March 18, 200917 yr News Flash - State and Local governments often if not always provide tax incentives so that the actual rate is not what it says. Companies have a responsibility to their workers and to the country that has allowed them to grow to become large enough to be considered multi-national. FWIW, when is enough profit enough profit? If you are making goods in America and your CEOs are clearing millions of dollars and the stock owners are seeing a reasonable return on their investment, why the rush to the bottom line? That may well be the truth. But a tax hike is a loss in profit. The simple truth of the matter is this...Companies will do everything they can to keep profits where they are or higher. I don't know of one business that will be satisfied to make less money. If they can't cut employees, they'll pass it on to the consumer. The consumer will more than likely take the brunt of any tax hike, like it or not. Every business in this country isn't "clearing millions of dollars", the vast majority of small businesses (which employees around 70% of workers in this country) must rush to the bottom line to stay in business. They simply can't deal with another hike...They'll pass it on, and I don't blame them.
March 18, 200917 yr That may well be the truth. But a tax hike is a loss in profit. The simple truth of the matter is this...Companies will do everything they can to keep profits where they are or higher. I don't know of one business that will be satisfied to make less money. If they can't cut employees, they'll pass it on to the consumer. The consumer will more than likely take the brunt of any tax hike, like it or not. Every business in this country isn't "clearing millions of dollars", the vast majority of small businesses (which employees around 70% of workers in this country) must rush to the bottom line to stay in business. They simply can't deal with another hike...They'll pass it on, and I don't blame them. And those small businesses are not going to pay more taxes under the plan, nor are they going to ship their businesses overseas. Apparently the economy was doing well under Clinton, and the plan simply returns to that level. Not any more than that.
March 18, 200917 yr And those small businesses are not going to pay more taxes under the plan, nor are they going to ship their businesses overseas. Apparently the economy was doing well under Clinton, and the plan simply returns to that level. Not any more than that. But under the current economy it could be devastating to those small businesses.
March 18, 200917 yr News Flash - State and Local governments often if not always provide tax incentives so that the actual rate is not what it says. Companies have a responsibility to their workers and to the country that has allowed them to grow to become large enough to be considered multi-national. FWIW, when is enough profit enough profit? If you are making goods in America and your CEOs are clearing millions of dollars and the stock owners are seeing a reasonable return on their investment, why the rush to the bottom line? What tax incentives are you referring to when you make this statement and what facts do you have to back it up?
March 18, 200917 yr What tax incentives are you referring to when you make this statement and what facts do you have to back it up? Here is the first example that came to mind. Toyota Boshoku
March 18, 200917 yr And for the record, my comment should read as an example of the haphazard nature of tax policy in the US, not an endorsement of it.
March 19, 200917 yr Here is the first example that came to mind. Toyota Boshoku That would not materially affect the rate of taxes they pay as per ace's post. It's kind of like a ten dollar savings for someone making a $100,000 a year.
March 19, 200917 yr That would not materially affect the rate of taxes they pay as per ace's post. It's kind of like a ten dollar savings for someone making a $100,000 a year. But it is a tax incentive that lowers their net tax burden, making Kentucky a more desirable location comparatively to another state whose tax rate may be lower. If I'm not mistaken, ace's contention was that despite the official figure, special agreements and incentives mean that those official rates are not always indicative of the exact tax burden the company faces and the particular example I posted reflects that.
March 19, 200917 yr But it is a tax incentive that lowers their net tax burden, making Kentucky a more desirable location comparatively to another state whose tax rate may be lower. If I'm not mistaken, ace's contention was that despite the official figure, special agreements and incentives mean that those official rates are not always indicative of the exact tax burden the company faces and the particular example I posted reflects that. And I disagree that it changes the rate in any meaningful way. Not big enough when compared to their overall tax burden. And the rate would be the same anyway, just applied on a lower income.
March 19, 200917 yr Here is the first example that came to mind. Toyota Boshoku As someone that has been significantly involved in local economic development activities and is on one of the State's economic development related boards, I can assure everyone on here that the percentage of corporations that receive anything coming close to a significant incentive package from the State or a local govt unit is very, very, very small. So the thinking that incentives reduce the income tax that most corporations pay is completely unfounded and any thinking that the corporate income tax does not need to be lowered because those corporations receive a bunch of incentives is likewise completely unfounded. A small percentage of corporations do receive incentives, but it is a very small percentage of corporations. The rest just get stuck paying the ridiculously high tax rate with no incentive offset.
March 19, 200917 yr Anybody read Senate Bill 229?? From this latest Kentucky legislative session?? I would say that when you can recover your payroll taxes for a significant # of years that it does have an impact on your net taxes. look at KEDFA and KIDJA programs for the state.
March 20, 200917 yr Anybody read Senate Bill 229?? From this latest Kentucky legislative session?? I would say that when you can recover your payroll taxes for a significant # of years that it does have an impact on your net taxes. look at KEDFA and KIDJA programs for the state. I'm well aware of KEDFA, KIDJA and the rest of the incentive programs as I often advise companies on the benefits. And again I know for a fact that the percentage of Ky corporations that get those incentives is very small. Any bill to reduce taxes is a step in the right direction. Now if I can just convince legislators to repeal the Ky corporate income tax entirely I'll be satisfied.
March 20, 200917 yr I'm well aware of KEDFA, KIDJA and the rest of the incentive programs as I often advise companies on the benefits. And again I know for a fact that the percentage of Ky corporations that get those incentives is very small. Any bill to reduce taxes is a step in the right direction. Now if I can just convince legislators to repeal the Ky corporate income tax entirely I'll be satisfied. LN, I would assume that if you are advising, that a whole lot more companies will soon be taking advantage of the incentives. 229 does a lot for existing and small businesses . . . might want to read it.
March 20, 200917 yr LN, I would assume that if you are advising, that a whole lot more companies will soon be taking advantage of the incentives. 229 does a lot for existing and small businesses . . . might want to read it. Every little bit helps.
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