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It's a rigged game for sure. Boeing Paid No Federal Income Tax Last Year: Analysis
It's a rigged game for sure. Boeing Paid No Federal Income Tax Last Year: Analysis
It's a rigged game for sure. Boeing Paid No Federal Income Tax Last Year: Analysis
Boeing is not the bad guy; they didn't write the tax code. There is only one tax code applicable to all individuals and businesses.
It does seem amusing that "average Joe" deserves to take every advantage and properly use the tax code, to avoid tax fees, but businesses are the bad guys when they follow the same laws.
Take it up with Congress.
Logic is often elusive to some
Thom Paine
It's a rigged game for sure. Boeing Paid No Federal Income Tax Last Year: Analysis
Boeing disputes the report’s findings, saying its federal tax rate was actually 26.4 percent last year. Chaz Bickers, a Boeing spokesman, said the analysis ignores a crucial part of the company's tax expense. When the Boeing decides to embark on building a new aircraft, its taxes are deferred to encourage investment that could take decades to materialize a profit. But once they actually deliver the aircraft, those deferred taxes turn into current ones.
From the article:
Boeing is the employer of 170,000 workers in the US. Generally, their wages seem to be at least $20-$30 per hour, which won't get you into the Country Club but allows a modest middle class lifestyle.
Now, do these huge corporations have tax laws passed that are convenient for them? Sure. Our politicians will do anything for money. But I don't care if they pay taxes IF they are hiring American workers.
IMHO, I would like to see the outsourcers pay double the taxes and the domestic employers pay none. That might just bring some fairness back to the situation.
From the article:
Boeing is the employer of 170,000 workers in the US. Generally, their wages seem to be at least $20-$30 per hour, which won't get you into the Country Club but allows a modest middle class lifestyle.
Now, do these huge corporations have tax laws passed that are convenient for them? Sure. Our politicians will do anything for money. But I don't care if they pay taxes IF they are hiring American workers.
IMHO, I would like to see the outsourcers pay double the taxes and the domestic employers pay none. That might just bring some fairness back to the situation.
changing the tax rate but leaving all the loopholes open will have no effect.
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.
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.
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.
And how will increasing the tax rate have any effect on that?
The taxes do in fact become payable; much like the re-capture of depreciation.
Howdy Spec
Thom Paine
changing the tax rate but leaving all the loopholes open will have no effect.
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.
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.
:mrgreen: 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)
eace
Thom Paine
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.
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.
The issue of the OP is not the tax rate. It is the taxable amount. Our corporate rates are relatively high.
C Corps are more attractive, not less. How would you pass through current income to the shareholders?
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.
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.
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.
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.