Debt Ceiling, Taxes, Stimulus

[Thrif-t]

Everyone always wants to talk about our jobs going over seas, but I think the real reason we've lost jobs is automation and the advancement of technology. Being able to do more with less. That is the real reason for the loss of a lot of jobs. We need another industrial revolution.

[pflyers85]

I've never understood the idea of wanting to raise corporate taxes. The US already has the 3rd highest corporate tax rate in the world. Corporations do not pay the taxes anyway. They simply build the cost of the taxes into the price of the goods and services they sell to the public. So while a tax increase on corporations will feel good and appeal to the emotions of leftists, the reality is they are saddling themselves and the "little guy" with the taxes.

Fishingdude said it correctly. We don't have a revenue problem, Washington has a spending problem.

As far as job losses from automation and technology there are certainly some losses there but there have also been more lucrative and productive jobs created because of advancements in tech. There are jobs out there in many cases there is just a deficit in talent needed to fill many of these jobs. Those that are succeeding in the labor force are constantly learning new skills and educating themselves traditionally and vocationally. The days of working in the local plant and getting modest raises simply for showing up and accruing seniority are history. Adapt or die.

[Singuy]

Corporation actually don't bill the taxes into the goods we buy because they don't pay the taxes period!

There are two type of corporations.

S-corp(Small-corp) consist of 75 shareholders or less. This means most mom and pops falls under S-corp. S-corp are exempt from any corporation taxes. All profit can be distributed to the shareholders, and the shareholders will just need to pay their personal income tax.

C-corp consist of 76 shareholders or more. All profits from the C-corp doesn't pass through to the shareholders WITHOUT it being taxed at the corporate rate(the tax we are discussing). Essentially most people cry foul and calls this DOUBLE taxation. The corporation gets a separate tax and then the individual shareholder gets taxed again based on their personal federal income tax bracket.

You see how no one want in their right mind would want to pay corporate taxes. What can they do? Reinvest and call it expenses. Buy company cars, take employees out...hire more employees...build another building...anything they can do to get out of the corporation tax.

So how are money earned if all the profits are spent within the company?

Ceo: Gets a salary and majority and shares of the company. Corporation is making good profit, worth of the company goes up..CEO's net worth increases. This is how Steve Jobs can take a salary of 1 dollar and he is still okay (essentially he is paying 0 payroll taxes with that salary and bypassing personal federal income taxes). Net worth of the company in stocks can be sold at a capital gaines tax rate.

So Gross-expenses(meaning payroll + reinvestment) = profit..which can be taxed at the corporate rate. If your Gross-expenses=0, you pay no corporate taxes. And that's how the game is played. Increasing/decreasing corporate taxes is nothing but politics. 20% of the top U.S corporations pay 0 corporate taxes.

[StormRichards]

Ceo: Gets a salary and majority and shares of the company. Corporation is making good profit, worth of the company goes up..CEO's net worth increases. This is how Steve Jobs can take a salary of 1 dollar and he is still okay (essentially he is paying 0 payroll taxes with that salary and bypassing personal federal income taxes). Net worth of the company in stocks can be sold at a capital gaines tax rate.

Steve Jobs died in 2011

[Singuy]

Steve Jobs died in 2011

You sir, gets a slow golf clap

[StormRichards]

You sir, gets a slow golf clap

[LivingAlmostLarge]

I've never understood the idea of wanting to raise corporate taxes. The US already has the 3rd highest corporate tax rate in the world. Corporations do not pay the taxes anyway. They simply build the cost of the taxes into the price of the goods and services they sell to the public. So while a tax increase on corporations will feel good and appeal to the emotions of leftists, the reality is they are saddling themselves and the "little guy" with the taxes.

Fishingdude said it correctly. We don't have a revenue problem, Washington has a spending problem.

As far as job losses from automation and technology there are certainly some losses there but there have also been more lucrative and productive jobs created because of advancements in tech. There are jobs out there in many cases there is just a deficit in talent needed to fill many of these jobs. Those that are succeeding in the labor force are constantly learning new skills and educating themselves traditionally and vocationally. The days of working in the local plant and getting modest raises simply for showing up and accruing seniority are history. Adapt or die.

Okay so we cut taxes for corporations and people. Sounds like a plan I can get behind and see how it stimulates the economy. But you said Washington has a spending problem. How do you fund an infrastructure plan while cutting? Isn't the idea behind stimulating the economy with a infrastructure plan spending more?

[pflyers85]

Okay so we cut taxes for corporations and people. Sounds like a plan I can get behind and see how it stimulates the economy. But you said Washington has a spending problem. How do you fund an infrastructure plan while cutting? Isn't the idea behind stimulating the economy with a infrastructure plan spending more?

What I would do is drastically reduce the size of our military stop our global policing around the world. I know Trump has campaigned not to do that and its unpopular among many Republicans but I would definitely reallocate those funds for infrastructure projects. It's time to spend money on the US rather than the rest of the world.

Spending on infrastructure is not really stimulus. It's a necessary expense and while it is easy to see the jobs created because of it what you don't see are the jobs not created and other opportunities lost because of such an undertaking. Its a great example of the broken window fallacy.

[LivingAlmostLarge]

I did like the doveish nature of Trump plan. I want the US to stop policing but I feel like saying we should downsize the military makes people upset. It makes people say you aren't patriotic. Or don't understand being in the military. I'm not sure cutting the military is realistic.

The infrastructure projects are desperately needed in so many cities. Any major city probably has massive traffic problems and could really use money to figuring out how to solve our car dependency.