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Forums - Microsoft Discussion - Microsoft admits to dodging $29B in taxes. Yes, billion with a B.

overman1 said:

so where do you think this money will come from if these companies dont pay taxes or recieve a tax cut?

A higher bottom line of a corporation will result in higher personal income. Higher personal income results in more income taxes.



Money can't buy happiness. Just video games, which make me happy.

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Baalzamon said:
You guys are stuck on the philosophy that a corporation is receiving benefits from the US government, though, when that simply isn't the case.

A corporation is a sheet of paper. The beneficiaries of a corporation are employees, shareholders, sometimes local residents (some corporations do good things, after all). If I go start a corporation and make a million dollars. The sheet of paper indicating I am a corporation did not benefit from our public infrastructure, our schooling, our welfare system in any way whatsoever. I, as the owner, benefitted.

If my corporation has to file bankruptcy, the corporation itself isn't benefitting from that, it is the individuals that the corporation name protected that are benefitting.

A benefit cannot be realized by a corporation, it is not possible. It can only be realized by people within the corporations environment.

Why exactly do you think Corporations are created?



In this day and age, with the Internet, ignorance is a choice! And they're still choosing Ignorance! - Dr. Filthy Frank

Baalzamon said:
overman1 said:

so where do you think this money will come from if these companies dont pay taxes or recieve a tax cut?

A higher bottom line of a corporation will result in higher personal income. Higher personal income results in more income taxes.

Unless it is invested back into the corporation. This is the priciple of tax write offs.  Members of the corporation put their money back into the corporation so it does not get taxed as personal income. This is why someone will buy a car with company money rather than their own because it will not be included in their own taxes.

Members of a corporation purposely keep their gross income low by buying assets within company or using the companies money to procure assets.



In this day and age, with the Internet, ignorance is a choice! And they're still choosing Ignorance! - Dr. Filthy Frank

Baalzamon said:
You guys are stuck on the philosophy that a corporation is receiving benefits from the US government, though, when that simply isn't the case.

A corporation is a sheet of paper. The beneficiaries of a corporation are employees, shareholders, sometimes local residents (some corporations do good things, after all). If I go start a corporation and make a million dollars. The sheet of paper indicating I am a corporation did not benefit from our public infrastructure, our schooling, our welfare system in any way whatsoever. I, as the owner, benefitted.

If my corporation has to file bankruptcy, the corporation itself isn't benefitting from that, it is the individuals that the corporation name protected that are benefitting.

A benefit cannot be realized by a corporation, it is not possible. It can only be realized by people within the corporations environment.

Really the corporation didnt benefit by people being able to get to work, the right of ways given to private utilities to get power, water, etc. to the corporation. The public education infrastructure that educated the workers, the legal protection the sheet of paper provides them, etc. etc. etc.

Since only the people can benefit as you put it then only the people should have power.

Thomas Jefferson said this (he actually wanted additions to the Bill of Rights to protect us from corporations as much as from government).

“I hope we shall crush… in its birth the aristocracy of our moneyed corporations, which dare already to challenge our government to a trial of strength and bid defiance to the laws of our country."



Its libraries that sell systems not a single game.

Dr.Henry_Killinger said:

Why exactly do you think Corporations are created?

For the benefit of certain people.

The ONLY possible beneficiaries of a corporation...are people.



Money can't buy happiness. Just video games, which make me happy.

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Baalzamon said:
Dr.Henry_Killinger said:

Why exactly do you think Corporations are created?

For the benefit of certain people.

The ONLY possible beneficiaries of a corporation...are people.

Exactly. People do not make corporations so that the corporations benefit themselves. That makes no sense.

If you make 1,000,000 a year for your job, it will be taxed as that. If you reinvest 950,000 back into the company, your working for and you only take 50,000 as your income then you are getting taxed for 50,000 personally.



In this day and age, with the Internet, ignorance is a choice! And they're still choosing Ignorance! - Dr. Filthy Frank

Dr.Henry_Killinger said:
Baalzamon said:
overman1 said:

so where do you think this money will come from if these companies dont pay taxes or recieve a tax cut?

A higher bottom line of a corporation will result in higher personal income. Higher personal income results in more income taxes.

Unless it is invested back into the corporation. This is the priciple of tax write offs.  Members of the corporation put their money back into the corporation so it does not get taxed as personal income. This is why someone will buy a car with company money rather than their own because it will not be included in their own taxes.

When I was a consultant in the 90s at a large Oil Company in the US. It was approaching tax time and one of the executive secrataries accidentally sent an email to the wrong distribution list. The email was detail to the executive level people how much they should include as benefits for use of company resources like planes, resorts, villas, etc. etc.  They based the flights for instance on how much it would cost to fly discount commercial flights. So say it was $500 per person. Then the executive was supposed to declare say $2000 for his family of 4.  One they were discount rates which a corporate jet isnt. Two they may declare $2000 of additional income, but that doesnt mean they paid $2000 more in tax it meant they paid the tax on the $2000. So back then the top rate was 35%. So they paid $700 for that $2000 discounted airfare.



Its libraries that sell systems not a single game.

thx1139 said:

Really the corporation didnt benefit by people being able to get to work, the right of ways given to private utilities to get power, water, etc. to the corporation.

Why doesn't this make sense to you?!? The corporation is a sheet of paper. All benefits, including the employees (who used our education), the utilities (who may be subsidized by tax dollars), our roads (which are subsidized), every single benefit, is realized by people who are involved in the corporation.

The PEOPLE are the ones realizing the benefits.



Money can't buy happiness. Just video games, which make me happy.

Baalzamon said:
overman1 said:

so where do you think this money will come from if these companies dont pay taxes or recieve a tax cut?

A higher bottom line of a corporation will result in higher personal income. Higher personal income results in more income taxes.

For who exactly?

Definitely not the middle class...

http://www.nytimes.com/2013/01/13/sunday-review/americas-productivity-climbs-but-wages-stagnate.html?_r=0



overman1 said:

For who exactly?

Definitely not the middle class...

http://www.nytimes.com/2013/01/13/sunday-review/americas-productivity-climbs-but-wages-stagnate.html?_r=0

I don't know about you, but I make an average wage, and invest a significant amount of my money in the stock market. When those companies are making more money because they aren't paying taxes, my investments are growing faster. When I sell these investments, I pay my fair share to Uncle Sam (and rightfully so).



Money can't buy happiness. Just video games, which make me happy.