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Forums - Politics - Stop Coddling the Super-Rich

Kasz216 said:
Of course, there is an argument that won't be made simply because liberals don't want to accept because they don't want to admit that government is less efficient then charities even though it's well documented.

Which is....

"Warren Buffet's money is better put into private charities, but if you raised the tax rate, it may raise more revenue from rich people who don't donate as much to charity and the pure increase in cash would offset the inefficiencies caused by Warren Buffets money going from private good charity, to bloated mediocre government ones."


I don't have the numbers to either confirm or deny an such a statement... but being that I like to play devils advocate... it's worth mentioning. I prefer every possibility to be considered personally.

I'd like to point out that what you are complaining about applies to those charities as well. Wasn't there a study out there that compared your donation to the Red Cross versus some smaller, more focused, charity that showed that the smaller charity got more of your money to the people that need it?

People will ALWAYS bitch about the highest level organization and how bloated it is when it comes to giving money to it, whether it's government, non-profit company, or some jesusy charity. Yet, you can very well chart people's increase in livelyhoods increase as organizational levels increase, even pertaining to private companies, despite all the bloat that people like to whine about.



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Rath said:
Kasz216 said:
 


If that's true, then there shouldn't be a need for progressive taxation, since if those people truley believe that they could support said programs volentairly, and since they're in large numbers.

You wouldn't need government mandates welfare, beause most people would donate too such programs anyway.

Well unless there attitude is "I should be taxed more, but until I do i'm going to blow all this money on myself!"  Which somewhat comes off more a just a positon held as a selfjustifcation so they feel better about their selfishness.

Or simply that there political views are that there should be government run welfare and healthcare programs and that the government should use progressive taxation to fund it. Holding that belief and not donating to charity is not hypocritical or contradictory.


Sure there is.  Afterall you can directly donate to the US treasury.  Nobody does however.

If you think you should be taxed more, and have the ability to self tax yourself and don't... how isn't that hypocritical?



Kasz216 said:
Rath said:
Kasz216 said:
 


If that's true, then there shouldn't be a need for progressive taxation, since if those people truley believe that they could support said programs volentairly, and since they're in large numbers.

You wouldn't need government mandates welfare, beause most people would donate too such programs anyway.

Well unless there attitude is "I should be taxed more, but until I do i'm going to blow all this money on myself!"  Which somewhat comes off more a just a positon held as a selfjustifcation so they feel better about their selfishness.

Or simply that there political views are that there should be government run welfare and healthcare programs and that the government should use progressive taxation to fund it. Holding that belief and not donating to charity is not hypocritical or contradictory.


Sure there is.  Afterall you can directly donate to the US treasury.  Nobody does however.

If you think you should be taxed more, and have the ability to self tax yourself and don't... how isn't that hypocritical?

Donating to the treasury is not being taxed. Pushing for higher taxes is a very different act than donating to the treasury - one is advocating a genuine change in the way a country is run and the other is little more than a gesture.



Rath said:
Kasz216 said:
Rath said:
Kasz216 said:
 


If that's true, then there shouldn't be a need for progressive taxation, since if those people truley believe that they could support said programs volentairly, and since they're in large numbers.

You wouldn't need government mandates welfare, beause most people would donate too such programs anyway.

Well unless there attitude is "I should be taxed more, but until I do i'm going to blow all this money on myself!"  Which somewhat comes off more a just a positon held as a selfjustifcation so they feel better about their selfishness.

Or simply that there political views are that there should be government run welfare and healthcare programs and that the government should use progressive taxation to fund it. Holding that belief and not donating to charity is not hypocritical or contradictory.


Sure there is.  Afterall you can directly donate to the US treasury.  Nobody does however.

If you think you should be taxed more, and have the ability to self tax yourself and don't... how isn't that hypocritical?

Donating to the treasury is not being taxed. Pushing for higher taxes is a very different act than donating to the treasury - one is advocating a genuine change in the way a country is run and the other is little more than a gesture.

Which if you don't make... makes you a hypocirt.  Since by pushing for higher taxes you are saying "we don't need this money the government could use it better".

Except.. while your saying that... your still using that money.  When you could give it to the government.  It's not like the government is running a surplus right now.

It screams "I don't want to help anybody else unless other people are forced too as well."



vlad321 said:
Kasz216 said:
Of course, there is an argument that won't be made simply because liberals don't want to accept because they don't want to admit that government is less efficient then charities even though it's well documented.

Which is....

