Gee, I wonder if this has anything to do with why businesses set up elsewhere in world?
just a conservative girl and Taxman are discussing. Toggle Comments
Hate to break your bubble, but American corporate tax figures does not include Value Added Taxes, unlike other developed countries. Furthermore, we have an array of tax breaks that brings down effective corporate tax numbers to 29.2%.
This results in taxes collected from corporations in the U.S accounting for only 1.7% of GDP, about 40% lower than other develop countries.
This of course does not take into account account our capital gains tax, which is once again one of the lowest among developed countries.
But hey, go ahead. Take the headlines at face value and continue fighting for tax deductions for corporations, whose contribution to the economy is already the lowest since WWII. Ignore also that the shortfall has been shouldered mainly by the middle class whose effective income has declined since 1973.
Hate to burst your bubble. VATs are added on at the end and paid for by the final purchaser. To say that the foreign corporations are paying more in taxes because of the VAT is laughable. Talk about piling onto the middle class. That is exactly what the VAT does.
We spend too much money. That is our problem. The federal gov’t doesn’t need to be doing even half the things it spends money on. $70B for the depart of education that doesn’t educate one child.
I live in DC. I know many people who work for the federal gov’t. Every last one of them will tell you how much money they waste and totally inefficient they are if they are willing to be honest. Most of which are.
lol. VATs are collected at every stage of the inventory process, from raw materials to parts and the final product. Only the final stage, the consumer stage VAT, is similar to sales tax. Get it?
And for the record, I’m not ‘saying it. The facts do. Russia’s VATs goes up to 18%. Norway, up to 25%. Ireland, up to 23.5%. Czech, up to 23%. UK, up to 20%. France, up to 20%. Germany, up to 19%. Spain, up to 18%. Brazil, up to 25%. Mexico, 16%. Singapore, 7%. Canada, up to 10%. Japan, up to 5%. The list goes on…
And yes, I agree. We spend too much money. However, I’m surprised that you cited the education department, though, considering our defense spending is more than ten times that amount, accounting for 43% percent of the global defense spending. 43%. That doesn’t include infrastructural spending. It also excludes expenditures incurred in Iraq and Afghanistan – which will ultimately cost the nation around $8 trillion in direct and indirect cost, enough to cover the expenditure of Medicaid and Medicare for the next 90 years.
One more thing. Education is one of the most critical aspect of our country’s future. And yet, we quibble over the cost, when other nations are spending proportionately more for their students compared to us (we’re ranked about 38th internationally). And we wonder why our children are regularly ranked below average compared to their international peers. Sad. Sad.
Speaking of the middle class, perhaps you’d like to listen to Reagan speaking on the subject. http://youtu.be/cgbJ-Fs1ikA
We actually spend more than many other countries on education and don’t get the bang for the buck that they do. We could easily get better results in education for less costs. we don’t have the political will to do it.
All corporate taxes are passed onto the consumer. They don’t pay taxes, they include them in the price of the costs. We pay them. The higher their taxes go, the more money you and I pay for goods and services.
I don’t deny we can cut money from defense. We can cut money from most everything.
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