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Obama seeks 28 percent corp. tax rate

Apdst, you do know that a lot of small business don't incorporate, right? Unincoroprated businesses would not be subject to corporate tax rates, and the profits they make, since they are completely privately owned, are just taxed as normal income. So no, this won't affect small businesses very much, because they usually don't incorporate. Most of the numbers you've posted in this thread are likely to be the dealings of an unincorporated small business, that will either be simply directly owned by a person or a partnership, or perhaps an LLC. Neither of those are corporations. Small businesses are almost totally unaffected by corporate taxes.
 
apdst said:
Again, would you force corporations to pay taxes on their gross income?
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Your getting your panties in a bunch because you fear what you do not understand. NO ONE is talking about changing the corporate income tax so that it is a sales tax (tax on revenue). Income, by definition, is revenue less expenses (deductions). Sorry, but to have an intelligent discussion, one has to have a basic understanding of the issues. If you don't, please step back.
 
The plan won't bring any relief for s-corps.
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S-corps generally pay a much lower effective tax rate the c-corps. The purpose is not to touch their rates.

So, at the end of the day, the only thing this plan will do is screw small businesses and maybe help the largest of corporations.
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That's not true at all and is really the complete opposite. Most small businesses that pay corporate income tax already pay around 28%. Most large multi-national corporations pay closer to 18% due to loopholes. This plan would set the corporate tax rate to 28% for all C-Corps and eliminate loopholes that allows large corporations to pay lower due to those loopholes.

So...it "hurts" corporations that buy loopholes via lobbyist. It helps small corporations that have to compete with those large corporations that have an advatage based on those loopholes.
 
ksu_aviator said:
Raising taxes on corporations? Well that ought to be the final dagger in the country once called America.

How can he be so stupid? Corps are fleeing over seas to escape our ridiculous tax rates and he wants to go higher? If anything we need to reduce or eliminate corporate taxes. That will help regenerate our economy. Raising taxes just hurts the consumer.
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Please show us a cite that supports your assertion that anyone is talking about raising corporate taxes...
 
upsideguy said:
Please show us a cite that supports your assertion that anyone is talking about raising corporate taxes...
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Hell, I'll even use a left wing nut job site: Corporate Tax Rates Effectively Already Below Obama's Proposed Level


Studies indicate that after tax breaks, the effective corporate tax rate is in fact closer to 25 percent, and one analysis found that nearly 300 major companies paid an average rate of just 18.5 percent between 2008 and 2010.

The Obama administration hopes closing the loopholes will offset revenue lost from lowering the tax rate.
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So, if the average corporation is paying between 18 and 25% and the new rate will be 28% with no breaks (loop holes as Obama calls them) then what is the net? It is a net increase in taxes paid. They even say so, claiming the new tax rates will raise revenue by $250 billion.
 
ksu_aviator said:
So, if the average corporation is paying between 18 and 25% and the new rate will be 28% with no breaks (loop holes as Obama calls them) then what is the net?
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NO breaks? Not even the right-wing articles say that.

ksu_aviator said:
They even say so, claiming the new tax rates will raise revenue by $250 billion.
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Who is this nebulous "They" you are referencing?
 
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Paschendale said:
Apdst, you do know that a lot of small business don't incorporate, right? Unincoroprated businesses would not be subject to corporate tax rates, and the profits they make, since they are completely privately owned, are just taxed as normal income. So no, this won't affect small businesses very much, because they usually don't incorporate. Most of the numbers you've posted in this thread are likely to be the dealings of an unincorporated small business, that will either be simply directly owned by a person or a partnership, or perhaps an LLC. Neither of those are corporations. Small businesses are almost totally unaffected by corporate taxes.
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Or, if they do incorporate, they incorporate as an LLC, which passes tax attributes directly on to the individual return(s). I have a small business that is an incorporated LLC. The reporting and resultant taxes are on 1040 and paid by me personally. As such, I and other LLC owners are unaffected by changes to the corporate tax rate.
 
AdamT said:
Again, only about 5% of small companies will be affected by this change IN ANY WAY. Of course small businesses aren't just C-Corps. or S-Corps. There are also partnerships, limited partnerships, LLCs, sole proprieterships, etc., etc.
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And...they file either as a chapter C, or a chapter S.

As far as how C-Corps. will be affected, there is no way of knowing until we see the specific proposal and can determine which deductions would be eliminated.
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If you remove deductions, it will mean a larger tax bill.
 
Paschendale said:
Apdst, you do know that a lot of small business don't incorporate, right? Unincoroprated businesses would not be subject to corporate tax rates, and the profits they make, since they are completely privately owned, are just taxed as normal income.
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Um, no, it don't work that way, either. Unincorporated businesses are doubled taxed with income taxes and self employment taxes.

Some small businesses are unincorporated, but no where near, "alot". It doesn't take long for a business to find out how much the government is raping them, because they're not incorporated.

