How Everyone Else Pays for Big Business's Tax Breaks

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This is blatanly rediculous, you literally take the food out of the mouths of people to insure that large corporations do not have to pay....What has happend to our country where is the fairplay? Something is very wrong when the middle and lower class have to pay for these large corporate loopholes. I am personally disgusted by the lobbying in this country and how they are literally taking part in writing our bills in their favor. Who is in charge here.
sincerely
disgusted

maryann of NY 10:15AM March 10, 2013

Two problems. First, its easy for a multinational to move profits around to the jurisdiction with the lowest rates. That money is very tough to get at, and trying to do so encourages relocating operations to lower tax countries.
Second, we tax shareholders, both on dividends and increased stock price. If we did only that (and at ordinary income rates, as Reagan championed), companies would have more incentive to invest earnings instead of using them for dividends and stock buybacks. Use the tax code to incentivize making capital productive. By the same token, penalize non-productive uses (cap charitable deductions, tax investment in land, speculation in things like art, yachts, etc)

Ronbo of FL 11:16PM December 14, 2012

Why tax corporations at all? All their profit goes to the shareholders, who are taxed as individuals, either through dividends or capital gains. Corporate tax on top of individual income tax just means that the profit gets double-taxed.
The real reason it's done this way, rather than taxing shareholders directly, is so that the tax code can shaft senior citizens who live off dividends and still convince most of them that they are paying very little tax. "I'm not the one paying all that tax, it's those evil mega-corporations, whose after-tax profits I receive." Yeah, right. Much like the shenanigans of the "employer portion" of FICA taxes.

Luke of CA 3:19PM December 14, 2012

Don't forget that many of these companies are unionized and that is why many politicians (both Rep. and Dem.) support these loopholes. As a Repubican, I see no reason why any busness should receive a tax break or subsidy. Keep the tax rates the same for all buisnesses, and keep them low. End all of the exceptions to these rates. The only exception that I could see, is that some buisnesses that are heavily cash oriented (and thus under-report their income) should be taxed at a higher rate. This would include businesses such as family restaurants.

BCL1 of FL 3:11PM December 14, 2012

This is such a simplistic view of how a complex economy functions that the end result is complete fiction. You forgot to mention the economic reality of tax incidence; which explains who really pays the taxes billed to business. This article has it completely backwards. Individuals benefit when corporations are taxes at a lower rate. Corporations always recoup the cost of taxes and there are several ways they do it. They can increase the cost of goods and serves or they can reduce the dividends paid to stockholders. Here's a tip for you. According to the IRS, 47% of of people reporting dividends were over 65 and not wealthy. Another way they will recoup the cost of taxes is by reducing their economic activity. e.g. reduce business expenses which results in direct or indirect job loss.

DEG of IL 5:52PM April 10, 2012

bing of AL
I agree, "If they are going to have the same "rights" as the rest of us, perhaps they should pay the same rate as the rest of us."
What, 40% + of us pay no federal income tax...The rich pay bigger portion of our taxes THAN US...

Bill Hedges of MO 6:27PM April 06, 2012

Just read the other day how USA has highest corporate tax rates on the globe, but after you consider all the loopholes, how much more do they really pay than their globabl counterparts? Just curious.
We need a new legal definition of what a corporation is. I know one thing, it's not a person. If they are going to have the same "rights" as the rest of us, perhaps they should pay the same rate as the rest of us.

bing of AL 5:04PM April 05, 2012

You forgot to mention that after the Corporations pay taxes on their profits, they are distributed to the shareholders, which are then taxed on that profit a 2nd time, though at a lower capital gains rate.
We should get rid of the lower capital gains rate, and get rid of all corporate taxes. Then the profits can be taxed only once at a fair rate when they are distributed to "real people".

Craig of CA 3:29PM April 05, 2012