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So Much For Capitalism!

by coldwarrior ( 27 Comments › )
Filed under Business, Economy, Regulation at April 3rd, 2012 - 11:30 am

We, yes the United States of America, Home of the Free, Land of Capitalism now have the highest Corporate Tax in the World!

 

Higher than Russia

 

Higher the China

 

Higher than India

 

Higher than Europe

 

US Has Highest Corporate Tax Rate in Developed World, Topping Japan

This has triggered complaints from U.S. politicians and business groups.”This isn’t an April Fool’s Day joke,” said Senator Orrin Hatch, the leading Republican on the Senate Finance Committee.

“Every industrialized country around the globe understands that tax rates can determine whether or not businesses succeed or fail,” Hatch said in a statement.

Across most of the political spectrum there is broad agreement that the U.S. corporate tax rate is too high, though few corporations actually pay that rate because the loophole-riddled tax code gives them lower “effective” rates.

Republicans and Democrats agree that the tax code needs work. It has not been thoroughly overhauled in 25 years.

In February, President Barack Obama proposed a corporate tax reform blueprint that included a 28 percent top rate.

Republican presidential hopeful Mitt Romney has said he wants to cut the corporate rate to 25 percent.

COMPETITIVE EDGE

The average 2012 corporate tax rate for the 34 developed countries is 25.4 percent, according to the Organization for Economic Co-operation and Development.

“As countries such as Canada and the United Kingdom have moved to reform their tax systems and lower rates to encourage economic growth, America’s inaction puts American worldwide companies at a competitive disadvantage and threatens our economic recovery,” said Bruce Josten, an official at the U.S. Chamber of Commerce.

Some U.S. companies pay close to the 35 percent top corporate tax rate; some pay nowhere near that, thanks to tax breaks that let them lower their “effective” tax rates.

Of the 30 companies in the Dow Jones industrial average, 19 told shareholders their effective rate for their 2011 fiscal years, mostly ending Dec. 31, was below Obama’s proposed new tax rate, according to a Reuters analysis of securities filings.

Of these companies, three — telecom company AT&T, Bank of America, and insurance company Travelers — posted a tax gain.

For the index’s other 27 companies, effective rates reported ranged from 2.7 percent for telecom giant Verizon Communications to 43.3 percent for energy group Chevron Corp.

These figures are taxes for shareholder accounting but not necessarily what was paid last year because Congress lets companies defer parts of their income tax for future years.

 

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27 Responses to “So Much For Capitalism!”
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  1. Speranza
    1 | April 3, 2012 11:38 am

    You can blame both parties for that.


  2. Daffy Duck
    2 | April 3, 2012 11:39 am

    This whole “corporate tax” notion peeves me off -- the consumer (us) ultimately pays for any “corporate tax” via higher prices for the goods we buy.

    I know that’s not news to anyone here, but I note that the linked article didn’t point taht out, either.

    Just another tool the politicians use to “make hay.”

    /spit


  3. Daffy Duck
    3 | April 3, 2012 11:40 am

    that@ Daffy Duck:

    taht / that


  4. 4 | April 3, 2012 11:44 am

    CW, if only it were solely the taxation rate. We have also been leveling layers upon layers of onerous regulation upon our productive community. Each of these regulations carries with it an extra cost which has the exact same effect as a tax. Just lowering our tax rates, while it would be a good first baby step, would not solve our economic ills by itself. We need to put sanity back into the way Washington does business. We have dropped to tenth place on Heritage’s economic freedom list. When the Zero took the reigns just 40 short months ago, we were fourth.


  5. 5 | April 3, 2012 11:46 am

    @ Speranza:

    Yup.


  6. Daffy Duck
    6 | April 3, 2012 11:47 am

    Flyovercountry wrote:

    [snip]…Each of these regulations carries with it an extra cost which has the exact same effect as a tax…

    That’s spot on. I had a client who once quipped: “If I had as many customer’s as I had regulator’s, I could make some serious money.”

    He wasn’t joking.


  7. 7 | April 3, 2012 12:03 pm

    @ Flyovercountry:

    Well said!


  8. Bumr50
    8 | April 3, 2012 12:13 pm

    OT- WOW.

    (sorry CW, back onT now, I promise!)


  9. 9 | April 3, 2012 12:18 pm

    @ Bumr50:
    The whole story is falling apart.


  10. 10 | April 3, 2012 12:34 pm

    A basic rule of economics is that the more something is taxed, the less of it there is. High taxes have been wielded as a weapon against the tobacco industry and they made no secret about the end result of these taxes -- either the end or the substantial reduction of tobacco production. Why would they not think that taxes would have the same result on any given economic activity?

    Juxtaposing the liberals’ tax policy with their confusion (real or feigned) as to how to stimulate economic growth reveals either criminal duplicity or profound, sand-pounding obtuseness. That substantial numbers of people actually buy into this economic alchemy being sold by liberals bodes ill for our future as an educated, self-governing people.


  11. lobo91
    11 | April 3, 2012 12:45 pm

    @ MacDuff:

    Next you’re going to tell us that raising taxes on oil companies isn’t going to cause the price of gas to go down.
    ////


  12. 12 | April 3, 2012 12:49 pm

    lobo91 wrote:

    @ MacDuff:

    Next you’re going to tell us that raising taxes on oil companies isn’t going to cause the price of gas to go down.
    ////

    Well, I was, but no one would have bought an idea that crazy //


  13. Canoe Convoy
    13 | April 3, 2012 12:54 pm

    O/T: I voted this morning. Just as in the last election, I wrote myself in as a write-in candidate. I counted across the ballot here in Wisc., and noticed that six candidates (at least four of whom were judges) were running un-opposed. I don’t qualify for a judicial position here in WI (I have no law degree, thus am not a member of the State Bar), so I wrote my name in for one of the County Supervisor positions.

