Page 4 of 13 FirstFirst ... 23456 ... LastLast
Results 31 to 40 of 122

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

  1. #31
    Sage
    Lord of Planar's Avatar
    Join Date
    Dec 2012
    Location
    Portlandia
    Last Seen
    Today @ 06:10 AM
    Gender
    Lean
    Libertarian - Right
    Posts
    23,239

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

    Why is the Huff~n~puff post complaining about "deferred" taxes?

  2. #32
    Pragmatic Idealist
    upsideguy's Avatar
    Join Date
    Nov 2009
    Location
    Rocky Mtn. High
    Last Seen
    Today @ 02:55 AM
    Gender
    Lean
    Progressive
    Posts
    10,081

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

    Quote Originally Posted by newpublius View Post
    I have an MBA in finance, I know what I'm talking about.



    But this thread is about Boeing.



    Well, I'm not sure what Boeing took, but whatever it was it warranted a tax deferal.



    That's not a loophole though, that's tax evasion, its illegal actually. There may be some wiggle room on the margin of course, but by and large costs and revenues should be allocated where geographically appropriate and when corporations deal with affiliated entities in other tax jurisdictions, pricing should be arm's length pricing. And if they don't, that's illegal.



    I understand what it is and how it works, but that's not what this thread is about.




    The rules don't need tightening, they exist. The enforcement is difficult. Drugs are illegal too, heroin/cocaine/marijuana are all grown abroad and then imported into the United States. Enforcement? Have fun at the UN. And I mean that, because unless foreign countries are going to let the IRS/FBI in to perform investigations on corporate subsidiaries, or for that matter, parent corporation with US subsidiaries, good luck.....There's also the flip side to it too which is that publicly traded companies need to report earnings and those stock prices are dependent on those earnings.



    You're worried about the larger corporations of course, but who cares really? I mean even if we doubled the physical take on the C Corporations, we're talking 1-2% of GDP. The problem is the disincentive created to even becoming a C Corp. I'll never do it and there are many small/medium sized businesses who just will never become a C Corp, they will never raise capital to grow their businesses because to do so puts them in the double taxation regime. I would never become one, I'm never going to take a 35% haircut off the bat just in case I might grow by going public and raising capital. No thanks, I'm well enough off now in S Corp/LLC land to not bother.



    I'm a conservative, I don't care about maximizing tax receipts. I want the government to command as few of our nation's resources as humanly possible. The government is a minimization problem. Nevertheless, in the pass thru structures, I pay tax on those of course, just on my individual return. Just get rid of the C Corp tax, reallocate the army of tax accountants to other various service industries, and let the chips fall as they may. You'll see an exposion in entrepreneurship emanating from the current crop of small/mid sized business looking at the palisades imposed by the C Corp double taxation regime and saying 'No thanks'

    Its no small amounts, you can google it too, we're talking trillions of dollars here though.



    Profits vary, believe it or not corporate income is at a nominal record, but really historically Fortune 500 isn't that profitable actually, their average margin is like 5-6% and in these years of higher profitability its 7 cents off a dollar in profit.



    Of course they are, labor is what? 20% of gross sales in most businesses. Do you realize that the payroll taxes paid by Walmart exceed the profit attributable to the shareholders? I mean, when you spend a dollar at Walmart or on a corporate product in the Fortune 500, more of that dollar goes to the various governments than to shareholders, and that's a fact actually.



    Of course, Romney was discussing income taxes of course, but while the brightline off the cuff test doesn't work well, fact is there are relative makers and relative takers. We're all makers and we're all takers and that includes Romney's use of the roads. In politics of course you need a short snippet that the 50% of the population with below average intelligence can understand and discussing relative burdens, a political discussion the US really should be having as it ages demographically is a lost cause.
    A very intelligent response.... I do not agree with each point, but its so rare to actually get someone that understands what they are talking about on DP that I certainly wanted to salute it. Thank you. I will respond to this when I can.

  3. #33
    Sage
    Lutherf's Avatar
    Join Date
    Sep 2012
    Location
    Tucson, AZ
    Last Seen
    Today @ 01:35 AM
    Gender
    Lean
    Conservative
    Posts
    24,655

    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 or other massive tax saving loopholes 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.
    That's not true at all.

    Let's say that you bought a rental property in 1980 for $100k and now it's worth $1.5M. You can sell that property and purchase another rental property while deferring the $1.4M gain until you sell the replacement property. Like Thomas said, everybody uses the same tax code.

  4. #34
    Sage
    Lord of Planar's Avatar
    Join Date
    Dec 2012
    Location
    Portlandia
    Last Seen
    Today @ 06:10 AM
    Gender
    Lean
    Libertarian - Right
    Posts
    23,239

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

    Quote Originally Posted by upsideguy View Post
    A very intelligent response.... I do not agree with each point, but its so rare to actually get someone that understands what they are talking about on DP that I certainly wanted to salute it. Thank you. I will respond to this when I can.
    The first thing I did was search for Boeing income sheet. A large tax liability is recognized, but differed. People should be careful believing the way journalists from places like the Huff~n~puff post frame things. They are almost always twisting the truth.

