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Lunatic Conservative Fanatsy Over Entitlements
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2012 Dec 12, 3:22am 3,769 views 14 comments
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121212
2012 Dec 12, 3:27am
Corporate Entitlements - "Those ‘expenditures’ will cost the U.S. government $628.6 billion over the next five years, according to a 2010 report from the Tax Foundation"!
121212
2012 Dec 12, 4:26am
Winning the Future: The Fiscal-Conservative Fantasy
http://www.americanthinker.com/2012/11/winning_the_future_the_fiscal-conservative_fantasy.html
121212
2012 Dec 13, 2:40am
Of course you wouldn't like the facts. Information allows you to make rational intelligent judgments.
" TWO nations left in the world that insanely taxes the income of its citizens and corporations GLOBALLY."
If you provide a global war machine, global protection for those assets, then those corporations and citizens benefit from it.
Someone has to pay for it! You want American dominance, you want the greatest military force that ever existed?
You goto pay for it ! Guess what corporations have ways around it, it's a form of ENTITLEMENT that individuals will never have.
Dan8267
2012 Dec 13, 2:58am
http://www.youtube.com/embed/juXjwNTMVlA
Get rid of the military industrial complex. Maintain a reasonable military at only 5% of its current budget and reduce the rich-poor gap so that welfare, unemployment, Medicare, and other entitlements aren't necessary, and the federal income tax could be completely eliminated.
It's the military complex and the war on the middle class that causes us to have run-away spending.
msilenus
2012 Dec 13, 3:10am
" TWO nations left in the world that insanely taxes the income of its citizens and corporations GLOBALLY."
If you provide a global war machine, global protection for those assets, then those corporations and citizens benefit from it.
Someone has to pay for it! You want American dominance, you want the greatest military force that ever existed?
Have you checked his claim?
I'm no tax expert, but my understanding is that the only kernel of truth to it deals with citizens living in other countries, who get a tax credit applied against their taxes in their country of origin. Most countries don't tax income like that at all. As I understand things, all other forms of foreign income are quite commonly taxed. If you'd been talking narrowly about situations where an individual person is actually living abroad, and if he'd confined his claim to individuals, then he'd have been participating in your conversation in a meaningful way.
121212
2012 Dec 13, 3:14am
Have you checked his claim?
Which part?
"" TWO nations left in the world that insanely taxes the income of its citizens and corporations GLOBALLY."" was made by
Melmakian
this was the point he was arguing against:
"1) Deferral of Income from Controlled Foreign Corporations
Multinational companies can defer paying U.S. income taxes until they transfer overseas profits back to the United States, under this law. In practice, many companies leave much of their profits overseas indefinitely, thus paying only the tax in the relevant foreign country, which is likely far lower than the U.S. rate, and avoiding U.S. taxes permanently. The list of corporations enlisting this loophole is seemingly endless.
5-yr Cost to Government: $172.1 billion
Who benefits: Every multinational company."
msilenus
2012 Dec 13, 3:20am
Right. Is the U.S. so nearly unique in taxing foreign corporate income at all?
Doubtful. If that were the case, there would be no need for the notion of a controlled foreign corporation, for example. But a number of countries have rules for those.
http://en.wikipedia.org/wiki/Controlled_foreign_corporation#German_rules
In my experience, the worst mistake you can make in debating an imbecile is to take their word on anything you do not already know to be true. When you allow false shared premises leak into a conversation, it can become impossible to shine a spotlight on truth.
That is because the US is one of only TWO nations left in the world that insanely taxes the income of its citizens and corporations GLOBALLY. The other nation is Eritrea.
Where do you get this stuff from? There are 171 counties that tax global income of it's citizens and residents. http://en.wikipedia.org/wiki/International_taxation The US and Eritrea are the only countries that taxes citizens when they are non resident. But you only pay the difference in the taxes if the US taxes are higher than the local taxes. You are obviously very confused on what all this means.
Of course corporations in other counties pay taxes on overseas profits, what are you talking about? Many countries tax global corporate income. Here are some examples from Ernst and Young's website. http://www.ey.com/GL/en/Services/Tax/Worldwide-Corporate-Tax-Guide---Country-list
Lets start with Germany, Canada, Japan, and China shall we? I'll throw in Argentina, South Africa, and Australia so all the continents are represented.
