Can someone explain why cutting taxes for corporations is good for the economy? Someone who actually knows a thing or two on the subject.
Your mother's ass
Cut corporate taxes = more money for research, development, production, hiring, building, investing, etc etc.
Oh wow little shit eating europe doesn't know shit. Let me explain.
Corporations actually pay more in taxes because they have more money and are taxed more.
If you cut taxes it makes them want to build shit in your country.
Congratulations, you are fucking gay and retarded.
>>69368301
The idea is the tax credits encourage corporations to not fire its employees and to remain in the country.
>>69368301
It's not.
The US should raise taxes on all imported goods and put Americans to work making their own shit... no more free rides fuckers... no more loans to other nations while we are loaning money from China...
It allows the US to compete in a world of global inversions.
We should lower corporate tax rates, then raise the marginal personal income tax rates.
>>69368301
that looks like a glass of beer.
>>69368542
To add on to my point. Don't need to raise or lower taxes...just tax the overseas producers...and give incentives to corporations that produce domestically.
>>69368599
remove income tax
add consumption tax
:^)
>>69368301
>Can someone explain why cutting taxes for corporations is good for the economy?
It's not. It's good for the legislators who cut the taxes, because they get favors from the corporations in return.
The "good for the economy" lie is just a cover story. It's part of the whole package of lies called "trickle down" or "supply side" economics. (At least that's what they call it here in the USA.)
>>69368301
Because then the corporate executives can give themselves a raise and a bonus, spend corporate money bribing politicians, and not issue any dividends on stock.
Payroll tax, insurance, and workers comp insurance, at my small business runs me about 35% over wages. In California, minimum wage is $10 an hour. Including taxes and insurance, I have to pay my workers about $14.00 an hour.
Between the minimum wage increases and insurance, I've had to pay off three people and now I gotta work ten hours a day to stay profitable.
>>69368301
>>69368509
This man explains it pretty good. If corporations are taxed to high they might move to a lower taxes country. even ikea is trying everything they can to avoid paying taxes here because they are to fucking high.
>>69368301
Contrary to popular belief corporations don't like to sit on money, the only corporation that does this shit are the japs, corps want to invest into assets and themselves that can give them good future cash flows.
low tax = less expense = more money to hire, invest, to grow
Yo OP
Google laffer curve.
That's how it almost works. And that's why socialists are dumb shits when they want high taxes for companies.
because rich fags do their best to make you believe you need them
and theres a whole chorus of middle class wanabe richfags who believe it
fake ass gay capitalism
>>69368301
Here in Norway there is no such thing called tax cut. 2017 next year prepare your wallet Bjorn, lord Store demands you to give more welfare to the Syrian man Mohammed
>>69368301
It's only needed for very important key industries like agriculture, rent and electricity. Economic instability and collapse of these key industries can be disastrous.
>>69369355
"Socialism never took root in America because the poor see themselves not as an exploited proletariat, but as temporarily embarrassed millionaires."
-Some Guy.
>>69368542
/thread
>>69368498
>Cut corporate taxes = more money for research, development, production, hiring, building, investing, etc etc.
>Research outsourced to India
>Development done by H1B Visa holders
>Production outsourced to China
>Building done by illegals
>Investing done by Israelis
Total Sum of Benefit to the American people: 0
It's not.
If you want tax policy that's good for the economy, you want to have more cash in the hands of the poorest—both people themselves and employers. They'll spend everything locally.
The worst place to put more money in is internationally mobile corporations and individuals. They'll happily shop for the lowest tax rates and do elaborate schemes to lower their effective rates further while draining the cash offshore.
It's not rocket science to tax these parasitic corporations and people. You just got to do it.
However, you won't see most countries even approach great economic policy. Those internationally mobile corporations and individuals mentioned above hold a large amount of sway in politics—they *are* the politicians—and will happily pervert them for their own good and for the detriment of the general public and the economy.
