Corporations do not pay taxes. Period. They collect taxes. Nothing more.
Please tell that to the IRS. Please. The corporation I control would love that to be true. The Irish and Apple already thought that as well so tell the EU too.
I think you're missing what he means. Who does the corporation you control get revenue from? Those are the ones paying the taxes. It's just basically an accounting trick that makes it seem the the corporation itself is paying them.
I can give you a personal example since I do have 2 corporations.
Neither of them price their products to include corporate taxes on the profits from those sales.
There's some years they've owed no taxes whatsoever, many more that they have. Pricing in the tax expected at the end of a year based on what profits those corporations factually realize and then adding to each of the products doesn't happen. If we could price our products higher and still maintain our sales goals we would just as EVERY corporation would. We all love profit. We can't compute "what the market will bear" and then add another fee on top for corporate taxes. That would end up counterproductive If we have already priced properly then adding the tax on top would logically result in fewer sales and in all likelihood LESS profit.
People that make up these stories that corporations don't pay taxes, consumers do, don't run corporations.
Sorry, but that's just not true. I am a partner in a corporation. I know how this works. Is it your contention that you are unaware that the current corporate tax rate stands at 21%? A corporation always knows what their tax component is and makes the necessary accommodations to their bottom line. Always. If it doesn't then that's just irresponsible. Having said that my example above stands. If the tax burden on your corporation increases from 21% to 35% would you take less in profit or would you pass it onto the consumer?
Are you saying you can just sell your service/product for any price - so price does not matter? Maybe this is true in a pure national environment where tax rates are theoretically the same for every competitor. But usually you would price yourself based on your cost structure and market prices (influenced by the competition). As soon as you have business in an international environment, national tax rates matter, just like national cost structures (labor costs) matter. If you as a tax paying corporation are competing with a non tax paying corporation, you will be at a significant disadvantage. Just pricing in your national tax rate means that you will be significantly more expensive than your competitor who does not have to price in the any tax.
Progressive politicians have two speeds: (A) Taxes and (B) More taxes.
Attempting to make it partisan or ideology-based is foolish on your part. This administration and congress has record deficit spending. It seems conservatives only care about fiscal responsibility when the other party is at the helm.
Corporations do not pay taxes. Period. They collect taxes. Nothing more.
Please tell that to the IRS. Please. The corporation I control would love that to be true. The Irish and Apple already thought that as well so tell the EU too.
I think you're missing what he means. Who does the corporation you control get revenue from? Those are the ones paying the taxes. It's just basically an accounting trick that makes it seem the the corporation itself is paying them.
I can give you a personal example since I do have 2 corporations.
Neither of them price their products to include corporate taxes on the profits from those sales.
There's some years they've owed no taxes whatsoever, many more that they have. Pricing in the tax expected at the end of a year based on what profits those corporations factually realize and then adding to each of the products doesn't happen. If we could price our products higher and still maintain our sales goals we would just as EVERY corporation would. We all love profit. We can't compute "what the market will bear" and then add another fee on top for corporate taxes. That would end up counterproductive If we have already priced properly then adding the tax on top would logically result in fewer sales and in all likelihood LESS profit.
People that make up these stories that corporations don't pay taxes, consumers do, don't run corporations.
Sorry, but that's just not true. I am a partner in a corporation. I know how this works. Is it your contention that you are unaware that the current corporate tax rate stands at 21%? A corporation always knows what their tax component is and makes the necessary accommodations to their bottom line. Always. If it doesn't then that's just irresponsible. Having said that my example above stands. If the tax burden on your corporation increases from 21% to 35% would you take less in profit or would you pass it onto the consumer?
Are you saying you can just sell your service/product for any price - so price does not matter? Maybe this is true in a pure national environment where tax rates are theoretically the same for every competitor. But usually you would price yourself based on your cost structure and market prices (influenced by the competition). As soon as you have business in an international environment, national tax rates matter, just like national cost structures (labor costs) matter. If you as a tax paying corporation are competing with a non tax paying corporation, you will be at a significant disadvantage. Just pricing in your national tax rate means that you will be significantly more expensive than your competitor who does not have to price in the any tax.
Here's what I'm saying. If you know what your tax rate is you make the necessary accommodations to stay competitive. I'm not arguing the point of who is non-tax paying (collecting) vs tax paying. That's irrelevant to the back and forth. All corporations, do what they can to alleviate their tax burden. The lower the tax burden (tax collection) the more competitive a corporation is as they now have more capital to work with. But you never answered my question. If the tax rate jumped from 21% to 35% would you increase the costs of your goods and/or services to make up for the additional burden of 14%?
Progressive politicians have two speeds: (A) Taxes and (B) More taxes.
Attempting to make it partisan or ideology-based is foolish on your part. This administration and congress has record deficit spending. It seems conservatives only care about fiscal responsibility when the other party is at the helm.
But they cut taxes, so as usual you’re unapologetically wrong.
Apple CEO Tim Cook has famously insisted that "We pay all of the taxes we owe,"...
Yep. And that's all I pay too. It's all anyone should pay. This political blathering is just whining about companies and people using the laws as they are currently written to their fullest advantage to keep the money they've earned. Nothing wrong with that. Don't like it? Change the laws. Jurisdictional arbitrage happening? Well, I guess that's life unless we want some kind of one world government (at least for taxation) and eliminate independent nations.