Corporations resident in Canada (whether owned by Canadians or nonresidents) are taxed on their worldwide income from all sources, including income from business or property and net taxable capital gains.
Corporations, such as stock corporations (Aktiengesellschaft, or AG) and limited liability companies (Gesellschaft mit beschraenkter Haftung, or GmbH), that have their corporate seat or place of management in Germany (resident corporations) are subject to corporate income tax (Koerperschaftsteuer) on worldwide income, unless otherwise provided in tax treaties.
Japanese domestic companies are subject to tax on their worldwide income, but nonresident companies pay taxes only on Japanese-source income. A domestic corporation is a corporation that is incorporated or has its head office in Japan.
Corporate residents of China are taxed on their worldwide income, including income from business operations, investment and other sources
Resident companies in Argentina are taxed on worldwide income.
Spain: Corporate tax is imposed on the income of companies and other entities and organizations that have a separate legal status. Resident entities are taxable on their worldwide income
An Australian resident corporation is subject to income tax on its nonexempt worldwide income
A residence-based tax system applies in South Africa. Companies are considered to be resident in South Africa if they are incorporated or have their place of effective management in South Africa.
South African-resident companies are taxed on their worldwide income.
Again you are very confused about international tax law. I'm not an expert, but I will accept Ernst & Young's word for it.
CL
2012 Dec 13, 4:11am
Where do you get this stuff from? There are 171 counties that tax global income of it's citizens and residents. http://en.wikipedia.org/wiki/International_taxation The US and Eritrea are the only countries that taxes citizens when they are non resident. But you only pay the difference in the taxes if the US taxes are higher than the local taxes. You are obviously very confused on what all this means.
Pesky facts!
Get rid of the military industrial complex. Maintain a reasonable military at only 5% of its current budget and reduce the rich-poor gap so that welfare, unemployment, Medicare, and other entitlements aren't necessary, and the federal income tax could be completely eliminated.
It's the military complex and the war on the middle class that causes us to have run-away spending.
Take the birth and death certificates for every state and terratory and figure out the total number of citizens that there are, and each pays accordingly for the protaction of them and their families. Do the same thing for funds to operate schools, based solely upon the number of house that are within the school district. Simple, no mulitple layers of buearocrats and their paper requirements, and the most efficient schools could actually charge a premium for added demand or added benefits.
Take the birth and death certificates for every state and terratory and figure out the total number of citizens that there are, and each pays accordingly for the protaction of them and their families.
So corporations get protection for free? Nice deal.
So corporations get protection for free? Nice deal.
A corp. isn't a person, regardless of what Scalia and Romney say to that matter. Get money from them in different ways, which is based upon profits ONLY, not by handing them(corps) free money for tax "credits". If they have to make money to survive, they undoubtedly will.
121212
2012 Dec 16, 2:41am
Boehner offers tax increase for entitlement cuts
WASHINGTON (Reuters) - U.S. House of Representatives Speaker John Boehner has offered to raise tax rates on high earners to break the "fiscal cliff" deadlock in exchange for major cuts in entitlement programs, but President Barack Obama is not ready to accept, a source said late Saturday.
While the White House considers Boehner's offer "progress," the source said more remained to be worked out between the two.
Tax rates are a major sticking point in negotiations to avert steep automatic tax hikes and budget cuts set for the end of the year if a deal isn't reached. Republicans have resisted Obama's demand to extend lower tax rates for everyone except top earners, preferring to extend them for all taxpayers.
The Boehner offer was the first departure from the position the House speaker has held for months.
U.S. corporations — like many Americans — exploit every available rule in the tax code to minimize the taxes they pay. The United States has one of the highest corporate tax rates in the world, at 35 percent (not including any state levies), yet the actual amount in corporate taxes that the government collects (“the effective tax rateâ€) is lower than those of Germany, Canada, Japan and China, among others. The reason is confusingly called “tax expenditures,†a doublespeak term designed to legitimize special interest tax breaks and loopholes.
Those ‘expenditures’ will cost the U.S. government $628.6 billion over the next five years, according to a 2010 report from the Tax Foundation. With advice from the Urban Institute’s Eric Toder, one of the country’s foremost authorities on corporate tax policy, we assembled the 10 most costly corporate tax loopholes and who benefits from them.