It has something to do with the concept of crowding out of capital investments and the theory of deadweight loss, and finally, the way supply and demand curves work long term vs. short term.
Deadweight loss refers to inefficiencies created or hindered benefits due to certain policies usually by government intervention since the government always does a worse job of something that couldve been done by the free market (remember, the government doesnt have to play by the same rules as everyone else). Things like taxes, price floors/ceilings, subsidies, etc. all make it so that the "Real" market price/demand isnt realized.
In the case of taxes for example, taxes make it so that corporations dont have as much money to give to shareholders or reinvest in themselves.
IF they had that money, they could hire more employees, spend it on new equipment, or give it back to shareholders so they can spend it on whatever. Instead, they have to give it to the government to spend it on stupid niggers. This is what "Crowding out" means. Theres only so much money in the system at one point, so its a matter of allocation. What couldve been spent expanding the economy via investments is spent subsidizing subhumans.
The final thing is how long term and short term supply demand curves behave (pic related). Short term: consumption and monetary policy increase GDP. Long Term: Only labour (the number AND skill of people), capital (aka shit like machines and technology), and natural resources increase GDP.
By taking away from investments to fuel current day consumption (ie. taxes so Tyrone can by stupid shit, rather than Apple spending it on producing driverless cars), you're essentially taking away from the productive capacities of the future.
The reason why conservatives are known to be good as economics is because of their understanding of this supply curve. Notice how liberals are the ones that always spout "durrr supply side economix!!!!" and socialism in the same sentence.
>>69369640
Dumbass
>increase corporate taxes
>company moves overseas
>decrease corporate taxes
>companies move to land of burgers
>>69369483
???
>>69369173
Is that how it actually works out?
>>69369761
Store 2017, make Norway cuck again
The less money is stolen by government, the more money is available to run a business and pay employees.
>>69369697
>LAMO WHY DOESN'T EVERYONE JUST GET FREEEEEE MONEY
>WHO CARES MONEY IS INFINITE AHAHAH
>JUST
>MORE
>MAH SPOOKY SCARY 1%
Fucking kill yourself
Why have all Nordic countries become such insufferable cucks
>>69369904
Do you have autism? NEET? I'm not even a supporter of him.
>>69368301
First off, Tax cuts for anyone are good. Economies operate under chaos theory. This means that, even with infinite processing power, it is impossible for a government to calculate a more efficient use of resources than what a market can allocate.
Corporate tax cuts are desparately needed in the USA. We are not the bastion of free markets we once were. In fact, doing business is actually easier in many countries. The US has a corporate tax rate of 35% which is nearly the highest in the world. Firms tend to do business in places with lower corporate tax rates. The US corporate tax rate needs to be lowered to be in line with the rest of the world so that it can once again be advantageous for business to come to the US.
>>69369755
Trickle down economics only works if it trickles down to the fucking American people. Having companies in the US doesn't do shit for us if all the paychecks they write are to non-Americans you fucking retard.
It only serves to create more wealth for the ultra rich who base in the US because it's a tax haven.
>>69369755
Democrats
>increase corporate taxes
>corporations send work overseas to avoid taxes
>"we're not getting enough money"
>raise corporate taxes more
>more companies send work overseas to avoid even higher taxes
>"we're still not getting enough money"
>raise corporate taxes more
>etc.
Niggers are retarded
Because of free trade corporations can move freely out of the country if you tax them too high. That is why our Fatherlands are whores to jewish capitalists.
>>69370044
If your taxes are low enough that outsourcing costs more, they will stay in the U.S. It's really not that hard to understand
>>69368542
>>69368748
>>69369625
Fucking retarded protectionists detected
>>69369974
>>JUST
>>MORE
Isn't that what "Quantitive Easing" is ?
>>69368498
>larger and more extravagant staff parties
>more company cars
>company credit card limit raised
>expensive business luncheons
>every staff member gets the latest iPad and iPhone
Big business needs more money!