So no, this won't affect small businesses very much, because they usually don't incorporate. Most of the numbers you've posted in this thread are likely to be the dealings of an unincorporated small business,
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They're still deductions of the cost of doing business. If you remove some of those deductions, you will raise a businesses tax bill, incorporated, or not.

that will either be simply directly owned by a person or a partnership, or perhaps an LLC. Neither of those are corporations.
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Do you have any clue what the "C" in "LLC" stands for?

Small businesses are almost totally unaffected by corporate taxes.
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Obama supporters just don't have a clue. I guess that's why they're Obama supporters.
 
upsideguy said:
Your getting your panties in a bunch because you fear what you do not understand. NO ONE is talking about changing the corporate income tax so that it is a sales tax (tax on revenue). Income, by definition, is revenue less expenses (deductions). Sorry, but to have an intelligent discussion, one has to have a basic understanding of the issues. If you don't, please step back.
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And you want to claim that I'm not having an intelligent discussion?

Sales tax is a tax on revenue? :lamo

That's rich!!!!
 
apdst said:
And...they file either as a chapter C, or a chapter S.
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NO
an LLC, general or limited partnership, nor a proprietorship will properly file as a C or subchapter S corporation. why, you ask? because they have elected one of those alternative organizational forms

If you remove deductions, it will mean a larger tax bill.
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how do you know the deductions lost will exceed the savings resulting from the reduced tax rate?

that's a rhetorical question. you don't know

i do realize that does not prevent you from spreading bull ****
 
iliveonramen said:
S-corps generally pay a much lower effective tax rate the c-corps. The purpose is not to touch their rates.


That's not true at all and is really the complete opposite. Most small businesses that pay corporate income tax already pay around 28%. Most large multi-national corporations pay closer to 18% due to loopholes. This plan would set the corporate tax rate to 28% for all C-Corps and eliminate loopholes that allows large corporations to pay lower due to those loopholes.

So...it "hurts" corporations that buy loopholes via lobbyist. It helps small corporations that have to compete with those large corporations that have an advatage based on those loopholes.
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OMG, where do you people dig this crap up? All corporations have the same tax deductions. It's called, "the equal protection clause"
 
justabubba said:
NO
an LLC, general or limited partnership, nor a proprietorship will properly file as a C or subchapter S corporation. why, you ask? because they have elected one of those alternative organizational forms
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Wanna re-right that so that it makes a lick of sense? Thanks!


how do you know the deductions lost will exceed the savings resulting from the reduced tax rate?

that's a rhetorical question. you don't know
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The only way that that would be remotely possible, is if a company is already paying taxes at a rate above 28%. A company that is paying taxes below 28% is going to get hosed.

It blows me away that you all think this is some awesome, pro-business tax plan.

I can't wait to see what's hidden in it, like the 1099 law that was snuck into Obamacare.
 
justabubba said:
he could not be more wrong if he tried
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its amazing to see someone say such stupid things. just blows the mind.

how in God's name, could ALL corporations have the same deductions?????????

its like saying ALL people have the same deductions.

where does this **** come from?
 
Thunder said:
its amazing to see someone say such stupid things. just blows the mind.

how in God's name, could ALL corporations have the same deductions?????????
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Explain to us how all corporations don't. Thaaaaaaaaaaaaaanks!
 
apdst said:
How so? Prove it and please, use sources. Thanks in advance.
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how the **** can every corporation have the same deductions?

wtf are you talking about?


and you say Obama supporters have no clue. Unbelievable.
 
apdst said:
Explain to us how all corporations don't. Thaaaaaaaaaaaaaanks!
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easy example
one company has depreciable assets
the other one does not
one gets to write off depreciation as a deduction
the other one does not
duh!
 
justabubba said:
easy example
one company has depreciable assets
the other one does not
one gets to write off depreciation as a deduction
the other one does not
duh!
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You know that doesn't prove me wrong. Right? :rofl

Just because that one company doesn't have anything to depreciate, doesn't mean they don't qualify for the deduction.
 
Thunder said:
how the **** can every corporation have the same deductions?

wtf are you talking about?


and you say Obama supporters have no clue. Unbelievable.
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When did I say, "have"? I said, "qualify".
 
apdst said:
You know that doesn't prove me wrong. Right? :rofl

Just because that one company doesn't have anything to depreciate, doesn't mean they don't qualify for the deduction.
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it proves the point that all corporations do not have the same deductions
duh!
 
justabubba said:
it proves the point that all corporations do not have the same deductions
duh!
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I'm in the trucking business and I qualify for all the same deductions that JB Hunt does. They're deductions run into the millions and mone run into the tens of thousands; therein lies the only difference.

Obviously, a florist isn't going to deduct the purchase of diesel fuel, unless the company owns a diesel fueled vehicle. But, they don't disqualify for a fuel deduction, just because they're not in the transportation business.

Continue to explain how I'm wrong, because you have a long, long way to go.
 
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