When they talk about reducing tax rates on the rich, does that

[napi21]

include Corporate taxes? I keep hearing both sides talking about tax rates on the upper 20% or the 80% majority, but no one ever mentions how all these breaks impact Corp. taxes.

[I_am_Spartacus]

1. It would be hard to cut corporate taxes any farther.

I think the effective rate of taxation on corporations, regardless of gross income, ranges from 2% to 5%.

Corporations can already cut their taxable income to the bone through all the existing breaks and tax laws, including paying Christmas bonuses if they find at the end of the year they have a lot of extra money.

I think corporations only pay about 30% of all taxes paid in the US (even though they are our richest citizens). So if there were an Alternative Minimum Income Tax on corporate income of 6 to15% no indidual would have to pay income tax at all! (Obviously, that wouldn't be a sensible policy but it gives you some perspective on how crazy things are.)

[hfojvt]

3. 30% is way high

In 2000, the latest year for which I have data, total receipts for the federal government was 2.025 trillion. Corporate income taxes amounted to .207 trillion, about 10% of that. Personal income taxes were 1.005 trillion and FICA was .653 trillion. Excise taxes were 68.9 billion.

If you check some of the reports at Citizens for Tax Justice, you will find that many corporations with millions in profits are paying negative tax rates because of payments they get for various incentives. This has been going on for decades. Mark Shields wrote that when Reagan heard about it, he was livid. He signed some laws that cut some of that down, but they have lobbied and loopholed their way back on the gravy train.

The current crop of Republicans in Congress and POTUS are mostly aware of this and not the slightest bit outraged. Why should they, when they have won the last two elections?

[napi21]

5. Could changing this, back to the Reaagan philosophy, be a

Dem plan???? All we keep hearing is that all the Dems do is whine and moan, but they don't have a plan of their own.

Why couldn't we propose a major reform of the Corp. Tax structure? I don't think it wolld be difficult for the avg. person to understand that XXX corp not only doesn't pay ANY tax, but receives a subsidy, so "You paid $5,000 in income tax last year when you earned $30,000, and XXX Corp earned $3 billion, and received $1.5 in a subsidy!"

[hfojvt]

2. although corporations are legally persons

they do not pay personal income taxes. Corporate taxes, income taxes, sales taxes, FICA taxes, inheritance taxes, gasoline taxes, excise taxes, etc. are all different taxes and proposals to change them have different impacts. A change in income tax rates has no impact on Corporate taxes.

However, they do not talk about reducing tax rates on the rich, WE do that when THEY pretend to be reducing taxes for all of us.

[napi21]

4. I suspected as much on the Corp taxes. I would like to hear

the analysts in the media demonstrate THAT on theig charts and graphs! The RW, like Limpballs, is constantly promoting the idea that Corp taxes just get passed down to us anyway, and we should eliminate them! I disagree with that!!! I say, if Corps pay ANY taxes at all right now (after taking advantage of all the favoritism in the special loopholes), they are at least contributing to the tax revenue. If they paid none at all, they would simply retain the income within the Co. and increase the stock value...thus increasing the wealth of it's stockholders. Once again, the wealthy benefit!

[papau]

6. Very True

:-(

Every rich person is incorporated so they can move their assets and income into a no or very low tax situation. Corporation tax law is a give away to the rich - and I once headed a Fortune 100 US Tax Department.