Biden’s Plan Would Raise Minimum Corporate Tax to 28%, an Increase of 40%
Weird. No mention of changing the all of the TAX CODE regarding corporations, which means this is just the usual hot air.
I wish I could giggle and snort over the stupid “fact sheet” sent out by the White House today regarding taxes on those evil corporations and rich people.
Because obviously raising the minimum corporate tax rate would change everything:
Raising the corporate tax rate to 28% and the corporate minimum tax to 21%. President Biden believes large corporations should pay their fair share, and is committed to reversing the massive tax giveaway to big corporations that Republicans enacted in 2017. President Biden would raise the corporate tax rate to 28%. He would also ensure that billion-dollar corporations pay at least 21% of their income in taxes, building on the Inflation Reduction Act’s (IRA) corporate minimum tax.
Stock buyback tax:
Quadrupling the stock buyback tax. In response to the surge in corporate stock buybacks after the Trump tax cuts, President Biden signed into law a surcharge on stock buybacks that encourages businesses to invest in their growth and productivity as opposed to funneling tax-preferred profits to wealthy and foreign shareholders. President Biden would quadruple the stock buyback tax from one percent to four percent to address the continued tax advantage for buybacks and encourage corporations to invest in productivity and the broader economy rather than windfalls for investors.
Biden also added the “tax breaks” for executives:
Denying corporate tax breaks for multi-million-dollar executive compensation. Executive pay has skyrocketed in recent decades, with CEO pay averaging more than 300 times that of a typical worker in 2022. The corporate tax cuts in the 2017 Republican tax law only made this problem worse, giving executives huge raises while doing nothing for low- and middle-income workers. When corporations give huge pay packages to their executives, President Biden believes they don’t deserve a tax break. That’s why he’s proposing to deny corporations a tax deduction when they pay over $1 million to any employee.
These last two bullet points are interesting, mainly because of how Biden points out the Trump tax cuts.
Biden doesn’t reveal that corporations have avoided income taxes for a long time.
The changes in stock options might help a little bit, but I doubt it by much. Those who run is dumb if it does not always reinvest
Not that I care. Taxation is theft.
Anyway, this is a CBS report from 2017 revealing how profitable companies haven’t paid taxes over the past eight years from then:
Other industry-specific tax breaks include write-offs for business activities such as building NASCAR race tracks or research, as well as “accelerated deprecation,” which effectively lets companies defer taxes on equipment and other assets.
Companies can also receive a deduction for domestic manufacturing, a tax break created under the American Jobs Creation Act of 2004. The goal was to help revitalize American manufacturing, but companies have pushed the meaning of “manufacturing” to mean, well, almost anything. For instance, companies that are using the tax break include Starbucks (SBUX), Hollywood film producers and online reservation system OpenTable, ITEP said.
Everything they have done (with a few exceptions) is legal. 100% legal. You want to change anything you have to change the tax code.
Change the entire tax code. Get rid of all the write-ups and credits. Also the assets.
It’s why real estate is so lucrative.
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to the full extent allowed by law.
Comments
First decrease federal spending by 40%, then I would be happy to support this.
Otherwise, hell no.
Axing Deep State should should achieve more than 40% reduction.
I’m not going to hold my breath. I’ve said for multiple decades we needed to quit spending. As yet no one has listened.
Neighbors used to bwitch at me because I’d tell them not to support more school taxes.
First decrease federal spending by 40%. Period. Full Stop. Do not pass go, do not raise taxes.
Heck, get rid of the unconstitutional departments other federal government functions and you’ll get rid more than 40%.
The stunning thing to me is how many people don’t, at first blush, understand that corporations/businesses don’t pay taxes, their consumers actually pay it in the form of higher costs for the products/services offered. When you ask that same person through the example of them being the business owner they suddenly understand that the owner is gonna try and make X amount $ after expenses and taxes and will adjust their costs and product pricing to make that work. If they can’t make it work they shut down b/c X amount of $ is the minimum that person is willing to receive to do all the pain in the ass things required to run a business.
Not just at first blush. They will not understand it if you tell them and walk them through it. Last time I put this out to a more left audience I got accused of being a Thatcherite. (Which didn’t hurt my feelings at all) They somehow believe that everybody with more money than themselves are greedy and yet they seem to think these same “greedy” individuals will happily lose money if you tax them.
All businesses pass all expenses, including taxes on to their customers in order to achieve a minimum ROA.
Well, first they don’t see wages as “expenses”. Nor do they see profit as mandatory (after all, if wages are expenses, then profit must just be money in a vault somewhere that they swim in like Scrooge McDuck).
And, since they deal in static thinking, the taxes paid must just come out of the profit or executive wages. After all, their paycheck doesn’t stay the same when their taxes go up – their wages are static and taking more out (for benefits or taxes) just leaves them with a smaller take home. So, they wonder why it doesn’t work that way for the boss.
Answer: Because he’s the boss.
