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I work with and know a lot of left-wing people, and cutting the corporate tax rate is anathema to them. But the only people who pay 35% corporate tax are small

I work with and know a lot of left-wing people, and cutting the corporate tax rate is anathema to them. But the only people who pay 35% corporate tax are small and medium sized businesses! Once you get big enough, you can afford professionals to optimize your business for tax planning. The smaller guys don't have the time or the funds to do so. So in reality, the 35% tax rate is yet another moat that keeps large companies entrenched. By lowering to (say) 15%, the playing field would be drastically more equal.

xupybd 9y ago
While agree that lower rates would help and are fundamentally a better idea. I also think that it should not be legal to avoid these taxes in the current way. In order for the system to work these loopholes need to be closed. The market is based on the survival of the fittest and taxes can really distort things if not applied consistently. I think this is the key reason we need to solve this problem. Not to collect more from the rich but to make sure large international companies do not have an advantage based on their ability to hide funds offshore.
- Veratyr 9y ago
  > make sure large international companies do not have an advantage based on their ability to hide funds offshore The problem with this is that most international companies I've seen with funds offshore made that money offshore and ultimately, the cost of paying US taxes is unlikely to be worth the negligible benefit of being a US company. If the loopholes are closed I think it likely that companies will move. There are plenty of places with free trade and low tax. The US should limit taxation to US-sourced income. If there's no penalty for a company to bring its revenues to the US, it will likely do so and use it to drive local investment.
lz400 9y ago
Yes but that's like "losing the war". Who's telling you the next goal isn't going to be 5%? now they'll know the government caves in if you do enough financial/fiscal engineering. I don't know that it won't be ultimately the only way but I think we can do better and hold those companies accountable. But its a global problem that needs a global solution.
- gbacon 9y ago
  Be specific. What is the problem? Whose money is it? What is your proposed solution?

xupybd 9y ago

While agree that lower rates would help and are fundamentally a better idea. I also think that it should not be legal to avoid these taxes in the current way. In order for the system to work these loopholes need to be closed. The market is based on the survival of the fittest and taxes can really distort things if not applied consistently. I think this is the key reason we need to solve this problem. Not to collect more from the rich but to make sure large international companies do not have an advantage based on their ability to hide funds offshore.

Veratyr 9y ago
> make sure large international companies do not have an advantage based on their ability to hide funds offshore The problem with this is that most international companies I've seen with funds offshore made that money offshore and ultimately, the cost of paying US taxes is unlikely to be worth the negligible benefit of being a US company. If the loopholes are closed I think it likely that companies will move. There are plenty of places with free trade and low tax. The US should limit taxation to US-sourced income. If there's no penalty for a company to bring its revenues to the US, it will likely do so and use it to drive local investment.

lz400 9y ago

Yes but that's like "losing the war". Who's telling you the next goal isn't going to be 5%? now they'll know the government caves in if you do enough financial/fiscal engineering. I don't know that it won't be ultimately the only way but I think we can do better and hold those companies accountable. But its a global problem that needs a global solution.

gbacon 9y ago
Be specific. What is the problem? Whose money is it? What is your proposed solution?