Will Liberals Listen to Clinton?

Since corporate tax rates is but one facet to growth lets look at some others. High labor rates and benefits, high land costs, high raw material costs, high transport costs, etc. Now since the only one that is directly under the control of the Feds is taxes, yep raising those should really end the recession and firmly start the depression.

Since this discussion was about Clinton's opinion on corporate tax rates, you should maybe start your own discussion. Further, since corporations are sitting on the largest cash reserves in history, the corporate tax rate will have little effect on the economic recovery, but would help to reduce the deficit and lower personal taxes.

Go back to Pinhead cam moderator wannabe.

HEARTLESS wrote: Go back to Pinhead cam moderator wannabe.

Brilliant response, as usual. I was just following CriticalBill's directive to stay on point.

Okay, raise taxes, put a minute dent into the debt and destroy any job growth.

Please show how eliminating tax loopholes for corporations will destroy job growth. In regard to job growth vs. economic recovery vs. corporate tax rates, I found this article very interesting:

Workers' wages and benefits make up 57.5 percent of the economy, an all-time low. Until the mid-2000s, that figure had been stable — about 64 percent through boom and bust alike.
"The spoils have really gone to capital, to the shareholders," said David Rosenberg, chief economist at Gluskin Sheff + Associates in Toronto.
Corporate profits are up by almost half since the recession ended in June 2009. In the first two years after the recessions of 1991 and 2001, profits rose 11 percent and 28 percent, respectively.
And an Associated Press analysis found that the typical chief executive of a major company earned $9 million last year, up a fourth from 2009.
Driven by higher profits, the Dow Jones industrial average has staged a breathtaking 90 percent rally since bottoming at 6,547 on March 9, 2009. Those stock market gains go disproportionately to the wealthiest 10 percent of Americans, who own more than 80 percent of outstanding stock, according to an analysis by Edward Wolff, an economist at Bard College.
But if the Great Recession is long gone from Wall Street, it lingers on Main Street:
• Unemployment has never been so high, 9.1 percent, this long after any recession since World War II. At the same point after the previous three recessions, unemployment averaged 6.8 percent.
• The average worker's hourly wages, after accounting for inflation, were 1.6 percent lower in May than a year earlier. Rising gasoline and food prices have devoured any pay raises.
• The jobs that are being created pay less than the ones lost in the recession. Higher-paying jobs in the private sector made up 40 percent of the jobs lost from January 2008 to February 2010 but only 27 percent of the jobs created since then.


Read more: The economic recovery turns 2: Feel better yet? - The Denver Post http://www.denverpost.com/commented/ci_ ... z1RSw9h3GL
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So with these dastardly corporate tax rates, corporate profits have risen to record highs, while the middle class worker continues to lose on their wages and salary, while corporate CEOs are making record salaries.

In the 1970's, the ratio between corporate CEO's compensation and workers were about 40 to 1, that rose to 100 to 1 in the 1990's, and now it has hit 300 to 1.

There is an interesting idea currently floated out there in regard to setting the corporate tax rate. Eliminate all loopholes and create a flat rate that is then multiplied by the ratio of CEO to worker's compensation. That let's a company set it's own tax rate. If it desires a low tax rate, then simply narrow the ratio between the CEO's compensation and the worker's compensation.

Here is another interesting factoid involving corporate tax loopholes. Currently hedge fund managers are able to classify money paid to them (in the form of bonuses) as investment income, even though it goes directly to the managers. This allows them to be taxed at the capital gains tax rate instead of their personal tax rate, i.e., 15%. If you or I receive a bonus, that is taxed as compensation not as a capital gain. Closing this single loophole and treating them as you or I, then $4 BILLION would be raised. This affects about 25 individuals who have this perk. and earned $22 BILLION collectively between them that was then taxed at 15%. Eliminating this special perk for these billionaires that is not available to you or I would reduce the deficit by $44 BILLION over 10 years.

It's too bad that the Republicans refuse to eliminate these special perks for billionaires that are not available to the average worker, but instead want to reduce the deficit on the poor and middle class.


http://www.alternet.org/story/151479/if ... t_/?page=1

I completely agree with closing loopholes, but again, not all companies are the same. Some can take advantage of loopholes and special deductions while others can not...just like individuals. If all companies could use the same loopholes and deductions as GE, then there would be zero tax revenue from all companies, only the employees.