Ultimately only people can pay taxes. Taxing businesses is just a way politicians sweep taxes under the carpet so that voters can't tell how much they're actually being taxed.
That's why they split the Social Security tax into two parts, too, so that the employee thinks he's getting half of it paid for free.
Cheers, James
When you spend X dollars to hire people, you pay about 0.6X more to the government.
When you buy a piece of equipment, the government reduces you cost by about 40%.
Guess what businesses do?
-- John Larkin Highland Technology, Inc lunatic fringe electronics
You would ruin the housing market, for instance. Perhaps that's what you want to do?
The profits that pay the interest/dividend are taxed. You're paying the second tax when you receive them. If you own the business you will see both taxes.
Not possible. The middle are waking up.
And corporations will have an incentive to pay dividends rather than hoarding money off-shore.
I don't think so, just remove the artificial pressure in favor of it.
The home mortgage deduction benefits certain parts of society, a form of redistribution. That's wrong.
AEI's premise is that the tax code is for raising money to run the government, not for manipulating the populace.
I see a greater case for deducting state taxes from your federal income, since you didn't get the income if your state took it from you. But OTOH, I like the idea that we'd all pay more equitable parts of the federal burden, rather than high-tax states getting a write-0ff.
Yep.
Cheers, James Arthur
John Larkin wrote on 10/5/2017 9:05 PM:
You make it seem like you would be better off not hiring anyone. That works for me. I don't hire people, I use contract services and made a metric shitload last year. I guess you're just doing it wrong.
-- Rick C Viewed the eclipse at Wintercrest Farms, on the centerline of totality since 1998
No, what you get is a situation where it is highly profitable to /own/ a business, not to work for one. And if you tax just the businesses and not the people, it is no longer very profitable to run a business. If you tax income but not spending, people will borrow too much and have high debts. If you tax spending and not income, they will save up too much and the money will not flow round the economy. You need a balance
- you need to tax a variety of things across society. And you need to tax appropriately to get the public income in that matches the public expenditure.
Whenever a politician says we need big tax breaks in /this/ sector to encourage /this/ type of growth or change, they are wrong. It doesn't matter which sector they are talking about - they are /always/ wrong. They are also wrong if they thing making big tax /increases/ are a good idea.
Our tax returns are even simpler. The tax office knows how much you have been paid through the year - employers provide that information to them. They know about your bank accounts and mortgages with tax reduction - the banks provide the information. They know about how much tax rebate you are due for paid childcare, and everything else involved. So they send you a form with a list of all this stuff, and the tax you owe and the tax you paid, and ask if there is anything missing or anything needing corrected. If you don't need to change anything - most people do not - you don't need to do anything at all.
The rules behind the taxing are complicated, to say the least. But that's why we have computers. Give them a bunch of rules, put in the information, and out comes the answer. There is no need for people to spend hours digging through old receipts and payslips, filling out numbers manually, then sending the forms off so that some tax official can type these numbers in again.
But but but nukes don't kill people, people kill people. The Kim dynasty /likes/ nukes - look at how many they (continue to) let off - it is almost a recreational activity for them[1]. I'm sure the constitution doesn't prevent them having them, so they can have them.
And if Korean unification ever occurs, I wonder whether the southern half of the Korean will get rid of them or be glad that the northern half has given them the ability to defend themselves against the ancient enemy over the water.
Makes as much sense as everyone should have concealed weapons.
[1] apologies to the poor bastards that live in N Korea but are outside the favoured cadre.
"Don't hire anyone". That's a great plan for the country. Obama's, in fact.
Wrong. Even at zero capital gains tax, you still pay personal income tax, just not both as it stands now.
Right. We need *MORE* taxes. ...so the unproductive can be even more unproductive!
es on the profits it made. So when it uses some of those profits to pay di vidends , the money has been taxed once already. When someone gets dividen ds , they have to pay takes on the dividends received. So that is the sec ond time the money is taxed. You do not pay taxes on the principle. But t he company gets taxed on the profit it makes and you get taxed when you re ceive some of companies profits.
dividends and the stock owners will pay more in taxes.
Oh, that I do understand, thanks Dan. We make a profit, company pays taxes , then we get a bonus (based on profit.) and pay taxes on that money again. I think I end up with something less than 50% of the original profit. Lowering the corporate rate would at least reduce that some.
George H.
I do. The pressure is what allows personal home ownership. You can argue whether that's good or not but I think it is.
The portion that actually produces something. You know, that minority that actually pays taxes.
"Premise", is the operative word.
I don't. It's an excuse for states to go wild, and they have. It further separates the makers from the takers.
Wow! What a concise example of leftist logic!
I can't talk too much about buying a business. But I can to the house. To me, all of that is part of the cost in owning a house. You could choose to rent instead. I'm using my house to live in. (Not as some investment.) When I'm done with it I'll sell it, the inflation adjusted sale price is all part of the cost. Keeping inflation low helps!
George H.
You seem to be saying that our tax rates are now perfectly balanced across the various activities. I don't think they are.
You can play all sorts of econo-mental games, but in the long run a society consumes what it can produce (or steal.)
-- John Larkin Highland Technology, Inc lunatic fringe electronics
Bonuses, like salaries and benefits, are an expense to a corporation, so are not double taxed. The employees pay the income taxes on a bonus. There are secondary costs to the corp, like FICA and mandatory side taxes based on salary.
Dividends are double taxed, which encourages other tricks, like speculative stock appreciation, or buybacks. Our tax code distorts everything.
-- John Larkin Highland Technology, Inc lunatic fringe electronics
I have no idea how well-balanced your taxes are over on the far side of the pond. But /big/ changes will be bad, no matter what those changes are - you have to have stability. You have a political system that steers your car wildly to the left or to the right every 4 years - what you need is small adjustments to keep your car going straight ahead.
That's true.
But /big/ changes will be bad, no matter what those changes
What we need is some small changes in the tax code. Unfortunately we need a whole bunch of small changes. We have too many special provisions like t he manufactures of washing machines getting tax reductions for making more efficient clothes washers. The tax code is thousands of pages because of s pecial provisions. It should be about 30 pages. But there will be thousan ds of lobbyists working to keep special sections.
Dan
Why do idiots (like economists) think that ever-increasing housing costs are a good thing?
-- John Larkin Highland Technology, Inc lunatic fringe electronics
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