Obama wants to increase the taxes on dividends the corporations pay their stock holders to 39.6%. This represents double taxation as the dividends are paid from the net profit of operations after the corporate taxes are paid. The will hurt the retirees as alot of their investments are in equities. The total taxes would raise to 64.1% on those profits passing thru the corporate dividend system.
If every corporate tax loophole/shelter etc... were eliminated, I'd be fine with 20%. It doesn't currently matter how high or low the corporate tax rate is when companies that make $11 Billion in profits pay less in taxes than I do.
I agree Chris, eliminating loopholes is the only way to level the playing field, cut into corporate influence on government and vice versa and return to a true free market. Lowering the tax rate will also give the economy a much needed long term boost in confidence. It is encouraging to see Geitner and Obama realizing this(?), but the question lingers...why now? Oh yeah, it's an election year. As Obama plays both sides until November, the overarching question behind all these moves will be "If it is a good idea now, why wasn't it a good idea 3 years ago?"
Obama wants to increase the
Obama wants to increase the taxes on dividends the corporations pay their stock holders to 39.6%. This represents double taxation as the dividends are paid from the net profit of operations after the corporate taxes are paid. The will hurt the retirees as alot of their investments are in equities. The total taxes would raise to 64.1% on those profits passing thru the corporate dividend system.
If every corporate tax
If every corporate tax loophole/shelter etc... were eliminated, I'd be fine with 20%. It doesn't currently matter how high or low the corporate tax rate is when companies that make $11 Billion in profits pay less in taxes than I do.
I see this as a very small
I see this as a very small step in the right direction. Lower taxes and increased fairness are never bad things.
I wonder why obama waited for an election year to broach the subject. Just coincidence, I'm sure.
I agree Chris, eliminating
I agree Chris, eliminating loopholes is the only way to level the playing field, cut into corporate influence on government and vice versa and return to a true free market. Lowering the tax rate will also give the economy a much needed long term boost in confidence. It is encouraging to see Geitner and Obama realizing this(?), but the question lingers...why now? Oh yeah, it's an election year. As Obama plays both sides until November, the overarching question behind all these moves will be "If it is a good idea now, why wasn't it a good idea 3 years ago?"
Great idea. Now if they would
Great idea. Now if they would only close all the other loopholes, credits and the like in the tax code, even the graduated tax will be better.