"Warren Buffet's money is better put into private charities, but if you raised the tax rate, it may raise more revenue from rich people who don't donate as much to charity and the pure increase in cash would offset the inefficiencies caused by Warren Buffets money going from private good charity, to bloated mediocre government ones."


I don't have the numbers to either confirm or deny an such a statement... but being that I like to play devils advocate... it's worth mentioning. I prefer every possibility to be considered personally.

I'd like to point out that what you are complaining about applies to those charities as well. Wasn't there a study out there that compared your donation to the Red Cross versus some smaller, more focused, charity that showed that the smaller charity got more of your money to the people that need it?

People will ALWAYS bitch about the highest level organization and how bloated it is when it comes to giving money to it, whether it's government, non-profit company, or some jesusy charity. Yet, you can very well chart people's increase in livelyhoods increase as organizational levels increase, even pertaining to private companies, despite all the bloat that people like to whine about.


Only an increase in peopels livelyhoods on the top levels... and the main difference between corporations, charities and government is that corporations are trying to make a profit and keep their buisness running, charities are trying to help people, and polticians are just trying to get reelected and get good appointments for their friends they own and treat them independently.

There is a reason why workplace sociology suggests that any job should be limited to 150 people (or something close to that).  Anymore automatically produces inefficency, no matter the situation. 

It's called Dunbar's Number.

http://en.wikipedia.org/wiki/Dunbar%27s_number



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Jereel Hunter said:
irstupid said:
I don't get this article

if the rich paid more taxes that won't fix out debt problem at all. WE are tooo far in debt. hell if the rich all paid 100% of their taxes this year, no exception, the debt still would not be even dented.

and creating jobs? to create jobs its simple as cutting corporate tax rates. Read above post, if a company is making more money they can HIRE more people. simple as that. Raising corporate taxes only gets rid of jobs. Companies ONLY goal is to make money and please shareholders. The higher the taxes, the less money the company makes, and thus they can't expand, hire, give raises, bonuses, ect.

It's not that simple. Sometimes companies make money hand over fist, but it's not hand over fist enough. Giving rich people, or companies, more leeway to work with does not make them decide to use that extra money to make jobs. It means bigger bonus for the CEO, more money for shareholders, and maybe more employees/higher pay.

yes i know they don't create jobs for the sake of creating jobs.  They create jobs in order to make MORE MONEY.  thats it. 

If they are making a crap load of money, but realize if they hire more or open new department, expend so on, that they can make MORE money they will do that.

 

But that is something that can ONLY be talked about if they have money to spend.  When they are not makign money they can't spend money on building a new expansion or stuff even though in the long run it may make them money.  They can't take the RISK.



irstupid said:
Jereel Hunter said:

It's not that simple. Sometimes companies make money hand over fist, but it's not hand over fist enough. Giving rich people, or companies, more leeway to work with does not make them decide to use that extra money to make jobs. It means bigger bonus for the CEO, more money for shareholders, and maybe more employees/higher pay.

yes i know they don't create jobs for the sake of creating jobs.  They create jobs in order to make MORE MONEY.  thats it. 

If they are making a crap load of money, but realize if they hire more or open new department, expend so on, that they can make MORE money they will do that.

But that is something that can ONLY be talked about if they have money to spend.  When they are not makign money they can't spend money on building a new expansion or stuff even though in the long run it may make them money.  They can't take the RISK.

But letting them keep more money, and hoping they use it to create jobs is not the way to go. People don't become billionaires being free with their money. A better idea is to have higher taxes, with incentives for job creation. If a company has an obscene profit margin, they should pay taxes on it, unless they can show tangible job growth. For too many of these cases, this tax cut simply serves as a burden to the country so people who don't need it can pocket more money. As someone who is upper middle class, I personally I wouldn't mind paying slightly higher taxes to do my part in righting the country's economic woes, however I feel that those at the bottom should certainly not have to, and those in higher brackets should certainly do their part - though they often don't.



Jereel Hunter said:
irstupid said:
Jereel Hunter said:

It's not that simple. Sometimes companies make money hand over fist, but it's not hand over fist enough. Giving rich people, or companies, more leeway to work with does not make them decide to use that extra money to make jobs. It means bigger bonus for the CEO, more money for shareholders, and maybe more employees/higher pay.

yes i know they don't create jobs for the sake of creating jobs.  They create jobs in order to make MORE MONEY.  thats it. 

