PDA

View Full Version : A question for the corporate individual



Boston
11-01-2013, 11:06 AM
If a corporation is a person, why don't they personal income tax ? Why are they favorably discriminated as a corporation when the supreme court says they are a person.

I'm no expert on taxes, but it seems to me that if a corporation is a person then they should be paying some whopping huge personal income tax. For instance, the energy sector is making record profits soooooo shouldn't they be paying record taxes ?

BrianY
11-01-2013, 01:46 PM
A corporation is a "person" only for a limited number of legal purposes concerning contracts and legal liability. They are not "persons' in the same sense as you and I are.

Bobcat
11-01-2013, 01:54 PM
Corporations file income tax returns. If they don't pay enough in taxes, blame the tax laws and the loopholes that favor corporations

bogdog
11-01-2013, 01:56 PM
A corporation is "legal" person but not a "natural" person with fundamental rights, this is something that is not understood by the SCOTUS.

Waddie
11-01-2013, 02:15 PM
The corporate tax rate is high enough but they take advantage of many deductions, so they don't pay that rate. Of course, individuals take advantage of many deductions as well, so none of us actually pays the actual tax rate. 47% of individuals pay no federal taxes at all, though they often do pay payroll taxes which helps pay for their SS and Medicare. Corporations are also taxed twice, once on their profits, and again when those profits are sent out to shareholders, who, depending on how long they hold the stock, either pay their full tax rate on them or a reduced capital gains rate. There is nothing simple about the tax code. Lobbying for deductions and thus continually making changes in the tax code is what keeps the campaign coffers full and is responsible for thousands, maybe millions of tax related jobs in government and the private sector.

Tax related expenses are overhead and contribute little to our standard of living. They're like the massive amount of paperwork associated with health care that does nothing to directly improve people's health. Think of what could be done with the savings if we could ever greatly simplify the tax code.

regards,
Waddie

Waddie
11-01-2013, 02:30 PM
I'm all in favor of simplfying the tax code. My only problem: the GOP idea of tax code simplification results in a dramatic further lowering of taxes on upper income people, and a correspondingly dramatic increase in taxes on lower income people. Just look at Paul Ryan's loony tax proposals of the past.

Of course the other side believes that the Democratic idea of tax code simplification results in higher taxes. Maybe they're both right.

regards,
Waddie

J P
11-01-2013, 02:33 PM
Corporations are also taxed twice, once on their profits, and again when those profits are sent out to shareholders ...

S corporations avoid the double taxation, no?

Waddie
11-01-2013, 07:34 PM
Norman, it's called globalization. And the rich are creating jobs, just not so much in this country anymore. Face it, we are a global economy but we didn't put the necessary mechanisms in place to properly distribute the wealth created in that global economy. This growing wealth disparity is virtually worldwide. You do know that half the profits generated on the US stock exchange now come from foreign soil? And even if you raise taxes on the 1%er's I doubt you will generate much more revenue, much less than you might expect. They can move money globally as well, and will follow low taxes and higher profits.

I've said this before, and it's worth repeating; no one nation can fix this, there has to be concerted action with a new level of cooperation between governments. The same goes for any great stimulus program. Stimulus by any one nation, even one as powerful as ours, is only a temporary fix unless there is a joint effort at stimulus that includes participation by the BRIC countries.

regards,
Waddie

hokiefan
11-01-2013, 10:21 PM
Norman, it's called globalization. And the rich are creating jobs, just not so much in this country anymore. Face it, we are a global economy but we didn't put the necessary mechanisms in place to properly distribute the wealth created in that global economy. This growing wealth disparity is virtually worldwide. You do know that half the profits generated on the US stock exchange now come from foreign soil? And even if you raise taxes on the 1%er's I doubt you will generate much more revenue, much less than you might expect. They can move money globally as well, and will follow low taxes and higher profits.

I've said this before, and it's worth repeating; no one nation can fix this, there has to be concerted action with a new level of cooperation between governments. The same goes for any great stimulus program. Stimulus by any one nation, even one as powerful as ours, is only a temporary fix unless there is a joint effort at stimulus that includes participation by the BRIC countries.

regards,
Waddie

Yeah well, lots of luck getting this past the teaparty & tinfoil hat crowd. OMG, the UN is taking over...:d