Comments on: Are the arguments against the “crackdown on Business taxes” valid?

By: James L

James L — Mon, 07 Jun 2010 22:38:32 +0000

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.

By: Locutus 2of1

Locutus 2of1 — Mon, 07 Jun 2010 22:10:42 +0000

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.

By: Time to Shrug, Atlas

Time to Shrug, Atlas — Mon, 07 Jun 2010 22:10:23 +0000

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.

By: state of the union?

state of the union? — Mon, 07 Jun 2010 21:44:46 +0000

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.

By: Peace through blinding force

Peace through blinding force — Mon, 07 Jun 2010 20:53:40 +0000

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.

By: ndmagicman

ndmagicman — Mon, 07 Jun 2010 20:45:20 +0000

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