    The deferrals will be reconciled. It may take time, but Boeing will likely pay at least most of the amount.

  5. #35
    Sage
    apdst's Avatar
    Join Date
    Jun 2009
    Location
    Bagdad, La.
    Last Seen
    Today @ 06:25 AM
    Gender
    Lean
    Very Conservative
    Posts
    76,360

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

    Quote Originally Posted by American View Post
    I guess they should bend over and take it in the ass right?
    They should be forced out of business and the airline industry should be run by the government.
    Quote Originally Posted by Top Cat View Post
    At least Bill saved his transgressions for grown women. Not suggesting what he did was OK. But he didn't chase 14 year olds.

  6. #36
    Sage
    apdst's Avatar
    Join Date
    Jun 2009
    Location
    Bagdad, La.
    Last Seen
    Today @ 06:25 AM
    Gender
    Lean
    Very Conservative
    Posts
    76,360

    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 or other massive tax saving loopholes 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.
    Blame the government for writing the tax code. Do you take credits and deductions when you do your taxes?
    Quote Originally Posted by Top Cat View Post
    At least Bill saved his transgressions for grown women. Not suggesting what he did was OK. But he didn't chase 14 year olds.

  7. #37
    Sage
    apdst's Avatar
    Join Date
    Jun 2009
    Location
    Bagdad, La.
    Last Seen
    Today @ 06:25 AM
    Gender
    Lean
    Very Conservative
    Posts
    76,360

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

    Quote Originally Posted by specklebang View Post
    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.
    I'm stunned, too. Sounds to me like your CPA was telling you that so you didn't take it in the shorts.
    Quote Originally Posted by Top Cat View Post
    At least Bill saved his transgressions for grown women. Not suggesting what he did was OK. But he didn't chase 14 year olds.

  8. #38
    Discount Philosopher
    specklebang's Avatar
    Join Date
    Jan 2012
    Location
    Las Vegas
    Last Seen
    06-05-14 @ 08:26 PM
    Lean
    Other
    Posts
    11,524

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

    Quote Originally Posted by newpublius View Post
    OK, the end result of the deferral in the case of Boeing is that Boeing engaged in an action and the tax consequence simply reduced the current cost of engaging that behavior. I'm not on Boeing's Board of Directors or a C-level executive so I can't be certain if the tax consequence was the difference that made the difference or not, honestly you'd have to ask them, but no matter how you slice it the government's impact on that decision made the decision chosen cheaper relative to whatever opportunity cost was presented to Boeing. General rule is that you really shouldn't be distorting prices like that, it results in less than optimal allocations.
    Corporate taxes make up 10% of Federal Tax Revenue. There is a good argument that they cause far more problems than solutions. I'd like to see some penalty for outsourcing jobs that could realistically be done by Americans, customer service comes to mind as an employer of many semi-skilled workers. It would probably stimulate something, they could pay their workers more and the Feds can take it out on the workers.

    So yes, give it up and save all that paperwork.

  9. #39
    Banned
    Join Date
    Nov 2012
    Location
    Denio Junction
    Last Seen
    11-13-14 @ 12:09 AM
    Lean
    Other
    Posts
    7,039
    Blog Entries
    4

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

    Using taxes to protect workers or oppose out sourcing is a tax on customers, and can ultimately lead to competing businesses with lower price points for profits by another country. It's a noble cause but will not work no matter how hard you try.

    I'd rather eliminate corp taxes and impose a national sales tax. The more companies produce and sell the more taxes we get.


    Quote Originally Posted by specklebang View Post
    Corporate taxes make up 10% of Federal Tax Revenue. There is a good argument that they cause far more problems than solutions. I'd like to see some penalty for outsourcing jobs that could realistically be done by Americans, customer service comes to mind as an employer of many semi-skilled workers. It would probably stimulate something, they could pay their workers more and the Feds can take it out on the workers.

    So yes, give it up and save all that paperwork.

  10. #40
    Discount Philosopher
    specklebang's Avatar
    Join Date
    Jan 2012
    Location
    Las Vegas
    Last Seen
    06-05-14 @ 08:26 PM
    Lean
    Other
    Posts
    11,524

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

    Quote Originally Posted by CalGun View Post
    Using taxes to protect workers or oppose out sourcing is a tax on customers, and can ultimately lead to competing businesses with lower price points for profits by another country. It's a noble cause but will not work no matter how hard you try.

    I'd rather eliminate corp taxes and impose a national sales tax. The more companies produce and sell the more taxes we get.
    The more money people have to spend the more taxes we get. So we'll eliminate the corporate tax in exchange for everyone getting a 10% raise. Then they can go on a tear buying all that stuff they produced.

    Meet me halfway and we can get this done by Summer.
    The-Numbers-Jan-2012-Fig1_1.gif

Page 4 of 13 FirstFirst ... 23456 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •