Harris proposes raising the corporate tax rate to 28%, rolling back a Trump law

Ideally, yes - but until share buybacks are outlawed - companies will just ‘reinvest’ by buying up shares (increasing their price, and thereby existing shareholder wealth), and issuing them as bonuses to their C-suite in lieu of payment.. by-and-large avoiding a lot of the income tax that they would otherwise be due to be paid.

Our current late-stage capitalist corporate system is built upon layers and layers of tax-avoidance and self-enrichment at the cost of society as a whole.

I stated both. I listed both corporate and personal tax. What are you referring to?

edit - do you mean the personal bracket?

You have to bear in mind that the "like it used to be" part operated when digital card payments were not a thing. A customer would give you cash, and maybe you would write it down in your taxes, but there was no digital indicator of what actually happened.

Small business owners got to stay afloat by swindling the government, and this was the normal way for centuries.

I'm not saying it's right, just that the high business tax of the past wasn't as effective as you think it was, and will hit extremely differently this time around in the digital era.

The top marginal corporate tax rate never exceeded 52.9%. This is conflating the corporate tax rate with the individual income tax rate. The marginal rate was raised above 80% during the Great Depression, and it was raised above 90% in the 1940’s.

In the 1950’s, the top marginal tax rate was 90%, but people were allowed to avoid income tax by funneling income through corporate tax shelters, leaving a top effective tax rate that wasn’t much higher than it is today (the exact number is hard to calculate). Not only that, but the tax burden has also shifted dramatically since the 1950’s. In Eisenhower’s day, those earning more than $100,000 per year shouldered around 20% of the tax burden. Today, the equivalent economic class shoulders over 80% 40% of the tax burden.

Heres another flaw: when tax rates were 90%, the tax code also provided for tons of deductions that no longer exist. It also treated income from many sources as not being subject to tax, such as income derived from trusts or investments held in trusts. Imagine Bill Gates placing his Microsoft stock into a trust and only paying tax on the money he takes as a salary from his Foundation or from speaking fees. Sure, his “tax rate” might hit 90%, but the vast majority of his income would escape taxation. Such was the tax code under Eisenhower. You can’t just compare tax rates without also accounting for the rest of the tax laws including credits, deductions, exclusions, and definitions of taxable income.

So, no, corporate tax rates were literally never 90%.

Currently a flat 21%

Staggered based upon gross income just like personal taxes.

Tiny businesses 5% Small businesses 25% Mid sized companies 50%. Mega-corporations wth billions - 95%

No better: to the cost of living index. That way if they pump prices up like they have in the last few years, they choke themselves with their own rope.

Yeah me too but then the guy missed.

...Oh wait, you mean the other headline.

You might be right, but what's silly is that you think companies wouldn't do everything in their power to not reduce pay to both workers and the government at the same time. And they do. In fact, they lobby endlessly to lower their taxes as well as keep wages low, loosen regulations, dismantle the power of unions, roll back labor rights, and take away voting power of the people who would vote against their interests. You need to understand that the entire motivation of these companies is to maximize profit at all costs. "If you're going to lose the money anyway" is not something they have ever or will ever accept. That's like assuming that you accept that you will never eat another scrap of food ever again. Your survival depends upon it, and when access to it is threatened, you will lie and cheat and steal as much as is necessary to ensure your survival.

If the government taxed businesses at a higher rate and used that increased revenue to improve the quality of life and access to opportunities for all, I'd say that that's a much better use of that money. We've tried taxing businesses less in hopes of having anything other than piss trickle down to the workers. That's how we got here. Productivity has boomed, yet wages have stagnated and people are struggling to get by. It's time to stop propagating broken bullshit-ass Reaganomics and start advocating for your fellow human to be able to afford access to the bare minimum of food, shelter, and medical care. The GDP of the US is over $25 TRILLION. So why in the blue fuck are people still freezing and starving to death in this country? Unacceptable.

Rents have gone so insane that (assuming everything goes smoothly and we close) we will spend like $500 less per month by moving from our 2 bedroom apartment into a 4 bedroom 1800sqft townhouse. It'd be even less if interest rates weren't dog water right now haha. But there was only one other family competing to go under contract, so the high interest rate is how we got ahead of the upcoming gold rush. Houses are about to go for much higher than right now.

We could set it so that companies whose CEO's net worth is less than a half mil are exempt

It makes sense. More income, more bonus. It would also prevent companies from handing out bonuses while operating at a loss.

Close the loopholes that let companies with billions in revenue pay 0 in taxes.

Because socialism generally speaking works really really badly? Taxation should ideally be zero, but since there are obvious things 99% of us agree that should be funded in a centralized way, we have to have taxes.

The point of taxes is not to make everyone equal, the point is to fund those important things. For instance: police, military, education, basic healthcare (perhaps), charity for the less fortunate and certain natural monopolies like utilities.

State plus federal tax tho?

Not to mention health insurance and 401k (to replace pensions).

Our take home percentage is much lower than a few decades ago. Not to mention cost of living: housing and food.

Or be self employed.

Republicans take great strides backwards. The limit of our ambition is baby steps forwards.

That needs to be restored.

Thank you! I like this.

To be clear: I do not think we should do nothing. That was not what I was trying to suggest. I've just been around a while and seen this type of promise before. I am worried that some people are maybe over optimistic about these types of promises and how it might play out.

Re: your last paragraph: would you be willing to pay more for goods or have US based companies perform worse in your 401k? (I do not have any money in my 401k to be clear I'm pretty poor, but I know that people care about that 😂) I will continue being negative and assume they'd pass that cost onto us

Exactly! Good link

One thing I will mention. GMT above focuses on 15% of profits. It is trivial to manipulate that number. Which is why I am also for...

Openly transparent auditable money

Force companies that want to operate in your country to report sales made in your country so they're taxed on the revenues, kick em out if they don't report them.

Thanks for the reply! Would this work for tech companies? Biggest part of our Sp500. They're mostly "in the cloud" right? So it's pretty easy to move. And physical resources they leave behind would just be some data centers or whatever

Would love to see the video you mentioned if you can find it

Pessimistic Patricia