Oops!!!!

[Hobbes]

http://money.cnn.com/2012/03/27/pf/taxes/corporate-taxes/index.htm

The relevant part:

Loopholes and other special treatment for different kinds of businesses mean that businesses pay an effective rate of only 29.2% of their income, which puts the United States below the average of 31.9% among other major economies, according to analysis by the Treasury Department.

The problem is that it's mostly the large multinational corporations that can take advantage of those loopholes.

Lower the rate and eliminate the loopholes!
Everyone agrees on both sides of the aisle but it never happens because the corporations that benefit most from the current system own the part of government that writes the tax code.

 

[ez bake]

Lower the rate and eliminate the loopholes!
Everyone agrees on both sides of the aisle but it never happens because the corporations that benefit most from the current system own the part of government that writes the tax code.

And that is my point. It has little to do with how we're hurting corporations or whether we need to tax the rich - that 4th branch of the government is the real problem.

BTW, a 5th branch is slowly forming as well - campaign financiers seem to be throwing their weight around more and more by asking for favors after elected officials get into office.

 

[Hobbes]

"Corporations are people my friend"
And
"Money is free speech" (The more money you have the louder you get to talk)

That's what the corporations who own the television stations and newspapers keep telling me.

 

[tntrex]

"Corporations are people my friend"
And
"Money is free speech" (The more money you have the louder you get to talk)

That's what the corporations who own the television stations and newspapers keep telling me.

Enters the room...

Warren Buffett

 

[Shootin 4 Fun]

I love the idea of increasing taxes on corporations. Those corps will absorb those taxes happily and will not recover the lost profits from consumers.

I'm tired of hearing about taxes, increasing taxes will not solve any problems, it will only create more. Inflation rates will hit double digits along with unemployment, but hey, we'll got those greedy corps and wealthy bastards to pay more taxes.

Here's a crazy thought Cut the corps some slack and offer incentives for putting Americans to work and see if the ncrease in income tax revenue isn't greater than what we had hoped to take from evil corps and the wealthy.

 

[Hobbes]

Who is talking about increasing corporate tax rates? Nobody

The only talk is about cutting corporate tax rates, but as I posted earlier, it won't happen because the loopholes, credits, and deductions are more valuable to the forbes 100 corporations than the lower rates would be.

The OP is about individual tax rates.

 

[tntrex]

Lets keep on with the individual tax rate. I'm trying to learn here!

If the congress lets the increase that barak wants to happen, happen. Then what are the dollar amounts(income wise) a family starts getting screwed at?

 

[Hobbes]

Lets keep on with the individual tax rate. I'm trying to learn here!

If the congress lets the increase that barak wants to happen, happen. Then what are the dollar amounts(income wise) a family starts getting screwed at?

$250,000

Some in congress, including Pelosi and Schumer have proposed making the number $1,000,000 because a quarter million a year is not that uncommon in states like CA and NY.

 

[tntrex]

$250,000

Some in congress, including Pelosi and Schumer have proposed making the number $1,000,000 because a quarter million a year is not that uncommon in states like CA and NY.

That would make more sense to raise it if they pass it.

 

[Werewolf]

Except you example is not relevant, as the our tax rates are bracketized, meaning that the initial $49,999 is taxed the same rate in either scenario. The higher marginal tax rate would be on any any additional income earned in the higher brackets.

I'm a Libertarian too, so I'm not arguing necessarily for a higher tax rate on higher incomes. But I am compelled to correct disinformation.

You are correct about marginal tax rates and how they work.

However, you are forgetting that one has to work just as much if not more to cross the bracket.

The Doctor referenced earlier cut back his practice to 3.5 days. Why? He made a rational economic decision.

If he works 3.5 days to take home say $2000 after taxes he takes home $571 per day. If he works 5 days and as an example now takes home after taxes $3000 he is now earning $600 per day. So he had to work and extra day and a half to take home an additional $145. Depending on how he values his time and effort determines the decision he makes re: working more.

Does that happen. Yes it does especially to those that are riding the line with earnings that put them very close to the next higher bracket. It happened to my father more than once in the 80's and got to the point where he told his employer to not give him a raise again until it would be large enough that he would actually take home more instead of less due to the raise pushing him into a new bracket. He was a very high income earner and ended up taking a raise about every third year. It saved him taxes and income.

You may want to look into economic indifference theory for an explanation of the choices consumers make for a more detailed explanation as to why one would accept less income in order to pay less taxes, get more free time and less work.

Its a complicated subject and is one of the fundamental foundations of economics.