Friday, March 25, 2011
What the Top U.S. Companies Pay in Taxes
For grade due April 1, 2011. How do we attract companies to pay their taxes in this country rather than others? "They" say if we lower tax rates then jobs will be created? Where? The Obama administration has proposed doing away with tax deferrals on overseas income. Is this fair?
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Companies pay taxes to other countries for one reason:other countries have lower taxes. The U.S. is reported to have the highest tax burdens than any of the industrialized countries. Companies are trying to reduce costs and increase profits, the U.S. is not the place to do this. Doing away with tax deferrals are unfair because they create an unleveled playing field for U.S. companies. Especially Germany, who only taxes on domestic operations. As for the lower taxes creating more jobs, this is true because more companies will begin to hire more people and they would also pay more taxes to the us. Overall, over taxes may be more beneficial for our country.
ReplyDeleteI do not believe that we should force companies to pay all of their taxes in our country. As indicated by the article, this action would most likely result in increased corporate taxes for consumers. People are struggling to pay their bills, I sincerely doubt these added costs would make their lives any easier. If jobs were created, companies might feel more complied to hire more workers in their factories. It is difficult to say whether the plan is "fair." Although many corporations are generating exorbitant profits, it seems more thought needs to be put on the matter in order to come with a more equitable solution for everyone.
ReplyDeleteIf one really wanted to have corporations pay taxes in America they would raise the incentives for doing so. I have two solutions, reducing taxes or forcing corporations to stay here. If we reduced taxes on corporations the government would be forced to look for other revenue sources. If corporate taxes were reduced it is inevitable that private individuals would end up with the bill. This would reduce the amount of money spent on companies by consumers making it less profitable for them to do business here. The other option is by finding something to do here that they cannot do anywhere else. For example resource mining or manufacturing of wind turbines, solar panels, appliances ect. Subsidies for this kind of business are far more practical and can end up foraging the future american economy.
ReplyDeleteCompanies do not want to set their production sites here in the United States because our taxes are too high, as compared to other nations. Obviously, it would seem to make perfect sense for a company to establish themselves overseas and pay lower taxes rather than a higher one. If the government does want to keep companies on American soil then they would have to cut back on the taxes they implement and opt for a lighter version.
ReplyDeleteOne way to encourage U.S. companies to pay taxes in America rather than overseas would be to lower the tax rate. By lowering the tax rate the companies would pay less and this would lead to many beneficial outcomes. One example would be the creation of more jobs because the companies have extra spending money.
ReplyDeleteOne way to attract businesses to pay taxes in the country is to lower tax rates because then they won't be so tempted to conduct business in foreign countries. Doing away with tax deferrals are unfair to American industries because then they would have to compete (unsuccessfully) with others, especially Germany. Businesses would often shift the burden of the tax on consumers and it's the middle or lower class that are really affected by that.
ReplyDeleteThe U.S has to be competitive in order to get companies to pay their taxes. We must lower our tax rate into a single flat tax, you can't hope to attract a company when they feel like their profits are being leeched out. They get taxed on a local, state, and then national level and soon a billion dollars becomes only a percentage of their gains.
ReplyDeleteCompanies should be penalized for moving jobs overseas and awarded for moving to green technology. A sort of stick or carrot approach would attract companies and then make them stay in America.
In order to have corporations in America, we need to lower the tax rate they pay. Doing away with tax deferrals is unfair. It makes American Industries become more competitive, and raise the prices on their goods, which we take the burden of.
ReplyDeleteThe government should lower tax rates in order to become competitive with other countries when it comes to business. We should also penalize compies that pay taxes abroad and yet claim to be domestic. The only way to stop this is to become more competitive.
ReplyDeleteI think corporate taxes should be lowered, but I think we need to be more strict in enforcing their payments because the companies that do "pay taxes" are really not paying what they should. I also feel that companies that claim to be american domestic companies shoud have to pay taxes to us and the overseas companies. That will be an incentive to bring their companies back to the US because then the foreign taxes will be the burden. As for tax deferrals, in theory they aren't a problem because theoretically they are paying the same amount as they would initially, just at a later date. This is not the case and corporations abuse their privileges especially with overseas income. I don't think its fair to rid of it for overseas income but I do think its in the general public and government's best interest.
ReplyDeleteCorporations will always be selfish. It's all about the profit. They move to other countries because our taxes are too high and cut into their profits. The only solutions I have to offer are 1) lower taxes (the most obvious) and 2) punish those companies who do move. If tax rates are lowered, more companies will stay here creating jobs for Americans. These jobs will mostly be blue collar but nonetheless jobs. Doing away with tax defferals will only cause more competition (especially with Germany) and becuase of this higher prices.
ReplyDeleteTo attract businesses to pay taxes, the government should lower the tax rate and enforce them more strictly. Lowering taxes will in turn lessen the stress placed on the middle and lower classes, who usually absorb most increases in taxes through a lower salary. With less taxes to pay, businesses will hire more people to work for them. Doing away with tax deferrals on oversea income is fair and will likely bring many companies back to America. Unfortunately, it may also raise the price consumers are paying.
ReplyDeleteI agree that in order to bring more companies into the United States we must lower the tax rates. As a country we must become more competitive with our tax rates or else the companies will go elsewhere. It is unfair but it must be done.
ReplyDeleteIt seems unfair to lower taxes on these corporations, but raising them will only hurt the average citizen. In order to maintain high profits, corporations will cut costs (lay off workers) or raise prices. Alyssa's right, it isn't fair but it must be done and we must place our tax rates so as to remain competitive.
ReplyDeleteOur tax rates should be lowered to attract more companies to our country. When taxes are lowered, the employment rate will rise because corporations will now hire more people. This is the only way our country can stay competitive with the other countries in the world.
ReplyDeleteThe United States can attract companies to pay taxes in the US rather than other contries by lowering its taxes. This appeals to companies because lower taxes mean greater revenue. In turn, more people will get hired by these companies because they can afford to do so.
ReplyDeleteI think in order for us to get companies to stay domestically located and therefore pay their taxes here, we are not only going to have to lower their tax (which apparently they hardly pay anyway) but perhaps lower the wage our workers accept. Our minimum wage is way above anything the outsourced labor receives. Reducing the wage rate here will cause workers to be disgruntled for a while considering but companies will have more revenue and more jobs may be created here because it will be cheaper. I understand the wage is sticky on the way down and working for a labor wage like India/China to us is basically nothing but at this point I see no other option that would create a more drastic change because as I said, the corporation doesn't really pay their taxes anyway so would lowering it really do that much?
ReplyDeletei think that if the united states lowers their tax rate it will offer an incentive for other foreign companies to invest within the united states. this will in turn increase our money supply, help the economy and overall help our country as a whole. if we fail to do this then the companies will go elsewhere so it must be done to encourage foreign investment.
ReplyDeleteThe only incentive that will make corporations want to stay in the U.S. for business is the lowering of tax rates. It may seem like we are simply giving these big business giants a break but in the macroeconomic spectrum, it is best for all of us. We all depend on these big companies for jobs and with lower taxes, these companies will have more money to spend and this will turn into more wages for their employees. Companies will always go where they will make the greatest profit and it only makes sense to keep them here.
ReplyDeleteWe can attract companies to pay their taxes in this country by lowering the tax rates for businesses. This could also catch the attention of foreign companies who could possibly try to invest into America. If we are able to keep these companies in the U.S. we would be helping everyone out. This is done because the huge companies supply us with many jobs, and that will help to circulate the money in our economy.
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