Op-ed: Corporate tax reform should benefit domestic companies

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  • RedShirt USS Enterprise, UT
    Dec. 1, 2017 7:11 a.m.

    Reading the article, it sounds like the problem is the US tax system. If you want to eliminate all of those tax havens used to bring money back into the US that is simple. Reduce US tax rates so they are lower than the tax shelters. Turn the US into a tax shelter for the world.

    To "UtahBlueDevil" the problem isn't the tax rate itself, because corporations find ways around paying those taxes.

  • Lagomorph Salt Lake City, UT
    Nov. 30, 2017 5:16 p.m.

    UtahBlueDevil: "Rather than just give a general tax break to corporations, targeted credits for things that drive competitive advantage and job growth should be used. It could have the same next [net?] fiscal effect - but drive companies to not just pocket the returns, but to investment these funds back into innovation.... which is what drove our economic boom and security."

    Well, one of the features of the GOP tax plan will have a direct negative effect on innovation-- treating graduate student tuition waivers as taxable income will double or triple their income tax liability, rendering grad school unaffordable and sending students to MacDonald's. At least their fast food jobs won't be lost to automation soon because who will design the robots if there are no engineering grad students? It's hard for a nation to be competitive if it doesn't support research.

    We have seen tax rates decline since WWII, yet labor wages have been stagnant since 1980 and more wealth than ever is held by the C suites. Do we need more evidence that trickle down may sound plausible on the surface but does not reflect actual human/corporate behavior?

  • UtahBlueDevil Durham, NC
    Nov. 30, 2017 12:34 p.m.

    " So, according to you guys, if I or any business can keep more of my money, we will have less? Really? I am pretty sure if own a business and can keep more of my money, I will have more money to spend on expanding, growing, hiring, development and production! If I have less money, I will do less expanding, growing, developing, hiring and producing! "

    Thid - here is the problem. You obviously don't understand what companies pay taxes on. They don't pay taxes on top line revenue - but after expenses profits. Every one of those things you mentioned is not impacted on bit by the tax rate. If a company takes in 100 dollars, and spends 88 on expenses... they pay tax on only 12. If they up their investments, increase salaries, etc, to say 92 - they now pay taxes on only 8.

    What you are claiming isn't how it works..... After tax income goes to owners and investors. Any money spent on the things you mention are already before tax expenses, and would drive down taxes if companies actually did what you enumerate.

    Its accounting 101 my friend. Taxes - after expenses - not before.

  • Furry1993 Ogden, UT
    Nov. 30, 2017 10:45 a.m.

    The corporate tax reform should be specifically tied to a requirement that at least the amount of tax decrease received by the company be immediately turned around into wage increase and additional hiring. NOT debt reduction, CEO bonuses, increased shareholder returns, etc. Donnie, et al, claim that the corporate tax reform will cause increased wages and employment. Require that this happens, or don't reduce the amount of corporate taxes.

  • pragmatistferlife Salt Lake City, UT
    Nov. 30, 2017 9:29 a.m.

    Thid.."Great article! Pass tax reform and watch our economy become the envy of the world and tax revenue sky rocket! "

    Once again you are blinded by your partisanship. The reform the article is proposing is a tax increase on businesses. It simply eliminates a foreign division from hiding it's American sales obligations.

    Again blinded. "I am pretty sure if own a business and can keep more of my money, I will have more money to spend on expanding, growing, hiring, development and production! "

    True as a fact completely false as a practice. Businesses have openly said they will use the tax breaks in this bill to 1) reduce corporate debt, and 2) increase stock buy backs. Both put money directly in stockholders pockets. Expanding, growing, somewhere around their 5th priority.

    You are being fooled bigly.

  • Prometheus Platypus Orem, UT
    Nov. 30, 2017 8:39 a.m.

    Thid, you seem quite content with repeating the lies told by the GOP for 40 years.

    The facts have been given to you, but you refuse to even consider reality.

    Believing that giving all your paycheck to your boss and then he and the shareholders will fairly decide your compensation is brave, but fool hardy, and never actually works out for the employee.

  • Thid Barker Victor, ID
    Nov. 30, 2017 7:06 a.m.

