‘Damn it … I’m sick and tired of ordinary people being fleeced’: Biden defends corporate tax hike

I agree. There is nothing good for the economy in raising taxes. And there is not much bad about eliminating tax loopholes. If they elimiated loopholes, they could actually lower the rate and be heroes.

 

Unfortunately many folks don't understand this concept. Thanks for sharing.

 

Hey, I like that you are more objective than most people. You can see things from both sides. When the economy is booming, you actually want to cut deficits and raise interest rates so the government will have more room to help the economy when a recession happens. It also helps the boom be less of a bubble. But of course politicians don't want to reduce economic growth, that isn't good for re-election. Its better to pile on the debt, and let the next guy handle that.

 

My solution is a zero taxes for small businesses, small taxes for moderate taxes, and most of the taxes on large corporations, especially multinational, but no so much as to stifle business. We need to make sure that big corporations are paying more than small businesses in the effective tax rate. If they aren't, time to tweak the tax code. This helps reduce monopolization and keeps our market diverse and competitive. When you are giving the mega-corporation lower taxes than the small businesses its killing, you are just asking for a monopoly.

 

Why should businesses be treated differently, why should government be using the tax system to try and manage and direct private business and industry and citizens engaged in their private lawful businesses. Since when are elected officials and government paid bureaucrats (I can never remember how to spell that word ) better managers of our private economy and business?

If we are going to tax business then tax all business the same making sure we keep it low only what is necessary and not as some means to control the economy.

 

The free market is great and has accomplished some amazing things. But it isn't perfect and as plenty of flaws. The government is one way of helping regulating our markets to smooth out those flaws. One way to do this is to impose laws that force private companies to act a certain way. But a gentler approach is to encourage behavior through taxes. Trump did this exact thing when he started taxing products from China to help American businesses.

 

Lower corporate taxes offers more job opportunity for individuals, lowers the prices individuals pay for stuff, and makes no individual richer. Biden has all of this ass backwards.

Incidentally, the federal government is authorized to provide infrastructure for only postal services and the military, but that is constitutional water long passed over the dam.

 

More importantly it needs to use the good times to pay down debt and reduce the money supply. It never does.

 

What I've suggested for years is simple fairness in the taxation of personal income, Distaff. I've written this so many times that I don't even have to tell my fingers which keyboard keys to press anymore....

We need to completely re-write the U. S. Tax Code so that all loopholes, shelters, exclusions, exceptions, deductions, and 'carried-interest' are entirely removed forever! We can have varying "brackets" for different income levels, although in many ways a flat-tax would be more fair, and less likely to be plagued with continuing problems involving fraud and lies in income-declaration.

But the truth is that neither "Fat Cat" Republicans nor "Limousine Liberal" Democrats ever actually change these rotten, corrupted, execrable tax laws! When you get right down to it, they all like things exactly the way they are, and 'laugh all the way to the bank together'.... They TALK about making things 'more fair', but they never really do much of ANYTHING of any practical benefit for anyone but millionaires and billionaires.

Most of the endless problems we have had with the economy for decades could be solved by adopting a new U. S. Tax Code and taxing everyone fairly. Until we do, our problems will only grow worse and worse every year....

 

Fairness is a very subjective term anyway. Is fair paying the same amount, paying the same percent, paying the same percent of a certain tax, or the tax having the same financial impact relative to disposable income? Do we take into account how much you are getting out of the government programs? Do we take into account how much the income of your income group has grown recently?

Instead we should set tax rates to those rates that benefit the American people the most.

 

The government doesn't need to pay down the debt. All it needs to do is allow inflation and economic growth to shrink the debt relative to GDP.

 

What in life is perfect and flawless? Is government? Government should stick to it's constitutionally mandate role. Maintain weights and standards, regulate interstate coomerece (make states don't pass laws interfering with that) and a system of courts in which to enforce contracts and settle grievances. The LAST thing the founding fathers envisioned was the government using taxation to control the behavior of the citizens. The system of taxes should he designed to raise the most revenue with the LEAST impact on the citizens and the markets.

 

Probably the only method of real tax reform that would stand a chance of surviving attacks by lobbyists, tax lawyers, and the 'big-rich' would be to tax personal income on a percentage alone -- period!

Anything else would get mangled beyond recognition or usefulness by the 'overlord' class and their stooges in both the House and Senate.

 

So you approve of inflation. No point in discussing it any further.

 

that would not be enough for the handouts

corporations can pay for welfare

 

Well, if Joe Schmoe and Reginald Richguy each have to pay, say 18% in personal income tax on what they MAKE, with no loopholes, tax shelters, exclusions, deductions, exemptions, or other 'off-sets', wouldn't that at least be fair?

But the really rich have ARMIES of tax lawyers and tax accountants on their payrolls to make certain that they never pay a 'fair share'....

 

I hear you saying that we don't need to trouble ourselves over the debt that inflation will take of it. What if don't get enough inflation? Our current inflation ramp up, fizzling to disinflationary forces, wouldn't surprise me. And our debt's on pretty good run-up due largely to the pandemic.

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Further, it's not the debt so much as the Cost To Service The Debt, what do you think happens to debt service costs during a high inflation scenario?

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I'm not talking about massive inflation. Just inflation between 2-3%. Maybe if we really need it 3-4%, but no more than that.

 

Inflation is a good thing. It gets people buying and every job out there is because people are buying.
https://www.thebalance.com/why-is-inflation-good-4065995

 

I'm not sure you'll even get that past the short term. But, once this deflationary cycle passes, which should be during this decade and an inflationary cycle takes hold, keeping it under control can be very difficult, but, probably not impossible.

Looking at this,

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Just running my eyes across it I can fairly easily pick out a long term 5% trend with a more recent 2.5% trend. We've also increased the amount of debt to be serviced during the period since we last saw 5% 10 year notes, by 5 times.

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But, when I look at Gross Product, it's only doubled over that same period. That seems like it has to be a problem, that we won't feel the full weight of until borrowing rates return to their long term averages, which they surely will.

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Generally borrowing costs rise with inflation, and when they do, debt service is going to be a much bigger chunk of discretionary spending. We'll likely figure out a way to handle it, but, it's real money being borrowed, and there will be real additional costs to servicing the debt, so it strikes me as prudent to only raise what is needed in additional debt and spend it wisely.

 

Loopholes are deliberate cut outs for the politically favored. They represent far too much opportunity for graft to eliminate.

 

Corporations are major users of our infrastructure of all kinds - roads, bridges, electricity, water, etc.

When they pay ZERO (like so many are doing) it means that private citizens get taxed to cover that.

 

If and when they pay zero it is because of all the subsidies and breaks they get. Who do you think gives them those breaks? Themselves? Of course not. Politicians do. So blame your politicians. Corporations take advantage of all the subsidies and tax breaks that they can. Just like you would if you were them. I would too. And everyone else would also. Unless they're idiots of course.

 

Nonsense.

 

No they don't. Government doesn't rely on taxes. It relies on debt and money printing with some taxes thrown in. The politicians are corrupt and love to do favors for donors. Hence the tax laws as they are. If you are politically active work toward a single term limit for all elected officials. That will cut it down somewhat.