You can’t tax the rich, only the poor. The thing about rich people is that they already spend everything they want to on their own consumption. What’s left over, extra money, goes to investment. If you tax the right more, the investment falls but not the consumption, because (by design) only the extra money is given up.
That extra money used to buy heavy equipment for ditch diggers, which increased their wages. Now it doesn’t. The ditch diggers are back earning a living with a shovel.
Yeah, but those ditch diggers are now “newcomers” who work for cheap, and Americans can get on with college-graduate-level jobs that pay SO much more.
Right? I mean, I don’t have to justify any of that with math or anything, right? Or logic?
Phew!
I’m so glad that shoplifters and other thieves are no longer punished for their crimes!
They now receive the same treatment the government does when it commits theft through taxation.
Equity!!!
I don’t even know what to think about this article. Clickbait? Misdirection? BDS? Most charitably, perhaps it can be summed up as “Biden published a stupid, meaningless press release.”
“President Biden believes they don’t deserve a tax break.”
Biden is entitled to his beliefs, as am I. Now, the Executive Branch doesn’t get to say what tax rates or tax laws are, so nobody cares what he “believes.” Is this another case where Biden is signing royal edicts authorizing/forbidding stuff that he has no constitutional power to do? Gee, no, he’s not even doing that this time. Just expressing an opinion. Not even a surprising one… for him.
“President Biden signed into law a surcharge on stock buybacks”
Ah, here we go. A law, so it originated from our elected representatives. Since it’s a tax law, presumably one that originated in the house “we” nominally “control.” Whose fault is that? You can no more blame Biden for signing this bill than you can blame your dog for snapping at a frankfurter you are waving in front of his nose.
“Virtue-Signaling Tax Bloviation from Biden” — is that a fairer headline?
FACT SHEET: President Biden Announces Plan to Lower Housing Costs for Working Families
https://www.whitehouse.gov/briefing-room/statements-releases/2024/03/07/fact-sheet-president-biden-announces-plan-to-lower-housing-costs-for-working-families/
The Federal govt giving away $10K in this program is asinine. The govt gets $ via the funds it confiscated through taxation. So as you can see it is at best taking $ from a taxpayers right pocket to then put right back into his left pocket or at worst another in a long line of redistribution schemes concocted by wild eyed leftists.
A better way for the Feds to actually reduce costs in the housing market would be to refuse any Federal funds for all State, County and Local gov’t who have market distorting policies in place such as rent control or puts up obstacles to the eviction of tenants in less than 30 days. Embrace the free market and problems will get solved quickly and efficiently with govt bureaucrats and grifting politicians finally out of the way.
Not just rent control. Governments buying up all the developable land they can to keep it off the market and development fees (over $100k/unit to the government in California) play a big part in housing costs.
Yep. Was trying to keep it simple for a lefty.
The govt gets $ via the funds it confiscated through taxation.
Nah. They get their money by printing it.
The Venezualization of America.
I prefer to call it “Stalinization” or “Maoization,” but, point well-taken.
‘That will bring down inflation because taxes never get passed on to the consumer.’
– AOC, soon.
Thankfully, Joe doesn’t get to make those changes to tax law by fiat, no matter how much malarkey he spouts about it.
Good.
Corporations as a whole are absolutely lousy with virtue-signaling, DEI pushing leftists.
It’s long past time conservatives stop fighting for people that hate them.
The tax on stock buybacks is so obnoxiously stupid and neo-communist. More fiscal demagoguery and illiteracy from the vile and worthless Dhimmi-crats.
Because, God forbid that a company’s owners (i.e., its stockholders) profit from their capital investment and risk-taking. And, God forbid that a company’s management and Board of Directors make its own decisions, regarding stockholder remuneration.
Also, Republicans should counter with legislation that denies corporations a tax deduction when they pay Hollywood actors, writers, producers and directors — 99.99% of whom are staunch Dhimmi-crats — over $1 million in compensation.
How do we work in large gains in the stock market by legislators, too?
Just wait until the dems get control of all branches. They’ll pass unrealized capital gains taxes on everything.
That nice house you thought you owned? It’s price has gone up tremendously, stop by the assessors office and pay off your unrealized gain sucker.
That nice IRA? Yep, unrealized gain sucker.
I can’t wait for them to tax my “imputed income” of living in my own house instead of paying rent!
One thing that really bugs me about this kind of demagoguery is that in their attempts to get multinationals they burn down small companies as they’re doing it.
For the Regime, this is a feature, not a bug.
The real problem is two-fold.
First, and most important, is that you’re spending too much.
Second, and worse in some ways, is the use of taxation as a social justice hammer. To incentivize and disincentivize behavior should not generally be the purpose of the tax code. Period. Set a standard, then stick to it. Exceptions – for good or bad reasons – destroy that standard.
The only fair tax is a flat tax. Make it on income alone.
Sweden’s Corporate tax is less than what we have now at 20.6 %
Heck Denmark’s is only 22, the country they wanted us to emulate.