Which is why the laws need to be changed, or these massive corps should face massive fines, not slaps on the wrists and the CEOs get actual jail time. Enough its enough.
The likes of big pharma, sports franchises that build their stadiums, energy companies, telco’s and the like, have always made deals with respect to taxes.
But now, it’s not ok to do that? Does this only apply to tech companies? How about large companies on other sectors? Specifically, the financial sector?
Apple CEO Tim Cook has famously insisted that "We pay all of the taxes we owe,"...
Yep. And that's all I pay too. It's all anyone should pay. This political blathering is just whining about companies and people using the laws as they are currently written to their fullest advantage to keep the money they've earned. Nothing wrong with that. Don't like it? Change the laws. Jurisdictional arbitrage happening? Well, I guess that's life unless we want some kind of one world government (at least for taxation) and eliminate independent nations.
Tim Cook also said "...we obey the SPIRIT of the law" and not just the strict wording of the law.
Corporations recently received an absolutely gigantic tax cut from the U.S. government. If it's true that prices are based on taxes, then that gigantic cut should have resulted in a measurable plunge in consumer prices. Did it? No. It resulted in a measurable increase in profit taking and stock buybacks.
Corporations recently received an absolutely gigantic tax cut from the U.S. government. If it's true that prices are based on taxes, then that gigantic cut should have resulted in a measurable plunge in consumer prices. Did it? No. It resulted in a measurable increase in profit taking and stock buybacks.
Evil corporations give money to evil politicians who then write tax laws to favor the evil corporations who backed them. What do evil politicians get in return? Power and a well developed skill that convince suckers who elect them that those corporations will throw the taxpayers crumbs to eat but those evil birds get to the crumbs first every time.
Corporations recently received an absolutely gigantic tax cut from the U.S. government. If it's true that prices are based on taxes, then that gigantic cut should have resulted in a measurable plunge in consumer prices. Did it? No. It resulted in a measurable increase in profit taking and stock buybacks.
Businesses exist to make a profit. So. What?
Blows me away the vitriol thrown at corporations. These same people use products up to an including typing on this forum created by corporations. The shoes they wear? Corporation. The clothes they wear? Corporations. Cell phones? Corporations. Cell towers? Corporations. ISP? Corporations. Food they eat? Corporations. Movies they see? Corporations. Quick to flick the tongue against these type of organizations but secretly shop and do business with every last one of them without complaining a bit. Such dishonesty.
Corporations do not pay taxes. Period. They collect taxes. Nothing more.
Are you insane? That's only true when it comes to sales taxes. Corporations are supposed to pay taxes on profits period. It's the main way countries used to fund services. If the rich don't pay much and corporations don't pay much, countries go broke.
I agree with him. Corporations don’t pay their fair share. But they are not violating the law. If you want them to pay more, change the law. It’s that simple. Too often it becomes an argument about ‘evil corporations ripping off us little taxpayers’. It’s not. They are obeying the law as it is written. Want to have them pay more, change the law.
In some countries they are violating the law and they're certainly violating the spirit of the law almost everywhere. They find obscure loopholes in the law to avoid paying taxes. It's absolutely ridiculous that Amazon, for example, finds a way to not pay Federal income taxes in the U.S.
Corporations do not pay taxes. Period. They collect taxes. Nothing more.
Are you insane? That's only true when it comes to sales taxes. Corporations are supposed to pay taxes on profits period. It's the main way countries used to fund services. If the rich don't pay much and corporations don't pay much, countries go broke.
Sorry, but you're wrong. Corporations do not pay taxes.
Apple is in fact the largest corporate taxpayer in the US, so this German fellow is flatly lying (and so is Rwx9001). Before the most recent US tax cut for corporations, Apple was routinely paying about 25 to 26% of its revenue in taxes in the US (It pays different rates in taxes in other countries, based on the laws and loopholes there).
I’ve noticed that since the most recent tax cuts for the rich, Apple now reports paying about 14% in taxes each quarter. Maybe that’s why you didn’t get your refund this year ... but don’t blame Apple, blame Congress. The bottom line here is that the comment by the German fellow is broadly true of a lot of corporations, but is inaccurate and off target then applied to Apple. If only he’d said Amazon…
Comments
https://www.forbes.com/sites/timworstall/2011/09/22/corporations-do-not-pay-taxes-they-cant-theyre-not-people/#160f1bd16222
But now, it’s not ok to do that? Does this only apply to tech companies? How about large companies on other sectors? Specifically, the financial sector?
In some countries they are violating the law and they're certainly violating the spirit of the law almost everywhere. They find obscure loopholes in the law to avoid paying taxes. It's absolutely ridiculous that Amazon, for example, finds a way to not pay Federal income taxes in the U.S.
https://www.forbes.com/sites/timworstall/2011/09/22/corporations-do-not-pay-taxes-they-cant-theyre-not-people/#6a0fa2d86222
I’ve noticed that since the most recent tax cuts for the rich, Apple now reports paying about 14% in taxes each quarter. Maybe that’s why you didn’t get your refund this year ... but don’t blame Apple, blame Congress. The bottom line here is that the comment by the German fellow is broadly true of a lot of corporations, but is inaccurate and off target then applied to Apple. If only he’d said Amazon…