>>69369919
> greedy 'murifag would pay more the employees if the government will lower the taxes for his business
lol
>>69370186
Kill yourself bootlicker.
ultimately the most important thing is incentivizing businesses to be american and to hire americans
rich people are keeping bilions of dollars in offshore accounts
if they brung them here, they would be taxed out of existence
Trump's argument is, if we lower taxes on income, the rich people will bring the money home and invest it locally
https://youtu.be/Fuk1Oih8ZME
>>69368816
Hello, Che. Care to go on a helicopter trip with me?
>>69370044
No shit. Lowering taxes is only one piece of a bigger, more complex puzzle.
The three biggest pieces are:
Lower corporate taxes
Deport all illegals and halt all third world immigration
Cut the massive amount of needless and costly government regulation
>>69369047
Ikea already did
They legally moved here because we are a tax haven
>>69370242
>Flag
fuck off commie
>>69370204
It's the Canadian way of life.
>we got more paper money than leaves on trees!
>>69368818
>>69368816
You guys are fucking retarded, the reasons corporations headquarter in other places besides the US is because the tax here is so high, thats also why they go to China to manufacture by under cutting the lowest price Trump is effectively bringing corps to the US
Kill yourselves
>>69368509
This and
Believe it of not companies are supposed to get tax breaks as an incentive of making jobs
If it werent for all this outsourcing you would be seeing a fuckton more of it
>>69368498
>Cut corporate taxes
how do you cut from zero?
le trickle down meme
>>69370205
Everything you listed is this "consumption" thing Keynesians whine for so much
>>69369314
I met Art Laffer at an airport bar once when I was headed from NY to Seattle. He was totally surprised that I recognized him. He drew a Laffer Curve on a napkin and signed it for me.
Pretty much the best day of my life.
But yeah, he and Milton Friedman are pretty much the authority on supply side economics. Larry Kudlow is great on it, too. Listen to his radio show on Saturdays to get an idea. He can explain it much better than I can.
>>69368301
reaganomics is a meme
>>69369483
Ikke mobb Store, han er bedre en fascistiske Erna og Siv
>>69370027
Han driver bare med dårlig shitposting.
>>69370204
No, You're a bit confused
Quantitative easing is the thing you do right before you go the last case scenario of printing more
Quantitve easing is when central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply
>>69370361
t. mehemit
>>69368816
What do you propose then?
A company would have to be pretty loyal to stay with high tax. Was the reduction in tax not inevitable when the corps held so much power over the US when taxes were high?
>CUT TAXES
>MOTIVATE TO INVEST
>BING BOOM ECONOMY
You don't have to know economy
It's simple:
Corporations get richer cause less tax
Gov gets more dolla to improve ppls lives
In practice it's a bit different
>>69370449
Btw hitler based his economy on keynes fyi
>>69368301
Cutting taxes leaves them with more after-tax profits which they can use for investment, building new factors of production like factories, and hence employing more people. Pretty basic economics. I mean it should motivate firms somewhat not to outsource their production to dirt-cheap countries like Poo in the Loo land. It still pays off more to outsource though.
>>69370030
>The US has a corporate tax rate of 35% which is nearly the highest in the world.
Tied for 3rd highest on the planet
We have several other business related tax rates that are highest in the world
>>69370549
To laymans, its easier to explain it his way. Open market operations isnt exactly something everyone gets intuitively, but if you explain increasing monetary policy this way, even little kids can understand it.
>>69369588
>oppressed vs oppressor paradigm
False dichotomy that lies at the basis of all Marxist thought
There's a reason why social sciences students do not study formal logic
Their worldview cannot stand up to it
>>69368301
Ballpark
Corporations won't take their profits abroad where the taxes are much lower. They pay taxes at home and the states ends up with more money in the pocket. Meanwhile the corporation creates more jobs and thus reduces unemployment. Which again will result in more taxes payed. Everyone wins, the employer, the employee and the state as well.