If they are making a crap load of money, but realize if they hire more or open new department, expend so on, that they can make MORE money they will do that.

But that is something that can ONLY be talked about if they have money to spend.  When they are not makign money they can't spend money on building a new expansion or stuff even though in the long run it may make them money.  They can't take the RISK.

But letting them keep more money, and hoping they use it to create jobs is not the way to go. People don't become billionaires being free with their money. A better idea is to have higher taxes, with incentives for job creation. If a company has an obscene profit margin, they should pay taxes on it, unless they can show tangible job growth. For too many of these cases, this tax cut simply serves as a burden to the country so people who don't need it can pocket more money. As someone who is upper middle class, I personally I wouldn't mind paying slightly higher taxes to do my part in righting the country's economic woes, however I feel that those at the bottom should certainly not have to, and those in higher brackets should certainly do their part - though they often don't.

here is a simple way to think.

 

Lets say you own your own business.  Now you make 1,000,000 in revenue in one year, ignoring expenses.  You have 10 employees you pay 50,000 each.  And you pay yourself 100,000.  This leaves 400,000 for the year left the business made.  Now what is corporate tax rate?  probably 35% roughly.  so 350,000 of tax.  That now means you only have 50,000 of money for the business. 

 

Now simple thinking.  If you had 400,000 or 50,000.  In which scenerio are you most likely to hire someone new? buy new machinery?  expand? ect.  And don't forget that buying new equipment or expanding means JOBS for those business that make the equipment or build the expansion, ect. 

THere was something on 60 minutes not long ago talking about companies going over seas to austria or something becuase the tax rate is only like 11% there.  Many say they would and want to come back to U.S. but the tax is too high to have any incentive to.  They are running a business here, they are not charities.  regardless how harsh that sounds, that is business.  So lowering tax rate could potentially bring back companies and thus MILLIONS of jobs.  Not to mentino a lower tax rate could bring companies that were never here here.  Hell just look at in the states of america.  Copmanies move all the time to different states that have better tax laws. 



irstupid said:
Jereel Hunter said:
irstupid said:
Jereel Hunter said:

It's not that simple. Sometimes companies make money hand over fist, but it's not hand over fist enough. Giving rich people, or companies, more leeway to work with does not make them decide to use that extra money to make jobs. It means bigger bonus for the CEO, more money for shareholders, and maybe more employees/higher pay.

yes i know they don't create jobs for the sake of creating jobs.  They create jobs in order to make MORE MONEY.  thats it. 

If they are making a crap load of money, but realize if they hire more or open new department, expend so on, that they can make MORE money they will do that.

But that is something that can ONLY be talked about if they have money to spend.  When they are not makign money they can't spend money on building a new expansion or stuff even though in the long run it may make them money.  They can't take the RISK.

But letting them keep more money, and hoping they use it to create jobs is not the way to go. People don't become billionaires being free with their money. A better idea is to have higher taxes, with incentives for job creation. If a company has an obscene profit margin, they should pay taxes on it, unless they can show tangible job growth. For too many of these cases, this tax cut simply serves as a burden to the country so people who don't need it can pocket more money. As someone who is upper middle class, I personally I wouldn't mind paying slightly higher taxes to do my part in righting the country's economic woes, however I feel that those at the bottom should certainly not have to, and those in higher brackets should certainly do their part - though they often don't.

here is a simple way to think.

 

Lets say you own your own business.  Now you make 1,000,000 in revenue in one year, ignoring expenses.  You have 10 employees you pay 50,000 each.  And you pay yourself 100,000.  This leaves 400,000 for the year left the business made.  Now what is corporate tax rate?  probably 35% roughly.  so 350,000 of tax.  That now means you only have 50,000 of money for the business. 

 

Now simple thinking.  If you had 400,000 or 50,000.  In which scenerio are you most likely to hire someone new? buy new machinery?  expand? ect.  And don't forget that buying new equipment or expanding means JOBS for those business that make the equipment or build the expansion, ect. 

THere was something on 60 minutes not long ago talking about companies going over seas to austria or something becuase the tax rate is only like 11% there.  Many say they would and want to come back to U.S. but the tax is too high to have any incentive to.  They are running a business here, they are not charities.  regardless how harsh that sounds, that is business.  So lowering tax rate could potentially bring back companies and thus MILLIONS of jobs.  Not to mentino a lower tax rate could bring companies that were never here here.  Hell just look at in the states of america.  Copmanies move all the time to different states that have better tax laws. 


Hate to break the news but your maths are totally wrong..

