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Charles Krauthammer: Solution to inversion is to lower corporate tax rates

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  • GaryO Virginia Beach, VA
    Aug. 28, 2014 8:00 p.m.

    I would be amenable to lowering the corporate tax rate IF and only if we greatly increase the tax rate for the high tax bracket . . . At LEAST to 70 percent, but why stop there?

    After all, most corporate income goes to America's highest earners.

    Besides, we really need to address income inequality AND the lack of revenue we've experienced since the silly Supply-side fad began during the Reagan administration.

    Obviously Trickle-down economics never worked anyway . . . so let's bump up that tax rate for high earners to where it was when the nation actually paid its bills.

  • Sven Morgan, UT
    Aug. 28, 2014 8:59 p.m.

    So GaryO, you don't like "income inequality" aye? Why don't you Liberals put your silly slogans where your mouths are. I mean, after-all, it isn't fair that you make more than a homeless person...right? Come on, show us how it's done; find one or two deserving low income wage earners (or no wage earners), and commit to writing them a check every two weeks for say...$250.00. After-all, fair is fair. If it's good for the wealthy, it should be good for you. Remember, to some in our society, you'd be considered rich.

    This will make you feel almost as good as wearing a ribbon for the latest caused du jour.

  • BioPowertrain Detroit, MI
    Aug. 28, 2014 9:12 p.m.

    It's been awhile, but finally here's an article I agree with. Our corporate tax rates smother the entrepreneurial spirit and severely curb growth. Also, you can try fighting it all you want, but the cat is out of the bag. We have to reduce to parity rates or capital will continue to fly out of our economy along with all their engineering, financial & manufacturing jobs. Which means a double-whammy: no corporate profit taxes and no individual income taxes. This has to change or we're done.
    Thanks Mr. Krauthammer. One follow-up request: lose the snark. It accomplishes nothing helpful and gets the other side of the team's back up.

  • David Centerville, UT
    Aug. 28, 2014 9:14 p.m.

    Democrats accuse Corporations of moving overseas to avoid taxes.

    But it is the Democrats that have put US Corporations at a distinct disadvantage through the high corporate taxes. The Democrat-supported Unions, the Democrats support for increased minimum wage, the Democrats high corporate tax rates.

    Why has corporations, and manufacturing, and jobs moved overseas?

    Because of Democrats.

  • atl134 Salt Lake City, UT
    Aug. 28, 2014 9:27 p.m.

    @Sven
    You clearly don't get it, or you're just pretending you don't... remember liberals pay taxes too.

  • one vote Salt Lake City, UT
    Aug. 28, 2014 9:44 p.m.

    Koch brothers will have more profits to pay pundits to spin for more profits.

  • RRB SLC, UT
    Aug. 28, 2014 10:29 p.m.

    The corporate rates are lower now than they have been the past 60+ years. Notice since 1990 small business has been penalized, while mega corporations have been rewarded.
    1950 over $25,000 42%
    1960 Over $25,000 52%
    1970 Over $25,000 49%
    1980 Over $100,000 46%
    1990 $100,000-$335,000 39%
    Over $335,000 34%
    2000 $15,000,000-$18,333,333 38%
    Over $18,333,333 35%

    Some companies are going to find any way they can to make money. They have no loyalty to their country. Instead of rewarding them, let's reward the companies that keep their home offices here and close the loophole.

  • Sven Morgan, UT
    Aug. 28, 2014 10:40 p.m.

    atl134 said:

    "You clearly don't get it, or you're just pretending you don't... remember liberals pay taxes too."

    =====

    And the rich pay taxes too (Kind of a circular argument).

    The top 10% income earners in the Unites States pay 70% of the federal income tax burden. About 47% of the US population pay no federal taxes. Other low income earners receive the Earned Income Tax Credit. Basically, they get rewarded and paid by the other tax payers, for not paying any federal income taxes. How are they paying their "fair share"?

