Babalu Blog: Interesting News for the Lefty Wankers Out There

August 15, 2008

Interesting News for the Lefty Wankers Out There

Hey you dumb ass lefty wankers who insist that American corporations don't pay enough taxes? Well other than Japan, the US has the second highest corporate tax in the world. You wonder why some companies go over seas? So the One, and his San Fran Dominatrix Pelosi simply want to tax corporations even more, and individuals more too. Well read this for an eye opener.

Here's an excerpt:

The average European nation has tax rates on corporate income 10 percentage points lower than the U.S., but those countries on average raise 50% more as a share of GDP in corporate taxes than does the U.S., according to a 2007 study by the Treasury Department. Ireland with its 12.5% rate captures a higher share of its GDP (3.4%) in corporate taxes than the U.S. does (2.5%) with its 39.3% rate.
To correct this revenue dearth, Barack Obama and Democrats in Congress are proposing to pry more tax money out of U.S. companies that have profitable affiliates outside the U.S. Mr. Obama is also shamelessly taking the Byron Dorgan line that the problem is venal U.S. CEOs rather than the nutty U.S. tax code.

One proposal would tax foreign profits when they are earned, rather than waiting until the dollars are brought back to the U.S. This may raise more revenue in the short term, but it would also accelerate the trend of U.S. companies moving entirely offshore, or being bought out by Asians and Europeans so they can escape onerous U.S. taxes.

John McCain has proposed cutting the 35% federal corporate tax rate to 25%. That's a good start, but even that would leave the U.S. with a combined state and federal rate nearly five percentage points above the global average. With corporate tax rates falling around the world, and with its damage to investment increasingly obvious, abolishing the U.S. corporate income tax should be on the table. Senator Jim DeMint of South Carolina and Congressman Paul Ryan of Wisconsin have proposed replacing the corporate tax with a value-added consumption tax. We worry about a VAT turning into a runaway money machine for government, but something has to give on the corporate tax.

Every month that goes by without tax reform, America is a relatively less attractive place to do business. Over the past 18 months, nine of the 30 most developed nations and 20 countries world-wide -- from Israel to Germany to Turkey -- have cut their corporate tax rates. Nations are slashing rates to attract capital and jobs from the U.S., and the tragedy is that our politicians keep making it easy for them.

Posted by Cigar Mike at August 15, 2008 09:55 AM

Comments

Tell us something we didn't know. Even with all the facts out there, these dumb fucks keeping drinking the juice.

Posted by: readytoshoot at August 15, 2008 11:05 AM

whatever they're drinking pales in comparison to what they are smoking

Posted by: Cigar Mike Pancier at August 15, 2008 11:07 AM

I believe they are doing both. How else can one explain their lack of "little grey cells" as Hercule Poirot would say.

Posted by: Firefly at August 15, 2008 03:59 PM

corporations don't pay ANY taxes -- their customers pay it all.

Posted by: Scott at August 15, 2008 06:54 PM

That corporate tax rate does not necessarily signify corporate taxes paid to the gov't. Corporate taxes on an income statement is an accounting provision that is not always cash related (by cash, I mean taxes paid to the govt). I'd venture to say that a good percentage of the companies with the corproate tax rates you mention above don't come close to paying that much in actual taxes.

Posted by: gumercindo at August 16, 2008 10:19 PM