulus was for. Except that it wasn't.

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Champion

6993

Chicago, Illinois

Subject: RE: More Obamanomics

I know a few places that got it. At least they had the thanks to Obama sign when they did the road work. Maybe we just need more work.

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Champion

6993

Chicago, Illinois

Subject: RE: More Obamanomics

I know a few places that got it. At least they had the thanks to Obama sign when they did the road work. Maybe we just need more work.

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Subject: RE: More Obamanomics

I just want to clarify that corporate taxes are double taxation of income so the 28% vs 40% is misleading as distributions paid from after tax corporate earnings are taxed at the individual rate. if my math is right the effective rate on a corporate distribution at the 28%/40% bracket is about 57%.

In my opinion, if you want to get investment back into the American economy than eliminate corporate income tax and the double tax penalty.

Edited by Jackemy1 2013-07-31 1:29 PM

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Omaha, NE

Subject: RE: More Obamanomics

Originally posted by Jackemy1 I just want to clarify that corporate taxes are double taxation of income so the 28% vs 40% is misleading as distributions paid from after tax corporate earnings are taxed at the individual rate. if my math is right the effective rate on a corporate distribution at the 28%/40% bracket is about 57%. In my opinion, if you want to get investment back into the American economy than eliminate corporate income tax and the double tax penalty.

It's crazy when you sit back and calculate how much the money is taxed for business owners.

Company turns a profit and the company gets taxed at 28%, owner takes a distribution of the profit and gets taxed at 50%+ (federal/state) income tax. Then when the owner goes to spend that money she gets nailed with a 7% sales tax for any items purchased or much more on homes and such.

And people wonder why "rich" people use tax loopholes.

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6387

Subject: RE: More Obamanomics

Originally posted by tuwood

Originally posted by Jackemy1 I just want to clarify that corporate taxes are double taxation of income so the 28% vs 40% is misleading as distributions paid from after tax corporate earnings are taxed at the individual rate. if my math is right the effective rate on a corporate distribution at the 28%/40% bracket is about 57%. In my opinion, if you want to get investment back into the American economy than eliminate corporate income tax and the double tax penalty.

It's crazy when you sit back and calculate how much the money is taxed for business owners.

Company turns a profit and the company gets taxed at 28%, owner takes a distribution of the profit and gets taxed at 50%+ (federal/state) income tax. Then when the owner goes to spend that money she gets nailed with a 7% sales tax for any items purchased or much more on homes and such.

And people wonder why "rich" people use tax loopholes.

I don't wonder at all... the government set it up so they do not have to pay if they do "X"... so they do "X". If I could, I would. When the wife was going to school, we took every credit we could get. Now with our business... she just sent off a check for $10K for taxes. $4K of that was quarterly exise tax imposed by Obamacare. 10% of tanning right off the top.... does not matter that people go out in the sun... let's just skim 10% off the top of an industry

Edited by powerman 2013-07-31 10:09 PM

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Subject: RE: More Obamanomics

Originally posted by powerman

Originally posted by tuwood

Originally posted by Jackemy1 I just want to clarify that corporate taxes are double taxation of income so the 28% vs 40% is misleading as distributions paid from after tax corporate earnings are taxed at the individual rate. if my math is right the effective rate on a corporate distribution at the 28%/40% bracket is about 57%. In my opinion, if you want to get investment back into the American economy than eliminate corporate income tax and the double tax penalty.

It's crazy when you sit back and calculate how much the money is taxed for business owners.

Company turns a profit and the company gets taxed at 28%, owner takes a distribution of the profit and gets taxed at 50%+ (federal/state) income tax. Then when the owner goes to spend that money she gets nailed with a 7% sales tax for any items purchased or much more on homes and such.

And people wonder why "rich" people use tax loopholes.

I don't wonder at all... the government set it up so they do not have to pay if they do "X"... so they do "X". If I could, I would. When the wife was going to school, we took every credit we could get. Now with our business... she just sent off a check for $10K for taxes. $4K of that was quarterly exise tax imposed by Obamacare. 10% of tanning right off the top.... does not matter that people go out in the sun... let's just skim 10% off the top of an industry

I'm just glad you are contributing your "fair share" and have "skin in the game". Remember folks desperately need those Obama Phones!

Veteran

134

Subject: RE: More Obamanomics

Originally posted by Jackemy1

I just want to clarify that corporate taxes are double taxation of income so the 28% vs 40% is misleading as distributions paid from after tax corporate earnings are taxed at the individual rate. if my math is right the effective rate on a corporate distribution at the 28%/40% bracket is about 57%.

In my opinion, if you want to get investment back into the American economy than eliminate corporate income tax and the double tax penalty.

This may be an ignorant statement, and I welcome your correction, if I am wrong. It seems, however, that your math assumes 100% of corporate taxable income is distributed to the shareholders, to be taxed as personal income. But many corporations make no dividend payments, and others pay out only a percentage of net income. Is that not so? So (while I am personally of the opinion that the corporate tax should be abolished) I think it is likely that the total tax on corporate income is probably much less than 40%.

Scott

Pro

9391

Omaha, NE

Subject: RE: More Obamanomics

Originally posted by scott319

Originally posted by Jackemy1 I just want to clarify that corporate taxes are double taxation of income so the 28% vs 40% is misleading as distributions paid from after tax corporate earnings are taxed at the individual rate. if my math is right the effective rate on a corporate distribution at the 28%/40% bracket is about 57%. In my opinion, if you want to get investment back into the American economy than eliminate corporate income tax and the double tax penalty.

This may be an ignorant statement, and I welcome your correction, if I am wrong. It seems, however, that your math assumes 100% of corporate taxable income is distributed to the shareholders, to be taxed as personal income. But many corporations make no dividend payments, and others pay out only a percentage of net income. Is that not so? So (while I am personally of the opinion that the corporate tax should be abolished) I think it is likely that the total tax on corporate income is probably much less than 40%. Scott

I'll add my interpretation. Obviously if income is carried over and not distributed then it's not going to be double taxed, but if you individually own a C-Corp then every penny that you do take out of the business is double taxed.

"the IRS data shows that the effective U.S. tax rate for all corporations averaged 26 percent between 1994 and 2008"
 http://taxfoundation.org/sites/taxfoundation.org/files/docs/sr194.pdf

So, assuming you're the sole owner of a large corporation that has $10M of taxable income after deductions then your business has to pay $2.6M in taxes. Then lets say you only distribute $5M of those profits for the year, you will have to pay the highest tax rate at the federal and state level for your personal income. If you live somewhere like California then your total personal income tax rate could easily be in the upper 50's which is in addition to the 26% that was already taxed at the corporate level.

So, I think you are technically correct about the $2.4M left in the company as not being "double taxed", but I don't think that was the point of Jackemy1's statement.

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