PeakTrader.com

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PeakTrader said...

Rufus II says: "Actually, I WOULD be impressed if they (corporations) actually PAID taxes."

Corporations don't pay taxes, you do, one way or another:

"The average Joe should be in favor of lower corporate taxes," says Hodge, "because ultimately they are paying the corporate income tax.

Either as workers, getting lower wages and fewer jobs, or as consumers, paying higher prices, or as retirees, getting lower dividends and earnings on their investments."

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PeakTrader said...

I stated before:

We need pro-growth policies that will reduce the unemployment rate faster.

So, the economy can expand faster to raise tax revenues and lower unemployment benefits, which will help shrink budget deficits.

We need to cut hundreds of billions of dollars in government spending and use every dollar for tax cuts, and deregulate to stimulate growth.

Federal spending has increased by over $1 trillion and federal revenue has decreased, since 2007:

Federal spending 2007: $2.73 trillion.
Federal revenue 2007: $2.57 trillion.
Budget deficit 2007: $161 billion.

Federal spending 2011: $3.82 trillion.
Federal revenue 2011: $2.17 trillion
Budget deficit 2011: $1.65 trillion.

(2011 estimates)

U.S. profits are soaring from:

1. Offshoring low profitable goods for higher profits, importing those goods at lower prices, and freeing-up limited resources to raise domestic production of more profitable "core" goods and facilitate growth in emerging industries.

2. An overabundance of cheap domestic labor (e.g. $10 an hour), including immigrants from poor countries.

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Rufus II says "The rich...have to "pony up" (corporate income taxes)."

Congressional Budget Office Historical Effective Federal Tax Rates: 1979 to 2006
April 7, 2009

Corporate Income Taxes 2006-Paid by Quintiles:

Lowest Quintile 0.6%
Second Quintile 1.4%
Middle Quintile 3.2%
Fourth Quintile 6.6%
Highest Quintile 87.2%

Top 5% 73.5%

The overall effective federal tax rate (the ratio of federal taxes to household income) was 20.7% in 2006. Individual income taxes, the largest component, were 9.1% of household income. Payroll taxes were the next largest source, with an effective tax rate of 7.5%. Corporate income taxes and excise taxes were smaller, with effective tax rates of 3.4% and 0.7%.

CONGRESSIONAL BUDGET OFFICE
Federal Tax Revenues From 2003 to 2006

This analysis shows that the overall increase in revenues as a share of gross domestic product (GDP) since 2003 is disproportionately accounted for by increases in corporate income tax revenues.

Total federal revenues grew by about $625 billion, or 35 percent, between fiscal year 2003 and fiscal year 2006.

Receipts as a share of GDP rose from 16.5 percent in 2003 to 18.4 percent in 2006, an increase of 1.9 percentage points.

The bulk of the revenue increase was associated with corporate income taxes:

Revenues from corporate income taxes rose from 1.2 percent of GDP in 2003 (their lowest level since 1983) to 2.7 percent in 2006 (their highest level since 1978).

That increase of 1.5 percentage points of GDP in corporate income tax revenues accounts for the bulk of the overall 1.9 percentage point rise in revenues.

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http://www.blogger.com/comment.g?blogID=28997633&postID=2107855171186999726

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PeakTrader said...

Hydra says: "Kind of shoots a hole in the idea that welfare is addictive, or that money helping the poor is wasted."

(Based on the 44% who moved out of the lowest quintile and the 56% who stayed).

Except for the highest quintile, the lowest quintile has the least income mobility.

Are you implying people who receive $2,000 a month (or more) worth of welfare benefits prefer to work for $2,000 a month (after taxes)?

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http://www.blogger.com/comment.g?blogID=28997633&postID=4862975648880877262