    @Shaun: For anyone who runs a business, less does not equal more and more does not equal less! Some business expenses are tax deductible but I know of none that are 100% deductible and heaven help a business if they make a profit, which is where all expansion and growth (including hiring) comes from! If you don't make adequate profit, you ain't likely to expand! Making a profit is the necessary goal of ANY competitive business! Try running a business that can't make a profit and see how long you can keep your doors open! Pass tax reform and America will become the economic envy of the world and tax revenue will sky rocket! Or we could just keep going like we have for the last 8 years with our economy limping along at 1-2% growth, wages stagnant and add another $12 trillion to the national debt! Time for a change! There must be a reason why consumer confidence is at an all time high since the election and the DOW is white hot! Americans have hope, again! Its so simple!

  • Fred44 Salt Lake City, Utah
    Nov. 30, 2017 5:47 a.m.

    Thid,

    So corporations are currently making record profits and not investing in employee compensation. What is the magic profit number for a corporation to start putting some of that profit into its work force (middle class people). This tax cut will go to stalk buy backs and CEO bonuses and shareholders. Please don't play the middle class people own stock because over 80% of the stocks are owned by the wealthy.

    Just a simple answer at what profit level do corporation say I am going to share some of this benefit with my workers?

  • SMcloud Sandy, UT
    Nov. 30, 2017 4:45 a.m.

    These tax cuts are really just for millionaires. They say it's to "stimulate the economy" but there is no evidence that it will even work. None.

    Trickle down economics doesn't work. It's never worked. The people on top just give themselves a bigger raise and continue to ship the labor overseas.

  • Shaun Sandy, UT
    Nov. 29, 2017 10:56 p.m.

    @thid

    You realize most businesses expenses are tax deductible, which means it lowers the tax liability of the business. If after all your expenses you have 100k in profit then you are taxed on that. However, nothing is stopping the business from investing that money(equipment, employees, etc) into the business instead of taking a profit, which would lower their tax liability. Think about Amazon, I do not think they have posted a profit in years but they are growing.

    Also I am not against tax cuts, I am against this tax cut because it will add to the debt needlessly and it doesn't benefit the middle class enough to justify adding 1.5 more trillion to the debt.

  • Thid Barker Victor, ID
    Nov. 29, 2017 9:33 p.m.

    @ Shaun & Utah Blue: So, according to you guys, if I or any business can keep more of my money, we will have less? Really? I am pretty sure if own a business and can keep more of my money, I will have more money to spend on expanding, growing, hiring, development and production! If I have less money, I will do less expanding, growing, developing, hiring and producing! If I own a business in America and am forced to pay 10-15% higher taxes than my foreign competitors, I probably won't be in business in America very long, nor will I be able to hire employees, develop and produce anything! People with good jobs pay more taxes than people without good jobs and especially pay more taxes in America than foreign workers! Pass this tax reform! We are already off to a great start thanks to President Trump! GDP is over 3% so far and the DOW in on fire! Pass tax reform and create trillions in new wealth for Americans, not the Chinese! It is so very simple, isn't it?

  • Shaun Sandy, UT
    Nov. 29, 2017 7:16 p.m.

    @Thid

    All that is going to happen is bigger checks to shareholders or stock buybacks. This is tax reform isn't reaching main street and it is sad that people think that it will.

  • UtahBlueDevil Durham, NC
    Nov. 29, 2017 6:50 p.m.

    Thid .... here is the problem...... our biggest economic booms happened not because of tax policy, but rather because of innovation that gave the US a technological edge over other countries. The US investment in both the semi-conductor (largely funded via grants from the NASA, DoD & DoE) and energy (Same groups).

    The top statutory corporate tax rate has been falling since the early 1950s. The top corporate tax rate was 52 percent throughout the Eisenhower administration—17 percentage points higher than the current top rate of 35 percent. U.S. GDP grew by almost 4 percent annually in the 1950s compared with a 1.8 percent growth rate in the 2000s when it was far lower.

    There is very low correlation to corporate tax rates and GDP growth. Rather than just give a general tax break to corporations, targeted credits for things that drive competitive advantage and job growth should be used. It could have the same next fiscal effect - but drive companies to not just pocket the returns, but to investment these funds back into innovation.... which is what drove our economic boom and security.

  • Thid Barker Victor, ID
    Nov. 29, 2017 5:58 p.m.

    Great article! Pass tax reform and watch our economy become the envy of the world and tax revenue sky rocket! American workers pay taxes to America, foreign workers pay no American taxes! Wealth is created by productivity (goods and services) and more businesses will drive up wages, personal wealth and tax revenue. Or we could go 8 more years with a sluggish economy, stagnet wages and add another $12 trillion to the national debt! It's that simple!