Are the arguments against the “crackdown on Business taxes” valid?
Question by Olan Black: Are the arguments against the “crackdown on Business taxes” valid?
I have heard both sides, and the arguments against is “this will cause businesses to decrease jobs in the US”. However, the majority of the companies that are involved have already packed up and moved operations overseas. they may have the corporate headquarters located here, but the actual manufacturing of items are overseas.
Other arguments are: it will stop business growth in the US.
your thoughts?
http://news.yahoo.com/s/ap/20090504/ap_on_bi_ge/us_obama_taxes
http://www.foxnews.com/politics/2009/05/04/obama-crack-business-taxes/
A major cause of companies moving overseas was listed as “wages”,
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Best answer:
Answer by Voice of Reason
My thoughts are that people who are complaining about this just need something to complain about
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Tagged against, arguments, Business, crackdown, Taxes, valid
ndmagicmanJune 7, 2010 at 8:45 pm
A recent GAO survey showed that over 60% of US companies paid no income taxes. Maybe a ‘crackdown’ is needed.
http://moneycentral.msn.com/content/Taxes/P80242.asp
Peace through blinding forceJune 7, 2010 at 8:53 pm
As you say, they “have the corporate headquarters located here” but will shut-that down as well.
It isn’t even a debatable point. Obama said himself on the air that he knows this is so. It WILL hurt the economy and he SAID he knows that.
BTW, “crackdown” is a lie. It’s actually an unlawful usurpation. The U.S. government has no lawful authority to tax foreign entities just because they have U.S. affiliates.
But, you can’t name any LAWFUL Obama policy anyway.
state of the union?June 7, 2010 at 9:44 pm
It further hurts a struggling economy by putting more of a load on already aching businesses. Takes away from their earnings and slows growth. Usually it’s a good idea to give them the break so they invest more and create jobs.
Time to Shrug, AtlasJune 7, 2010 at 10:10 pm
Realize that the new taxes are aimed at overseas EARNINGS, not overseas COSTS.
The portrait being painted by the populists is not accurate – it is not an issue of evil companies moving their manufacturing overseas to save on costs and then selling back to the US.
One of the primary reasons US companies are expanding overseas is because they want to sell in growing markets – which due to its size the US no longer is.
US companies are going to continue to pursue growth strategies. By levying additional taxes on their international divisions, nothing is being accomplished outside of making the company as a whole less competitive.
Anyone who thinks that these taxes will somehow translate to US job growth should think again. This is a revenue grab – period.
The only job growth we see will be in the US government sector – then again, based on his policy decisions, maybe a small and shrinking private sector giving way to a large and growing government sector is exactly what Obama and other liberals prefer.
Locutus 2of1June 7, 2010 at 10:10 pm
It won’t reduce jobs so much as it will reduce the number of businesses that operate in the U.S.. Companies will leave the U.S. all together, then who will you tax.
James LJune 7, 2010 at 10:38 pm
many of these businesses are the same ones that are in danger of failing because they are not profitable. How is increasing the tax burden going to help anything? I’m fine with the idea of closing tax loopholes, but you should also lower the corporate tax rates in the US so that you can still be an attractive place to do business. The effect you are going to have by cracking down on tax loop holes without lowering tax rates is that companies will simply move all of their operations off shore. As long as you have rules people will do their best to get around them. Everyone wants to keep as much of their money as they can. By lowering tax rates and closing loopholes you will entice businesses to keep their business here by making it more lucrative. And attracting more business will increase revenue even if the base tax rate is lower on all businesses.