    Please spare us the never ending Marxist class warfare nonsense. The rich are paying more in federal income taxes since the late 1970s.

    Liberal hypocrisy is stunning! If you folks on the Left can smear "rich" people because they happen to make more than others in our society, why can't the same charge be made against liberals like GaryO? The fact is, to some in our nation, GaryO would be considered rich. Rich is a relative term. If GaryO can demand that the rich pay more, I can make the same demands of him...right? My original challenge to GaryO stands. Are you up for the challenge also?

  • Sven Morgan, UT
    Aug. 28, 2014 10:41 p.m.

    one vote said:

    "Koch brothers will have more profits to pay pundits to spin for more profits."

    Kind of like George Soros...right?

  • Howard Beal Provo, UT
    Aug. 28, 2014 11:00 p.m.

    All I know is that I'll skip eating at Burger King...

  • Hutterite American Fork, UT
    Aug. 28, 2014 11:00 p.m.

    In some odd way, I'm thinking of myself as analogous to burger king these days. Whenever I return home to see the doctor or go to the office, I return with as much coffee from Timmy's as I can find space for. And I know that I must renounce US citizenship when I retire regardless of whether or not I keep my home in AF, or Dolan Springs, or wherever. The taxes are too much; the health care too little.

  • high school fan Huntington, UT
    Aug. 28, 2014 11:12 p.m.

    Who doesn't agree with the notion that everyone should pay something in the way of taxes to live in this country, even if it is just $10.00 or so. And as for the notion of who owns the big corporations, it is generally each of us since most of us have an IRA or a 401k. Most corporations are owned by stockholders, people just like you and I.

  • sammyg Springville, UT
    Aug. 29, 2014 3:12 a.m.

    With 1/3 of our population on gov't 'benefits' and trillions of debt, one can only assume that taxes are going up.

    Kudos to Burger King for using the tax-code to their advantage. This fake outrage over a company mitigating their tax exposure should be just the opposite.

    The idea of paying a 'fair-share' and penalizing companies thru the tax code is ridiculous. Companies should be incentivized when they create jobs and broaden the overall tax base.

    We all know that these taxes are simply passed on to the consumer in higher prices.

    Gov't need to restrain itself, lower the corporate taxes to entice companies to stay, and rebalance the tax base across the board.

    1/3 of our population on gov't welfare is going to destroy us.

  • JoeBlow Far East USA, SC
    Aug. 29, 2014 6:05 a.m.

    Our corporate tax rates have been steady for a while. They are effectively the same as under Reagan. Bush did not lower them with a gop congress.

    So, why the complaints now? Did Bush lower corp tax rates with a GOP congress? NOPE.

    Second point. Yes, there are industrialized countries with lower corporate tax rates. But, generally their individual tax rates are higher.

    Our big revenue outlays are SS, Medicare and Military. It is unreasonable to lower tax rates (corporate or individual) unless one is to make significant cuts in these 3.

    The right screams for lower tax rates but does not make cuts to the significant spending drivers.

    This is a recipe for increased deficits.

    Lets drop the partisan snipping and actually address the problem.

    You cant have lower individual tax rates AND lower corporate tax rates without cutting spending on SS, Medicare and defense.

    Basic math.

  • The Real Maverick Orem, UT
    Aug. 29, 2014 6:13 a.m.

    We don't negotiate with terrorists.

    If corporations feel such a need to blackmail the American people by moving overseas in ridiculous inversion scams then I think we should fight back. Time to take away subsidies and other handouts. If corporations feel like they can force our hand then we really should remind them who boss. And while they're making record profits, it's ridiculous for them to claim that taxes are too high. It's the gilded age all over again.

    The tail should never wag the dog. I say take away their corporate handouts.

    Besides, how else will we fund Charles' desired wars in the Middle East?

  • Happy Valley Heretic Orem, UT
    Aug. 29, 2014 6:20 a.m.

    So there the lowest they've been but it aint low enough for the greedy.
    So lower lower taxes will help America? Because the GOP believe if we give it away, a miracle will happen and the deficit will go away.

