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Thread: Boeing Paid No Federal Income Tax Last Year: Analysis

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    re: Boeing Paid No Federal Income Tax Last Year: Analysis

    Quote Originally Posted by Carjosse View Post
    Well building aircraft is hard to outsource as it it is not unskilled labour, it is usually high skill and some kind post-secondary education is required, it is how the modern economy works. Bombardier does the same thing here but they do pay taxes.
    Bombardier does get a lot of subsidies though
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    re: Boeing Paid No Federal Income Tax Last Year: Analysis

    Quote Originally Posted by Carjosse View Post
    The last time I checked most small businesses and your average joe don't have the ability to off-shore money and take advantage of things only a large team of corporate tax accountants could do. What they they are doing could very well be illegal.
    Smart ass question... Have you checked U.S tax info in the last 70 years?

    All persons can establish off shore accounts. Some regs do not take effect until certain income and investment levels are achieved.
    Many are grossly ignorant of tax regs. ergo they do not obey the tax code/law to their own benefit.

    Obey traffic laws equal zero tickets; Obey all tax laws equal maybe zero taxes.

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    re: Boeing Paid No Federal Income Tax Last Year: Analysis

    Quote Originally Posted by Quag View Post
    And how will increasing the tax rate have any effect on that?
    I say eliminate it of course. Increasing the tax rate actually makes any offers to defer taxation potentially more lucrative. The best example is a 401(k), while you're not a corporation, the same principle applies, you contribute to a 401(k) and as a result you can defer payment of income taxes on those funds. To the extent that you earn income in the higher marginal brackets, the more attractive the scheme potentially becomes since you'll likely be withdrawing them when you're income is lower.

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    re: Boeing Paid No Federal Income Tax Last Year: Analysis

    Quote Originally Posted by Thom Paine View Post
    The taxes do in fact become payable; much like the re-capture of depreciation.

    Howdy Spec

    Thom Paine
    They can probably defer taxes for decades. Yes, very much like recapture of depreciation. Interestingly, depreciation is not an option. I tried to have my CPA not depreciate my rentals because I have some large tax credits and the depreciation doesn't benefit me. You MUST take the depreciation. I was trying to keep the capitalization up so my heirs would have the higher amount as the original value. My CPA said that the houses capitalization will be based on market value at the time of my death, not on the actual original investment. But I was still stunned that it was MANDATORY for these deductions to be taken.

    So Boeing is actually following the law. Go figure.

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    re: Boeing Paid No Federal Income Tax Last Year: Analysis

    Quote Originally Posted by Quag View Post
    changing the tax rate but leaving all the loopholes open will have no effect.
    The issue of the OP is not the tax rate. It is the taxable amount. Our corporate rates are relatively high.

    Quote Originally Posted by newpublius View Post
    It should just be eliminated altogether though. There already exist two pass thru entities in the US, the S Corp and the LLC, why do we make C Corps so unattractive. In this particular circumstance, Boeing simply gets to defer taxes so that their current liability is less than 0. The loophole here is actually an activity that the US Government wants Boeing to engage in. This isn't quite a loophole, what's happening here is that the government is saying, "Hey, Boeing, if you want you can pay what the law requires and that'll be the end of it, OR, if you do what we want you to do, we'll let you defer taxes"

    And sure enough Boeing took them up on the offer because now that investment became more attractive to undertake.
    C Corps are more attractive, not less. How would you pass through current income to the shareholders?

    Quote Originally Posted by Quag View Post
    And how will increasing the tax rate have any effect on that?
    It won't.

    Quote Originally Posted by newpublius View Post
    I say eliminate it of course. Increasing the tax rate actually makes any offers to defer taxation potentially more lucrative. The best example is a 401(k), while you're not a corporation, the same principle applies, you contribute to a 401(k) and as a result you can defer payment of income taxes on those funds. To the extent that you earn income in the higher marginal brackets, the more attractive the scheme potentially becomes since you'll likely be withdrawing them when you're income is lower.
    Comparing Boeing's tax liability to your 401K is invalid unless you are making more than I can imagine.

    As for "Increasing the tax rate actually makes any offers to defer taxation potentially more lucrative" isn't that the objective? It is an incentive to invest in R&D.

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    re: Boeing Paid No Federal Income Tax Last Year: Analysis

    Thread title is: But but..the corporate tax rate is too high!
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    re: Boeing Paid No Federal Income Tax Last Year: Analysis

    Quote Originally Posted by Thom Paine View Post
    Smart ass question... Have you checked U.S tax info in the last 70 years?

    All persons can establish off shore accounts. Some regs do not take effect until certain income and investment levels are achieved.
    Many are grossly ignorant of tax regs. ergo they do not obey the tax code/law to their own benefit.

    Obey traffic laws equal zero tickets; Obey all tax laws equal maybe zero taxes.

    Easy Peasy ( h/t to Ste Maggie)



    Thom Paine
    If you obey all the tax laws you would party an average amount of tax money, if you wanted to pay zero dollars you would need a fairly large army of accountants. If an individual by themselves tried to offshore cash it might actually cost more.

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    re: Boeing Paid No Federal Income Tax Last Year: Analysis

    Quote Originally Posted by Quag View Post
    Bombardier does get a lot of subsidies though
    I'm sure they do but they also pay taxes, and I was comparing the two companies, they are both located where they are for the primary reason of the high skill requirements of the jobs.

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    re: Boeing Paid No Federal Income Tax Last Year: Analysis

    Quote Originally Posted by Carjosse View Post
    I'm sure they do but they also pay taxes, and I was comparing the two companies, they are both located where they are for the primary reason of the high skill requirements of the jobs.
    Pretty sure Bombardier is located in Quebec mainly because thats where Mr. Bombardier started with his snowmobiles.
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    re: Boeing Paid No Federal Income Tax Last Year: Analysis

    Quote Originally Posted by Carjosse View Post
    Well building aircraft is hard to outsource as it it is not unskilled labour, it is usually high skill and some kind post-secondary education is required, it is how the modern economy works. Bombardier does the same thing here but they do pay taxes.
    Theoretically, they (Bombardier and Boeing) follow the same tax codes.

    By investment, we are already outsourcing aircraft construction to Europe. But you are correct in that these are the types of companies that manufacture domestically and that they present opportunity to those who have invested in education. Unskilled labor is becoming increasingly obsolete.

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