>>69368301
Most company earnings go to investors, who more often than not reinvest them. When resources are stolen by government, the value of other people's productivity is squandered in inefficient bureaucratic bullshit.
>>69368301
because corporations are responsible for the majority of the economy in itself. lowering taxes thus automatically leads to a bigger economy because less money is taken away from it
>>69368301
Yeah I don't understand this
It seems better to tax at a lower level
taxes are the reason why apple has billions of dollars in cash overseas
corporations actually spend their money if there are investment opportunities so taxing just disincentives investment
why not just tax people more
>>69370205
But mate the wealth TRICKLES DOWNNNN
>>69368301
For the US specifically, because corporations there hold a few trillion dollars overseas. Because the US allows double taxing of profits that money is staying overseas, because corporations are waiting for the rates to drop.
>>69370403
>tax incentives for hiring
My country proves that under incompetant administration this policy is useless, just ask Ontario.
>>69370549
Its still printing though. If just a different way of injecting that money into the economy. Traditionally central banks do it by lending new money at a rate lower than the market interest rate. If the US Federal Reserve ever goes through with QE4, itll probably be over $12trillion. That money sure as shit won't represnet value that the Fed created. Its simply newly printed money. They are doing this because central banks are out of ideas on how to prop up a broken global economy. Infinite liquidity is the only play left in their book. And anyone that know anything about monetary systems knows what happens when states have nothing left to do but create liquidity. AKA the next financial meltdown will make 2008 look like a walk in the park
Id believe in the trickle down effect if I didn't see the opposite happen. Sibling is a dean with 6 figure sallary, goes on rants on how the colleges and unis just hire more deans/upper level management rather than infrastructure or actual faculty/supplies when they get more money, which is how he got his job with phd in sociology.
Don't get me started on the jobs I lost to outsourcing. Especially when the company was on the up and up.
It's kind of bad analogy, but kinda reminds me of giving cash to a bum and naively expecting him to do good with it (like noggers).
Ps not fan of high minimum wage either. Shit sux for small towns.
So they actually stay in the country
>>69368301
Corporate tax cut might not be always good. It can lead to corporations to pay out huge dividends and destroy their own working capital by doing so in a long run.
Better choice would be to change corporate tax a way that if a corporation invests some of its profits instead of giving it away for investors it could be beneficial for everybody. Lets say that corporation could create a fund on its balance like 20 % of its annual profits and they would not need to pay taxes on this money if the corporation would invest this money in to their own company and maybe creating new jobs with this investment.
Benefits on this corporate tax system:
1. Investors capital value would rise if the investment made by corporation would generate more revenues and hopefully more profits.
2. Corporations would not have to pay taxes and they could increase their working capital
3. New investment could generate more jobs and well being for people.
4. If Corporations would hire more people because this method then there would be less people on benefits and foodstamps etc. so government would make up their lost tax revenues due to decreased costs.
I think Estonia has this model in use and Finnish government is really thinking about this kind of solution.
>>69370906
t. "college" funding corporation
>>69369640
So you're going to ignore cheaper products or imprived technology? The biggest problem with you statist retards is that you think everything exists to serve you in some form or function when that's not the case. This is why you are a cancer and why every country you run eventually becomes a shit hole
>>69368301
individuals spend money better than the governemnt
USA has the highest corporate tax rate of all OECD countries and the 3rd highest on Earth.
Brain dead Sanders supporters think it needs to be higher
Loopholes are tolerated because Democratic party Congressmen are terrified of not getting reelected because they support lowering the corporate tax and get outflanked by a leftist in primary election even though they realize it needs to be lowered because they're not actually as stupid on economic issues as the people that vote for them.
Republican Congressmen don't support closing loopholes until Democrats agree to a package deal that also involves lowering the corporate tax rate in a way that is revenue-neutral.
>>69368777
It's like you don't even understand basic economics.