    98% of the tax code is for 1% of the population, written by their lawyers, and accountants, codified into law by bribing our politicians with lobbyist to the point where they pay very little anyway.

    But since Corporations have no soul, no moral compass. just profit for motivation, there is no loyalty to nation, community or person. We have let them buy and sell America. It's not the people it's the "New People." who will never die, just dissolved, and sold for the assets.

  • JoeBlow Far East USA, SC
    Aug. 29, 2014 6:27 a.m.

    Large, profitable U.S. corporations paid an average effective federal tax rate of 12.6% in 2010, the Government Accountability Office said Monday.
    Source MoneyCNN - July 2013

    The federal corporate tax rate stands at 35%, and jumps to 39.2% when state rates are taken into account. But thanks to things like tax credits, exemptions and offshore tax havens, the actual tax burden of American companies is much lower.

    In a report commissioned by Senators Carl Levin (D-Mich.) and Tom Coburn (R.-Okla.), the GAO looked at taxes paid by profitable U.S. corporations with at least $10 million in assets.

    Even when foreign, state and local taxes were taken into account, the companies paid only 16.9% of their worldwide income in taxes in 2010.

    ___
    Look at historical US corporate tax rates and tell me what years they have been lower.

    Yes, we can always find countries with lower tax rates. Is that now where we have set the bar?

  • FT salt lake city, UT
    Aug. 29, 2014 7:13 a.m.

    @Howard Beal
    Spot on. Let all the talking heads argue about tax rates while the common people decide who gets their money. Amercians have bled and helped fund BK into what it is today. Now they decide it's in their best interest to move their HQ elsewhere. Good bye, you won't be missed.

  • Thid Barker Victor, ID
    Aug. 29, 2014 8:34 a.m.

    @ FT. Americans have "bled" to make BK what it is today? No one is bleeding at BK, only a few irrational dupes are hyperventilating because Americans choose to buy BK's products. They CHOOSE to patronize BK because BK offers them something they enjoy! Its called freedom! Free choice is so irritating isn't it? In the meantime, BK will expand, hire more people, pay more taxes and make everyone's life better, except yours!

  • GaryO Virginia Beach, VA
    Aug. 29, 2014 9:04 a.m.

    Hey David -

    "Why has corporations, and manufacturing, and jobs moved overseas?"

    They has moved overseas in order to maximize profit . . . Cheaper Labor, Lower taxes, and less concern over environmental issues.

    That's what capitalism is all about, isn't it? . . . Maximizing profit.

    That's whated Republicans want, and that's exactly what they got.

    So . . . You're saying you're upset with the policies you promoted?

  • Ultra Bob Cottonwood Heights, UT
    Aug. 29, 2014 9:11 a.m.

    There is a way to eliminate all the problems caused by corporate tax rates. Remove all business income taxes in favor of a flat rate personal income tax. Government should be paid for by all members of the society with a fair and equal percentage tax.

    The flat rate income tax would be withheld and paid to the government by all businesses in America and never broken down by individuals. Therefore, no need for personal income tax returns. It doesn't matter where in the world the owner of the business is, the personal income tax will be collected at and for all business operations in the USA.

  • cjb Bountiful, UT
    Aug. 29, 2014 9:19 a.m.

    Yes Charles Krauthammer, the solution to stop corporate inversions is to lower corporate income taxes. But how is this to happen if we keep going to war, spending trillions each time? That money needs to come from somewhere. We have to decide. Do we want to be the worlds babysitter or do we want to focus on fixing what is wrong with the United States?

  • UtahBlueDevil Durham, NC
    Aug. 29, 2014 9:23 a.m.

    I am not sure that general "lowering" is the issue. When you have 20 of some of the largest US corporations paying no US taxes, lower is a relative term. What business (and people alike - oh wait - business are people) need is a simplified tax code. Besides being an employee of one of the US leading companies, I am also a small business holder in that my properties are organized as a corporation. The tax code that controls these is amazingly complex and cumbersome. There isn't a single year where I don't have a surprise.

