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View Full Version : Economics 60 Minutes - US Corporate tax rate highest in world and why companies flee US


mlyonsd
03-28-2011, 07:54 AM
A very interesting and eye opening story showing how the rest of the world has taken advantage of our ancient tax code, and how they've lured US companies overseas.

It's too long to post but can be read or watched here.

http://www.cbsnews.com/stories/2011/03/25/60minutes/main20046867.shtml?tag=contentMain;contentBody

...
One CEO who would talk to us was Chambers. Cisco is the giant high tech company headquartered in San Jose, Calif. He says our tax rate is insane. It's forcing companies into these maneuvers, especially when many other industrialized countries including Canada are busy lowering their tax rates in order to lure our companies and our jobs away.


"Every other government in the world has realized that the U.S. has it wrong. They're saying, 'I'm going to have lower taxes, period.' That's what you see all across Western Europe, that's what you see in Asia in the developed countries," Chambers said....

jiveturkey
03-28-2011, 08:02 AM
It would be hard to argue for keeping the rate where it's at.

But how many jobs would actually come back to the US if it was lowered to 15%? Or would these companies continue to make use of cheaper foreign labor regardless of what our tax rate is?

If the rate is 15% would we actually collect more since most of it wouldn't be hidden overseas?

Even if we're not the lowest it doesn't make sense being the highest either. It's definitely something that needs to be reviewed and corrected.

MGRS13
03-28-2011, 08:02 AM
I guess if they don't like it they can get the fuck out.

AndChiefs
03-28-2011, 08:10 AM
I guess if they don't like it they can get the **** out.

This is quite possibly the smartest comment I have ever read.











:banghead:

HonestChieffan
03-28-2011, 08:18 AM
Maybe if we didnt use taxes as a punishment and Tax breaks as a reward? Politics and apply the tax code as way to reward political support or punish political opposition may be at the very root of the problem.

FD
03-28-2011, 09:30 AM
Thats the highest rate on paper, the effective rate is much lower because we allow a number of write-offs including certain capital investments. When you account for the rate actually paid, we are more in the middle of the pack of wealthy nations. The problem is that many small businesses don't have the ability to take advantage of the big deductions and so are hit with the high rate. I support getting rid of some of these "loop-holes" and reducing the overall tax rate. Obama recently proposed this, and it seems like something he and Congress should be able to agree on.

chiefsnorth
03-28-2011, 09:41 AM
I guess if they don't like it they can get the **** out.

That's precisely what they are doing.


The tax code violently supported by the Democrats is so outmoded it's nit even funny. These companies simply expatriate money, and the Dems solutions are ultimately "let's make it illegal, let's tax American companies out the wazoo if they do this."

So they want to bitchslap American industry with pornographic tax rates, while at the same time foreign companies operating in tax-sane environments sell products here for less that American companies can't compete with. So their solution to that is, "let's tax them more too!" (See a pattern here in what their idea of a solution is?)

Then consumers are left to wonder why prices for everything just keep climbing.

MGRS13
03-28-2011, 11:44 AM
well my first comment was some what tongue in cheek, some what. The Right/conservative/christian elite in this country have told me and others many many times when it comes to America "love it or leave it." So how are these corp. any different? If citizens don't "love it" we have to go but if the mighty mighty corps in this country don't "love it" we should change it for them? Are our ideals in this country really this out of wack?

chiefsnorth
03-28-2011, 11:58 AM
well my first comment was some what tongue in cheek, some what. The Right/conservative/christian elite in this country have told me and others many many times when it comes to America "love it or leave it." So how are these corp. any different? If citizens don't "love it" we have to go but if the mighty mighty corps in this country don't "love it" we should change it for them? Are our ideals in this country really this out of wack?

Ah yes, the Detroit/MI strategy. Run business out and then wonder why no one has jobs and everyone is leaving.

MGRS13
03-28-2011, 12:02 PM
Ah yes, the Detroit/MI strategy. Run business out and then wonder why no one has jobs and everyone is leaving.

So you are saying corp. in the US should have a louder voice and more rights then the citizens. Well we can stop have a discussion cause I'll NEVER come around to that line of thinking.

mikey23545
03-28-2011, 12:07 PM
So you are saying corp. in the US should have a louder voice and more rights then the citizens. Well we can stop have a discussion cause I'll NEVER come around to that line of thinking.

You seem to be one very confused individual.

I don't know where in this thread anyone proposed any such thing. So what the hell are you arguing against?

MGRS13
03-28-2011, 12:11 PM
You seem to be one very confused individual.

I don't know where in this thread anyone proposed any such thing. So what the hell are you arguing against?
You feel free to read post #9 and take it any way you want. I don't post in this forum very often(which im sure you are all happy about)but I've learned never to give any of you the benefit of the doubt. Corp. trump the will of the people=the modern conservative ideas.