    We have to get a handle on our spending, for if we don’t, our creditors certainly will.


  14. Canoe Convoy
    14 | April 3, 2012 12:56 pm

    My point being that the local and State offices can be as significant as the national offices for us to re-gain control of the nation. It isn’t enough to vote Tea Party types to National office — we got to have folks getting into local and State offices as well.


  15. 15 | April 3, 2012 1:02 pm

    Canoe Convoy wrote:

    My point being that the local and State offices can be as significant as the national offices for us to re-gain control of the nation. It isn’t enough to vote Tea Party types to National office — we got to have folks getting into local and State offices as well.

    Sorry, but it seems a waste of time since you weren’t on the ballot.


  16. coldwarrior
    16 | April 3, 2012 1:10 pm

    @ Flyovercountry:

    More regulation means more bureaucrats means more regulation means more bureaucrats . Its like an infection.


  17. 17 | April 3, 2012 1:14 pm

    @ coldwarrior:

    We need some societal penicillin. A third political party peopled by sane folks. Get Romney elected in the fall, and immediately start the process of building something else. This take back the GOP crap is just that.


  18. MikeA
    18 | April 3, 2012 1:21 pm

    Bumr50 wrote:

    OT- WOW.
    (sorry CW, back onT now, I promise!)

    WOw is correct. This is turning into liberal against liberal.

    Where did I put the popcorn….


  19. 19 | April 3, 2012 1:32 pm

    As has oft been said, if wind and solar were economically feasible government subsidies wouldn’t be necessary. The last I heard, Mitsubishi wasn’t exactly a company of Luddites and they’re not seeing a market:

    Mitsubishi has decided to “mothball” its Fort Smith wind-turbine manufacturing that was expected to employ 400 at full production.

    No word yet as to whether the Obama Administration will see this as an “investment opportunity”…….


  20. citizen_q
    20 | April 3, 2012 1:40 pm

    MacDuff wrote:

    As has oft been said, if wind and solar were economically feasible government subsidies wouldn’t be necessary.

    Isn’t that the reason why obamamessiah has been so fanatical about driving up the cost of energy? The only way to make it seem feasible, outside of many bong-hits and loose hippy chicks, is to artificially drive up the cost of all other forms of energy?


  21. 21 | April 3, 2012 1:54 pm

    citizen_q wrote:

    MacDuff wrote:

    As has oft been said, if wind and solar were economically feasible government subsidies wouldn’t be necessary.

    Isn’t that the reason why obamamessiah has been so fanatical about driving up the cost of energy? The only way to make it seem feasible, outside of many bong-hits and loose hippy chicks, is to artificially drive up the cost of all other forms of energy?

    Hmmm, yep. What the “alternative energy” hucksters don’t talk about is that wind and solar, while being applicable in certain situations, are no more than clever gizmos that will never make a real dent in our energy needs and whose cost will still be high in terms of KW/H. Sure, a solar panel on my house may heat my water in some seasons, but it won’t (and likely never will) heat or light my home in the winter. It’s snake oil.


  22. Daffy Duck
    22 | April 3, 2012 1:55 pm

    @ coldwarrior:

    The bureaucracy is expanding to meet the needs of the expanding bureaucracy…

    I presume it will do so until it kills its host.


  23. taxfreekiller
    23 | April 3, 2012 2:04 pm

    Sort of OT:
    Yet to me the root of the problem.posted this somewhere else prior , it just rolled off the end of my fingers just like this

    “What you have is a spoiled rotten bunch of vote buying union thugs with a possible iron fisted ruler in our White House.

    They and he have it within them to be the worst evil ever to the freedom held by the best and only free people the planet has ever known.

    This man and these low vote buyers of the current commie thug Democrat Party are a clear and present danger to all mankind.

    Without the good and decent leadership of the American people great evil would have been done prior and could be done by these self deluded haters of freedom. The low ones of the planet are alway there lurking for an open way to subvert freedom.

    Clear this one current in the White House is a person of total disregard of what America is and always has been.

    He has only learned hate from those around him, and is now closed off in a angery closed off place alone with very nasty thoughts about we the American people.

    Given just a small opening to the total power he and they now clearly seek, the rule of law will end if they move much more down this very dangerous path they are now on.

    No one want to belive they are as sick minded as the evidence shows us by their words and actions, yet there it is real before U.S. now.

    They will buy with our own tax money the chains to bind U.S. unless we face the truth and meet this ugly thing at the vote booths in November of 2012. Other wise great evil will be done by these very trouble people.

    Never discount facts.”

    tfk


  24. 24 | April 3, 2012 2:17 pm

    New Thread.


  25. 25 | April 3, 2012 2:18 pm

    Flyovercountry wrote:

    @ coldwarrior:
    We need some societal penicillin. A third political party peopled by sane folks. Get Romney elected in the fall, and immediately start the process of building something else. This take back the GOP crap is just that.

    I’m with you on that. A party of National Unity.


  26. citizen_q
    26 | April 3, 2012 2:19 pm

    @ MacDuff:
    Agreed.

    Snake oil to salve the self-righteous souls, and those who usd it as a red-herring for power and riches.


  27. 27 | April 3, 2012 4:51 pm

    Speranza wrote:

    You can blame both parties for that.

    True.

    Daffy Duck wrote:

    @ coldwarrior:
    The bureaucracy is expanding to meet the needs of the expanding bureaucracy…
    I presume it will do so until it kills its host.

    It damn near has.


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