    We need a simple to understand and predictable tax code. The Tax code is just too complex. I want to be able to know exactly what my tax exposure is, and what it will be for the next 5 years. I can deal with what ever it is - or will be. But uncertainty is my biggest "loose sleep at night" issue.

  • There You Go Again Saint George, UT
    Aug. 29, 2014 9:35 a.m.

    Cut corporate tax rates to Zero.

    Corporations will flock to the United States providing jobs for all Americans...forever.

    Right?

    BTW,

    A similar tax holiday for all 401k accounts would be appreciated for all us un-washed masses.

    All of that money would funnel back into the economy...forever.

    Right?

    Thanks.

  • Say No to BO Mapleton, UT
    Aug. 29, 2014 9:47 a.m.

    To all you big government advocates, I have a question.
    Do you think our government should tax the international operations of US companies?
    That is the real issue regarding inversion. Our tax code taxes these companies for their activities outside the USA. Overreach, anyone?

  • David Centerville, UT
    Aug. 29, 2014 10:39 a.m.

    GaryO

    I am upset with the poor economy, the lack of good jobs, and the government stifling opportunity for real growth. It is the Democrats that have created this mess of corporations moving overseas to seek lower tax rates. Democrats strive to increase minimum wage. Democrats work to increase the influence and strength of unions. Democrats want higher taxes, fees, and regulations for corporations and businesses. Yes it is corporations that are moving overseas. But it is Democrats that have caused the movement.

    JoeBlow has stated the actual corporate tax rate is much lower than the 39%. Well, Republicans have presented a solution: lower the overall tax rates for individuals and corporations, eliminate all (or nearly all) tax write-offs and loop holes, while broadening the tax base. I support this proposal and plan. When nearly 50% of Americans pay no taxes, the burden falls upon a shrinking group of people.

    It is past time for government to stop playing favorites with Americans, lobbyists, groups, and select businesses. Treat everyone equal

    Democrats have divided the country, reinforced class warfare, encouraged movement of jobs overseas, and weakened our nation.

  • JoeBlow Far East USA, SC
    Aug. 29, 2014 11:58 a.m.

    " Well, Republicans have presented a solution: lower the overall tax rates for individuals and corporations, eliminate all (or nearly all) tax write-offs and loop holes, while broadening the tax base. I support this proposal and plan."

    Have they? Where is it? Link please. What "tax write-offs and loop holes" specifically are they proposing to eliminate.

    Romney did elude to a plan, but included no specifics. Kind of hard to "support this proposal and plan" without knowing the details.

    The corporate tax rate has been fairly static for a long time. Again, I will ask. When has it been lower?

    Just like individual tax rates. They are fairly low historically.

    According to the GAO, the effective corporate tax rate has been sub 17% for large corporations. Whose is lower? And of those countries, what are their individual tax rates?

    The devil is in the details. Not high level platitudes.

  • atl134 Salt Lake City, UT
    Aug. 29, 2014 1:49 p.m.

    @Sven
    "The rich are paying more in federal income taxes since the late 1970s."

    When they're getting most of the gains and have a net benefit in terms of wealth/income share since the 1970s their tax proportion better be going up. Wealth inequality has increased substantially since the 1970s so they sure aren't hurting.

  • atl134 Salt Lake City, UT
    Aug. 29, 2014 1:54 p.m.

    @Sven
    "Are you up for the challenge also?"

    No, because as you said we all pay taxes into this system so I already made my contribution. Plus I'm a college student, not exactly a wealthy demographic.

    By the way, the Earned Income Tax Credit was created by Republicans who thought that would encourage work moreso than larger welfare checks. Apparently you all just have issues with poor people because you begrudge them for the EITC too.

  • Sven Morgan, UT
    Aug. 29, 2014 6:35 p.m.

    atl134 said:

    "When they're getting most of the gains and have a net benefit in terms of wealth/income share since the 1970s their tax proportion better be going up..."

