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Cool Alternative to Corporate Taxes?


KandJBm

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While reading economic stuff that can easily solve insomnia, we came across this cool idea that some of you may find interesting.

 

http://www.nytimes.com/2016/01/13/opinion/a-progressive-way-to-replace-corporate-taxes.html?_r=1

 

 

 

 

 

 

 

Insomnia solution by reading economic stuff?? It keeps me awake at night just because I am so mad at the stuff I read!!!

 

You don't want the government to have partial ownership of any business. Either make it a private business or a government program with clear lines of operating areas. I believe what the New York Times is proposing is just a form different form of fascism.

 

Early in my career I worked for a consulting firm. One of the principals told me to NEVER agree to a deal where you get a portion of the NET receipts. The reason is that there will NEVER be any NET receipts distributed to you. The current Federal tax code is in a similar situation.

 

Washington state has a Business & Occupation Tax that is levied on the GROSS receipts of a company or business. It is generally well under 5%, but businesses hate it since they cannot hide or stash income away from the tax collector. Boeing and other large corporations have managed to get the Legislature to repeal the B&O tax for most corporations so only small business pays in Washington state. But that is a political problem that can be easily fixed by the voters should they chose.

 

Boeing and other corporations spend less on suites for the Seahawks and other teams in the Seattle. Seems like when you get taxed on GROSS rather than NET there is little incentive to waste business revenue on "toys".

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You don't want the government to have partial ownership of any business. Either make it a private business or a government program with clear lines of operating areas. I believe what the New York Times is proposing is a different form of fascism.

 

 

 

The article says the govt stocks would be non voting, so no say in the running of the company. Govt would only be paid dividends, period.

 

 

I like the Washington Gross receipts tax.

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Having worked for the Federal government for 30 years....................

 

The Federal government ALWAYS has a voting share even if they did NOT hold any shares.

 

Now you're just being argumentative. I don't think we should waste our time arguing about how much power the Federal gov't has over corporations. I have no idea about how much power this proposal would add or subtract from the Federal gov't, (The elimination of federal income tax on corporations does, however, seem like a fair reduction in that power, but that is not its purpose.)

 

This proposal is not trying to change the balance of power. Its purpose is about the following:

 

"The tax avoidance game is an enormous waste of resources and energy."

 

"The corporate sector as a whole devotes an enormous amount of money and brainpower to tax gaming, which contributes zero to the economy. Many of the financial wizards designing these schemes get very rich in the process, making tax gaming a factor in income inequality."

 

"It also eliminates the enormous cost and waste associated with complying with or avoiding the corporate income tax (there would be some start-up and monitoring costs, of course, but nothing like what current enforcement requires)."

 

KandJ

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