Your opinions on this Graphic Chart - from moveon

[Lord Xar]

Your take on this:

http:**front.moveon.org/corporate-taxes-1955-vs-2010/#.Tg3hcak-PTc.facebook

Are the numbers fudged here, or this more "look at these numbers (but ignore this stuff over here)"?

[Danke]

Corporations don't pay taxes. Their shareholders, employees and consumers do.

[ItsTime]

Want to throw them for a loop? Ask them if a corporation should be treated like an individual? Once they say no, then ask them why they should be taxed?

They are also missing this chart:
By leaving it out they are ignoring the fact the lower the tax rate the more taxes you take in.

http://www.project.org/images/graphs/Corporate_Tax_Rates.jpg

Found this comment funny


Agreed... Also, Move-On is a 501(c)(4) nonprofit organization. They bring in revenue in the millions each year. One year they brought in $11,000,000.00 This organization pays zero income taxes. Should the IRS look into their status so they and other Nonprofits that are not what they say they are, pay their fair share of taxes? Are they a non-bias entity, worthy of a non-for-profit status? Move-On needs to pay their share of taxes.

[Lord Xar]

If that is the case, why do corporations pay any taxes at all? And the taxes are on "something" right - the profits. I am just trying to figure out the reasoning behind the graphic.

[dannno]

One part of the explanation could be that most corporations do their manufacturing out of the country. So corporations don't pay U.S. taxes on profit being made by the manufacturer, which used to be done here. Now we just have a lot more service sector employees who are paying taxes.

I wonder if it has anything to do with corporations being bigger now-a-days.

Before you had maybe 100-1,000 people on average working for a corporation.

Now-a-days you probably have 200-10,000 people working for a single corporation.

No doubt there are tax loopholes and the bigger corporations have a lot of incentive to find ways to get around these.

[Lord Xar]

They are also missing this chart:
By leaving it out they are ignoring the fact the lower the tax rate the more taxes you take in.

I am not getting that!! lol. How is it that if you lower tax rates the more taxes you take in? The more you tax, the the more you get? I feel like a neophyte.

[dannno]

If that is the case, why do corporations pay any taxes at all?

They shouldn't, but I would still get rid of the individual income tax first and hope to reduce corporate taxes in the long run as we figure out ways to abolish the whole corporate personhood thing.

[dannno]

I am not getting that!! lol. How is it that if you lower tax rates the more taxes you take in? The more you tax, the the more you get? I feel like a neophyte.

When you reduce the tax rate, it increases the profitability of businesses and has a cascading effect on the entire economy.

So if you reduce taxes by 5%, you might see income and profits go up by 8-10%, and you could end up collecting more in tax revenue.

[ItsTime]

What danno said.

[Acala]

I am not getting that!! lol. How is it that if you lower tax rates the more taxes you take in? The more you tax, the the more you get? I feel like a neophyte.

This is the famous Laffer curve. The idea is that at some point the higher revenue from higher tax rates is offset by losses from tax avoidance and decreases in productivity that are caused by higher taxes.