    So, you're saying that the top 10% of American wage earners, who pay 70% of the federal tax burden, still aren't paying their fair share? Not only are they paying their fair share, they're doing something that liberals like yourself aren't doing; THEY'RE CREATING JOBS and strengthening the economy!

    "No, because as you said we all pay taxes into this system so I already made my contribution. Plus I'm a college student, not exactly a wealthy demographic."

    And the top 10% of wage earners have made their "contribution."

    So, it’s okay for you to demand that one group of people give other people more of their money, but when the same demands are made of you, we get nothing but excuses as to why you shouldn’t give more? You make more money, and have more opportunities than other Americans, and this isn’t fair. Class warfare dictates that those making less income than you have every right to demand that you pay more!

  • Howard Beal Provo, UT
    Aug. 29, 2014 11:33 p.m.

    Thid Barker:

    I will enjoy my freedom to eat at In and Out. They are responsible corporatists--yes they do exist. They give out a higher quality product, pay higher wages than Burger King and have their headquarters in the USA.

    They are also very profitable...

  • Shaun Sandy, UT
    Aug. 30, 2014 8:02 a.m.

    I found out the other day that I was in the top ten percent of income earners. I am also a member in a private union, which helps me get into the top ten percent of income.

    All I know is our tax system punishes the little guy more than the people at the top. I could work more hours and make it into the top five percent of income earners but people who are a w2 employee start losing a lot of tax breaks once they start making over 100k. So why strive to make 250k especially if I would have to work 6 days a week for 12 hours a day to make that?

  • What in Tucket? Provo, UT
    Aug. 30, 2014 10:25 a.m.

    The democratic response to the high tax rate for corporations is that many receive subsidies and discounts. This is true, but far better to lower the rate from 40% to 25% this would help a lot of companies. Red tape is also excessive. One builder said he could not expand due to the red tape. This may be multiplied a lot of time.

  • wrz Phoenix, AZ
    Aug. 30, 2014 9:26 p.m.

    @sammyg:
    "We all know that these taxes are simply passed on to the consumer in higher prices."

    You got that right. Essentially, corporations don't pay taxes. Only people pay taxes. Any 'tax' a corporation pays is added to the cost of goods and services and charged to the buying public.

  • wrz Phoenix, AZ
    Aug. 30, 2014 9:33 p.m.

    @Happy Valley Heretic:
    "But since Corporations have no soul, no moral compass. just profit for motivation, there is no loyalty to nation, community or person."

    The prime objective of corporations (and for that matter any business) is to maximize profits for owners (shareholders). Anyone who wishes to join in and realize part of the corporate wealth are free to contact their brokers and buy some corporate stock.

  • Baron Scarpia Logan, UT
    Aug. 31, 2014 8:17 a.m.

    Yes, we should look at our corporate tax rates, but we should also limit the rights of foreign companies operating in the U.S.

    That is, if you're a company based in Bermuda, don't come running to Uncle Sam when the Chinese steal your technology or South American drug lords threaten your operations or Mideast terrors threaten your oil fields -- go to the Bermuda government. Let Bermuda (or Canada or Cayman Islands or where ever corporations are going these days), its court system, and regulatory agencies handle your international counterfeiting, legal, and copyright issues.

    If corporations are not American "citizens"? Don't expect the benefits and privileges of U.S. government protections!

  • U-tar Woodland Hills, UT
    Sept. 1, 2014 8:58 a.m.

    I vote liberal Democrats pay all the taxes.

  • OHBU Columbus, OH
    Sept. 1, 2014 5:14 p.m.

    Arguments to lower the corporate rate fall flat unless they address how other countries like Canada can have a lower corporate tax rate--raise income and sales taxes significantly. This is how those countries can manage a low corporate rate.

  • DWill Springville, UT
    Sept. 1, 2014 5:37 p.m.

    Krauthammer for president!