>>69369314
Okay, except that we are nowhere near that tipping point. Contemporary economies really aren't. It's more a thought experiment, rather than empirically evidence that we should lower taxes. We should, but not at all for that reason.
>>69370520
>Ikke mobb Store, han er bedre en fascistiske Erna og Siv
Store er et svin. Lik som Jens og Jagland vil han komme i lederposisjon ved å fri til de nyttige idiotene i landet, slik at han senere kan trekke seg tilbake i et inngjerdet luksushus i strasbourg med egne tjenere slik som Jagland eller i en attraktiv stilling som NATO sekretær som Jens.
Ikke tro de bryr seg om Norge eller Norges fremtid noldus
>>69369314
>laffer curve
Oh I am laffin
Supposing that the laffer curve isn't imaginary bullshit, it supports HIGHER corporate taxes as a 50% tax is the most optimal and also higher than what is in place. And yet every time some fucking moron whips it out they say it means we need to tax less, despite the stupid fucking graph showing that our tax rates are already too fucking low.
>>69369173
>low tax = less expense = more money for executive bonuses and quarterly returns while they still outsource jobs to dirtfarmer countries
Fixed, there is no such thing as corporate loyalty. If your government gives them a fucking dime that's ten cents of your tax money they've lost with no recompense. They will move jobs to China or some shitskin country the second it's more profitable. The only way to keep them in check is to implement stiff fines on overseas goods and services. They won't move jobs to China if it only gets them the same profit and an inferior product.
It isn't. They just use the extra cash to buy their own stock and then take out 0% interests loans.
The capitalist system rewards hoarding capital over generating profit. Research and development is a liability shoved off to developing co tries. They'll gladly leverage themselves into foreign market a d makes huge profits untaxed
>>69372306
Executive bonuses still cost a lot less than taxes.
Some fat CEO getting a big checque doesnt affect me. Me giving up 30-40% of my paycheque does.
>>69372306
This retard doesn't know how to read a chart. The laffer curve is a theory not an equation. The image you responded to doesn't have 50% at the top of the curve. It has "t". Its just it illustrate the idea.
>>69371729
>He thinks I'm a statist because I don't like that companies outsource all their shit.
Listen you God damn idiot. Trickle down only works when companies don't send their paychecks to fucking pajeet in dubai.
I do t want to raise corporate taxes or lower them, I want there to be fucking consequences for fucking the American people in the ass by outsourcing your shit for pennies on the dollar. I don't mind paying twice as much for a fucking smartphone if it's made here in the US by fucking US citizens.
Fucking millenials just want the cheapest newest gizmo around and don't care if some 9 year old Chinese kid was paid 20 cents in awful factories to make the newest iFuck.
You idiots made this bed. You idiots created the current corporate climate by demanding ever cheaper electronics, cars, plane tickets, tvs, etc.
The only way to solve it since you millenial fucks won't pay more than rock ducking bottom for your goddammit apple toilet plunger is make it more expensive for companies to outsource and import that shit back. That's 100% why I'm voting for trump. He'll bring manufacturing to the US. And damnit you might have to pay 2000 dollars to buy the new cellphonewatchbuttplug but you'll be better off in the long run.
How do you tax your way into wealth?
It makes doing business here more attractive. As it is now companies are leaving the US to go to other countries with lower taxes and less regulations. They don't need to be in the US to sell to the US thanks to our absurd trade deals.
>>69371729
>statist
The rich owners pocket the money instead of creating more jobs. The business owners should give 100% of their tax cuts to their employees.
>>69370609
Tax cuts after they spend money in the US.
>>69372647
>I don't mind paying twice as much for a fucking smartphone if it's made here in the US by fucking US citizens
Most people couldn't afford it then and standard of living would drop immensely if all of a sudden the cost of goods doubled overnight, in fact it would cause nationwide collapse
You are clearly driven by your feelings here and I suggest you take another look at the issue and try not to involve your feelings this time
>>69373095
>people should behave according to an arbitrary moral standard that I am in charge of
Kys
Le trickle down meme
>>69372583
Look at the fucking graph, it clearly implies that the optimum taxation rate is 50%. "t" is exactly half way between zero and one hundred percent.