10) Graduated Corporate Income
This policy places the first $50,000 of a corporation’s profit at a 15 percent tax rate, with higher profit levels garnering higher tax rates, until it tops out at 35 percent for taxable corporate income exceeding $335,000. The result is that an owner of a small corporation pays only 15 percent in taxes on the first $50,000 of profit, leaving more left over potentially for reinvestment and growth.
5-yr Cost to Government (2011-2015): $16.4 billion
Who benefits: Individuals that own small corporations.
9) Inventory Property Sales
Foreign income of American companies is taxed in the country in which it is generated, and the U.S. gives a tax credit for that amount in order to avoid double taxation. Some companies have accumulated a glut of such tax credits (the “inventoryâ€), and in order to use them up, they artificially boost foreign income through a “title passage rule†that allows companies to allocate 50 percent of income from U.S. production sold in another country as income generated by that foreign country (the “property salesâ€).
5-yr Cost to Government: $16.7 billion
Who benefits: Multinationals with operations in high-tax foreign countries.
8) Research and Experimentation Tax Credit
Intended to spur research and development within companies, in its simplest form this break allows for a 20 percent tax credit for “qualified research expenses.†There are more complex applications, as well. Detractors complain that it is paying corporations to do research they would have done anyway.
5-yr Cost to Government: $29.8 billion
Who benefits: Pharmaceutical companies, high tech companies, engineers, agriculture conglomerates.
7) Deferred Taxes for Financial Firms on Certain Income Earned Overseas
Because most financial firms conduct their foreign operations as branches rather than as subsidiaries, as most companies in other industries do, they do not benefit from the tax breaks afforded to foreign subsidiaries. To compensate, this loophole enables financial firms to treat income from their foreign branches as if they were subsidiaries, along with all of the attendant tax benefits.
5-yr Cost to Government: $29.9 billion
Who benefits: Any financial firm with foreign operations.
6) Alcohol Fuel Credit
This is a tax credit for the production of alcohol-based fuel, most commonly ethanol, which is made from corn. The credit ranges from $0.39 to $0.60 per gallon. In theory, the credit is meant to encourage alternative forms of energy to imported oil. It is largely responsible for propping up the price of corn, and is extremely popular in corn-producing states like Iowa and Illinois.
5-yr Cost to Government: $32 billion
Who benefits: Food and agricultural conglomerates in the Midwest.
5) Credit for Low-Income Housing Investments
As you might expect, this one gives tax breaks to companies that develop low-income housing. It’s the rule that’s responsible for so many larger new developments setting aside 20 percent or 40 percent of their units for people whose income is well below the area’s median gross income.
5-yr Cost to Government: $34.5 billion
Who benefits: Real estate developers.
4) Accelerated Depreciation of Machinery and Equipment
This one allows companies to deduct for all of the depreciation of a piece of equipment at once (as opposed to over the, say, 20 years it actually takes the item to depreciate). This is the equivalent of the U.S. government giving the company an up-front, interest free loan. Congress recently made this expenditure temporarily even larger for 2011, to encourage investment in equipment.
5-yr Cost to Government: $51.7 billion
Who benefits: Airlines and manufacturers using large equipment that lasts many years.
3) Deduction for Domestic Manufacturing
This loophole enables a tax deduction for manufacturing activities conducted by American companies within the United States. It covers conventional manufacturers, but also extends to industries like software development and film production. The intent is to keep manufacturing from being outsourced.
5-yr Cost to Government: $58 billion
Who benefits: Any U.S. company that produces a product within U.S. borders.
2) Exclusion of Interest on State and Local Bonds
Companies (and individuals) do not pay federal income tax on interest from their investments in state and municipal bonds. What’s more, private companies can in some cases issue tax-free bonds of their own for projects that benefit the public, such as construction of an airport, stadium or hospital.
5-yr Cost to Government: $59.8 billion
Who benefits: High-income investors and corporations.
1) Deferral of Income from Controlled Foreign Corporations
Multinational companies can defer paying U.S. income taxes until they transfer overseas profits back to the United States, under this law. In practice, many companies leave much of their profits overseas indefinitely, thus paying only the tax in the relevant foreign country, which is likely far lower than the U.S. rate, and avoiding U.S. taxes permanently. The list of corporations enlisting this loophole is seemingly endless.
5-yr Cost to Government: $172.1 billion
Who benefits: Every multinational company.
#housing