PopeRatzo's Journal: Corporation That Pays Nothing in Taxes Complains that Taxes are Too High

Stunning hubris.

Uh... wrong.

[logical_failure]

Just because they didn't pay corporate income taxes does not mean they didn't pay anything in Payroll taxes.

So they did, in fact, pay taxes, and the entire premise of the article and your journal entry is flawed.

P.S. Barack Obama is a stuttering clusterfuck of a miserable failure.

Re:

[PopeRatzo]

Just because they didn't pay corporate income taxes does not mean they didn't pay anything in Payroll taxes.

Please understand that payroll taxes are computed as a portion of employee compensation. It's not a tax in any way on income. When a company sets the cost of having an employee, the payroll taxes are added to the cost of having that employee. Those taxes don't go to the operation of government (even if the collected Payroll taxes are borrowed against).

My point is that for those years where no incom

Re:

[logical_failure]

It's not a tax in any way on income. When a company sets the cost of having an employee, the payroll taxes are added to the cost of having that employee. Those taxes don't go to the operation of government (even if the collected Payroll taxes are borrowed against).

Of course those taxes go to the operation of Government, all taxes do.

Now, imagine a small business with a payroll budget of 100K.

They need to hire a third person, but they can't. They've hired 2 people at a cost of $40K / year.

Now drop

Re:

[PopeRatzo]

Companies do not pay any taxes. They're all passed on to the next guy in line

That's provably false. Companies cannot just "pass on to the next guy" as long as there is any competition at all.

Further, we're not talking about a value-added tax here, where the cost increases at every step of production so that it must be passed along to the consumer.

If a company makes $9.7 billion in profit instead of $10billion because they paid a few percent in taxes does not mean they're going to pass the difference along

Re:

[PopeRatzo]

If taxes go up, prices will rise.

That's not what happened when the US had a >90% top tax rate and it's not what's happened in countries that have higher corporate income tax rates.

The corporate tax rate in the US has changed over the years without any apparent direct effect on prices.

That's not the case with value-added taxes. Those raise prices. But taxes on corporate earnings have not caused prices to rise any more than countries with no corporate income tax enjoy lower prices.

Re:

[PopeRatzo]

Of course those taxes go to the operation of Government, all taxes do.

No, they do not.

Now, imagine a small business with a payroll budget of 100K.

I can do that, but that small business is actually paying income taxes unlike the company in this story, Corning.

ow drop this companies taxes, and the cost of the employee drops to $30K / year

Again, you're equating payroll taxes with income tax. They are not the same thing.

the company is right, and their taxes are like the rent - just too damn high.

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