Corporate taxes are applied on profit, not revenue.. and they don't apply to company internal investments either..

In your scenario the tax would be 35% of 400k, which is 140k, leaving you with 260k of profit.

Now lets say you decide to buy 100k of machinery.

Your 400k of profit go down to 300k.

The tax only applies to the profit after investments not before, so you now pay 35% * 300k = 105k and you are left with 300k-105k = 195k.

So your 100k machine only cost you 65k in the end because the tax does not apply to investments...

Same thing if you decide to hire extra employees, you will deduct their salary from the profit before computing the taxes and they will actually reduce your final taxes...

It's the same in any country, so no the business tax does not reduce investments in hardware or hiring of more people the way you describe it...

What it reduces is the final income, meaning the portion you can redistribute to your investors if you have any.......



PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !

PS3-Wii gap : 20 millions and going down !

Ail said:
irstupid said:
Jereel Hunter said:
irstupid said:
Jereel Hunter said:

It's not that simple. Sometimes companies make money hand over fist, but it's not hand over fist enough. Giving rich people, or companies, more leeway to work with does not make them decide to use that extra money to make jobs. It means bigger bonus for the CEO, more money for shareholders, and maybe more employees/higher pay.

yes i know they don't create jobs for the sake of creating jobs.  They create jobs in order to make MORE MONEY.  thats it. 

If they are making a crap load of money, but realize if they hire more or open new department, expend so on, that they can make MORE money they will do that.

But that is something that can ONLY be talked about if they have money to spend.  When they are not makign money they can't spend money on building a new expansion or stuff even though in the long run it may make them money.  They can't take the RISK.

But letting them keep more money, and hoping they use it to create jobs is not the way to go. People don't become billionaires being free with their money. A better idea is to have higher taxes, with incentives for job creation. If a company has an obscene profit margin, they should pay taxes on it, unless they can show tangible job growth. For too many of these cases, this tax cut simply serves as a burden to the country so people who don't need it can pocket more money. As someone who is upper middle class, I personally I wouldn't mind paying slightly higher taxes to do my part in righting the country's economic woes, however I feel that those at the bottom should certainly not have to, and those in higher brackets should certainly do their part - though they often don't.

here is a simple way to think.

 

Lets say you own your own business.  Now you make 1,000,000 in revenue in one year, ignoring expenses.  You have 10 employees you pay 50,000 each.  And you pay yourself 100,000.  This leaves 400,000 for the year left the business made.  Now what is corporate tax rate?  probably 35% roughly.  so 350,000 of tax.  That now means you only have 50,000 of money for the business. 

 

Now simple thinking.  If you had 400,000 or 50,000.  In which scenerio are you most likely to hire someone new? buy new machinery?  expand? ect.  And don't forget that buying new equipment or expanding means JOBS for those business that make the equipment or build the expansion, ect. 

THere was something on 60 minutes not long ago talking about companies going over seas to austria or something becuase the tax rate is only like 11% there.  Many say they would and want to come back to U.S. but the tax is too high to have any incentive to.  They are running a business here, they are not charities.  regardless how harsh that sounds, that is business.  So lowering tax rate could potentially bring back companies and thus MILLIONS of jobs.  Not to mentino a lower tax rate could bring companies that were never here here.  Hell just look at in the states of america.  Copmanies move all the time to different states that have better tax laws. 


Hate to break the news but your maths are totally wrong..

Corporate taxes are applied on profit, not revenue.. and they don't apply to company internal investments either..

In your scenario the tax would be 35% of 400k, which is 140k, leaving you with 260k of profit.

Now lets say you decide to buy 100k of machinery.

Your 400k of profit go down to 300k.

The tax only applies to the profit after investments not before, so you now pay 35% * 300k = 105k and you are left with 300k-105k = 195k.

So your 100k machine only cost you 65k in the end because the tax does not apply to investments...

Same thing if you decide to hire extra employees, you will deduct their salary from the profit before computing the taxes and they will actually reduce your final taxes...

It's the same in any country, so no the business tax does not reduce investments in hardware or hiring of more people the way you describe it...

What it reduces is the final income, meaning the portion you can redistribute to your investors if you have any.......

Not in the United States as far as I can tell.

Corporate taxes are applied on Gross Income.  Which isn't profit.  It's just income minus the cost of the matierals of a product.  So things like workers wages and your wages are still counted.

http://en.wikipedia.org/wiki/Gross_income#What_is_income