My question is who do people think ultimately pays ALL corporate taxes?

Consumers pay for the costs of the products they purchase. If there are no or even lower corporate taxes, that means I will, more than likely, see a tax increase, thus lowering the amount of money I have to spend. If I have less money to spend, I will have to scale back on my spending likely causing the company that saw the tax break to reduce their production and/or cut prices. While I believe in theory that lower corporate taxes is a win for consumers because the prices paid for goods and services would be lower...I have zero faith that if you reduced a company's corporate tax liability by say 10% you would see a corresponding reduction in their prices. Also, zero faith that the government will reduce spending to offset the reduction in tax revenue.

 

To me, it is just a big circle of crap that just keeps cycling over and over, and the only difference between the pro business vs pro consumer sides is where you get on the carousel of taxes.

We have to get rid of this silly notion that Govt debt and deficits are due to under taxation. The US Federal Govt keeps raking in RECORD amounts of tax revenue with each passing quarter and year, and yet our debt and deficit continues to grow. The Wizards of Smart in Washington continue to spend us into oblivion. Spare me the Iraq War crap...........Govt spending has been a problem for WAY longer than the Iraq War has.

 

I won't disagree with your last line at all, in principle. But to say the Iraq War isn't still or has nothing to do with crippling our economy is just not being totally honest with the whole picture. Our economy might have been able to weather the housing/banking/auto industry collapses if it weren't already saddled by a war and the accompanying gadzillions of dollars being abused by defense contractors. Heck, those other industries may not have even collapsed at all if it weren't for the Iraq money pit.

I won't disagree with your last line at all, in principle. But to say the Iraq War isn't still or has nothing to do with crippling our economy is just not being totally honest with the whole picture. Our economy might have been able to weather the housing/banking/auto industry collapses if it weren't already saddled by a war and the accompanying gadzillions of dollars being abused by defense contractors. Heck, those other industries may not have even collapsed at all if it weren't for the Iraq money pit.

I am not here to defend contractors, but contractors can't abuse anything that our Govt doesn't let them abuse. In that regard again, politicians are the problem, which is my main point.

I won't disagree with your last line at all, in principle. But to say the Iraq War isn't still or has nothing to do with crippling our economy is just not being totally honest with the whole picture. Our economy might have been able to weather the housing/banking/auto industry collapses if it weren't already saddled by a war and the accompanying gadzillions of dollars being abused by defense contractors. Heck, those other industries may not have even collapsed at all if it weren't for the Iraq money pit.

The Iraq War has been very costly, no doubt. But, my point is that with or without the Iraq War, our politicians continue to OVER spend the peoples money.

I am not here to defend contractors, but contractors can't abuse anything that our Govt doesn't let them abuse. In that regard again, politicians are the problem, which is my main point.

 

The Iraq War has been very costly, no doubt. But, my point is that with or without the Iraq War, our politicians continue to OVER spend the peoples money.

 

Fair enough. It's just not a one-sided problem is all I'm saying. There's lots of layers, and lots of powerful people on both ends of the ideological spectrum will continue to benefit themselves by maintaining the status quo.

The Gulf War was subsequent to the de-regulation of our banking and mortgage industry in the 90's. The bursting of the housing bubble and the resultant immediate devaluation of billions of dollars of collateral thus creating a default situation was THE cause of the economic crisis.

 

While an expense, defense spending is also an economic stimulant. I know firsthand of local companies that were benefitting from the cost of the war. To label the war as a cause of the economic crisis is a big stretch in my opinion.

 

Regarding corporate income tax, one has to realize that we live in a smaller world these days with bigger companies. A higher business tax rate is punitive to smaller businesses as they lose to global companies who can manage their portfolios of assets and manufacturing and service capacities for the global optimization of their tax liability.

 

•The United States has the third highest general top marginal corporate income tax rate in the world at 39.1 percent, exceeded only by Chad and the United Arab Emirates.

•The worldwide average top corporate income tax rate is 22.6 percent (30.6 percent weighted by GDP).

•By region, Europe has the lowest average corporate tax rate at 18.6 percent (26.3 percent weighted by GDP); Africa has the highest average tax rate at 29.1 percent.

•Larger, more industrialized countries tend to have higher corporate income tax rates than developing countries.

•The worldwide (simple) average top corporate tax rate has declined over the past decade from 29.5 percent to 22.6 percent.

•Every region in the world has seen a decline in their average corporate tax rate in the past decade.

 

Corporate Income Tax Rates around the World, 2014 | Tax Foundation

 

We big-spending Americans are shooting our own golden goose. I wish we could see it.