But, putting that aside, it's fucking hilarious that economics is such a degenerate science that "tax nothing bad but tax all of everything also bad" is a legitimate fucking theory lmao.
>>69368301
its not
the whole "corporations are paying too much in taxes and labor" is garbage
they were taxes much higher earlier this century and wages were higher than they are now, adjusted for inflation
the tax cuts for the richest is just another move to cut the middle class
money has no value when everyone has it and the rich doesnt want you to be rich, its against their interest
It's not. After 2012 corporations saw their cash reserves blossom and everyone expected them to start heavily investing in R&D again, alas, 4 years later they are still sitting on that cash doing nothing.
Tax cut will just rob the taxpayer which will have to supplement that lost tax revenue while adding nothing in terms of economic growth.
>>69371808
>USA has the highest corporate tax rate of all OECD countries and the 3rd highest on Earth.
>The United States has the third highest general top marginal corporate income tax rate in the world at 39.1 percent (consisting of the 35% federal rate and a combined state rate), exceeded only by Chad and the United Arab Emirates .[1] However, the average corporate tax rate in 2011 dipped to 12.1%, its lowest level since before World War I, largely due to the great recession and a bonus depreciation tax break.[2]
Average corporate tax rate is equal to that of EU's tax haven (Ireland).
>>69372647
>trickle down only works when the companies are in your country
That's why you corporate taxes to give companies incentives to stay/move here
>>69373591
It wouldn't happen overnight you fucking retard. Manufacturing moving back to the US would take YEARS and in that time unemployment would drop, wages would rise as more employment opportunities become available, etc. It would be slow, and we would adjust. We did it during the manufacturing boom of the early 20th century just fine. We can do it again.
God damn you millenials are fucking brain dead sometimes.
>>69375952
So they move/stay here and outsource all their shit to India and china. How do we, the American people from that?
We dont.
>>69376350
Benefit from that*
Brain moved faster than my fingers.
>>69376204
That was a different time, during that boom in the early 20th century manufacturing workers in this country were paid and treated the same as manufacturing workers in China and India now
The manufacturing jobs are not coming back
You don't move into the future by desperately clinging to the past, the way forward is not in manufacturing
If you Americans are so upset about jobs being outsourced move to fucking Mexico they love American workers and the bookers are cheap.
Lazy bastards.
Go join a cartel I'm sure they will pay good money for a gringo drug mule.
>>69369753
>Notice how liberals are the ones that always spout "durrr supply side economix!!!!" and socialism in the same sentence.
I've never met a liberal that could explain a single economic principle in a logical or authoritative way.
>>69372647
>Le millennial boogeyman
Nobody was ever willing to pay significantly more for the exact same product. If anything millennials are the first generation to actually do it, in the case of all those fair trade products etc
>>69368498
Holy kek. Do you actually believe this?
Corporation taxes in the USA are some of the highest in the world.
"Socialist" countries like Sweden and Denmark have much lower corporate taxes.
The USA has to reduce it's corporate taxes and simplify the tax code, all economists agree with this. Whoever says otherwise is a filthy communist with no grasp on economics.
>>69369697
Why not differentiate between small, medium and big companies?
I mean you already gave an answer, but has this never been tried?
>>69378228
>Greece
>giving economic advice
top kek
>corporations move production overseas for cheaper labor
>goods get cheapier, but no average American got money from production job
It's like fully automatizing good's production and then trying to sell it cheaply to jobless people who had no money to begin with.
I blame loans.
>>69369974
You should start by refuting anything I said.
Economy is not rocket science. It's just a trainwreck of conflicting interests where very rarely the best common good solutions prevail.
