GE has an army of tax experts who find every loophole they can. In addition, GE builds wind turbines and other green technology and receives tax credits for that. I agree that our tax system is far too complex and has too many built-in loopholes for corporations and the wealthy.
I would actually support a more simplified tiered system for individuals at a higher-than-current overall tax rate and lower tax rates for corporations (I know, that sounds like blasphemy). If corporations are taxed at a lower rate in the United States, they'll be encouraged to grow their operations here. That means more jobs staying in the U.S.
It's not only GE!
I would bet if you REALLY looked closely at the system, a whole lot of very wealthy people, corporations etc never pay any taxes at all.
Like Leona Helmsley said, "Only the little people pay taxes".
She had to have said that for a reason.
I think there is a scam of such EPIC proportions, it would make our heads spin!
I think you're probably right, LMC. We DEF need to overhaul the tax code and the IRS. I'm all for a federal sales tax replacing the IRS, with no tax on food and high taxes on luxury items like yachts, Rolex watches, vacation homes, etc.
I might consider a sales tax as well, habee, but for everything. Any time money changes hands. You "rent" your money to a bank (savings account) you pay sales tax on the (interest) price. Tax a house purchase or rental, a car purchase, and food. Tax a stock market purchase and a futures commodity purchase. Tax the purchase of raw materials to build your product to sell. Tax services (including your own labor to a company employing you). Tax everything.
My reasoning is that when exceptions are made the inevitable result seems to be that they grow into what we see today, which is unacceptable in my eyes.
Food for instance; is a restaurant meal taxed? if yes, why not a head of cabbage in the grocery store? If no, why not? It is a luxury, after all! If only pre-cooked food is taxed, what about the salad at a restaurant? What about pre-cooked and then frozen meat in the grocery store? Simpler and more effective to simply tax everything.
If the poor need help surviving, give it by way of charity from the govt just as it is today (food stamps, medicaid, housing allowance etc.). Everyone helps to support the country and those that need help can still get it.
Good points, Wilderness. I still think there should be a higher tax on "luxury items," though. The federal sales tax would be a great way for the government to earn revenue from illegal money, too.
Well, a yacht would already carry a much higher tax than a car. Plus, you have to figure out just what is a luxury - I have had people tell me that satellite TV, cell phones and in home security systems are all absolute necessities today. Odd as I lived through many years without any of them...
Consider that if you make differences that pretty soon a politician (with a brother in law that builds yachts) will advance the idea that yacht building takes a lot of people that all now have jobs, so we need to increase that number by cutting the sales tax on that item. Then some other politician that owes the first one a favor will jump on the bandwagon and presto! It's off and rolling - we'll soon cut the tax on luxury yachts to nothing to promote business and job creation while reducing pollution and illegal immigration. Or whatever.
Not that I would ever be disillusioned with or disparaging of our wonderful public servants in congress!
As of a few years ago, 72% of foreign companies and 57% of US companies doing business in the US paid no federal income taxes for at least one year between 1998 and 2005.
http://www.reuters.com/article/2008/08/ … 5620080812
I hope that major companies don't pay taxes, and then the government goes bankrupt.
Then no one will have to pay taxes!
"Jeffrey Robert "Jeff" Immelt (born February 19, 1956) is the chairman of the board and chief executive officer of the U.S.-based conglomerate General Electric."
"Immelt serves as the chairman of Obama's Council on Jobs and Competitiveness."
Seems to me that one of the root causes of such things is that the tax code has degenerated into primarily a took for social, political and economic engineering instead of a way to raise revenue for the govt.
There are tax breaks for everything imaginable, and if one is able to take advantage of a sufficient number of them then there is no tax owed. Unfortunately the ordinary cost of day to day living is not on the list with the result that those that primarily purchase these things have no tax breaks.
Take away the wars and the military spending and you have all the money you could ever want. Funny it is never mentioned.
"I've mentioned reducing our military budget several times on the forums." Sorry I live in the moment.
I am for what Huckabee espoused - stop taxing incomes and give the person the whole pay, but tax the productivity that results.
Congress has been toying with a national sales tax of 23%. Taxing the productivity would allow people to keep all of what they made and spend it to produce goods and services.
This would result in a pkg of gum costing 75cents but it would also allow the buyer to have more money to spend and might even make us'ns spend better, plus a continous flow of dollars into the treasury therefore making the dollar more solid.
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