Yes, we are in a lot of trouble when it comes to our Debt level as a Country and if we don't fix that problem we are all going to be in worse troubles than we are now. Much is being discussed in terms of cutting spending by Republicans, Democrats and Tea Party members. Congress is feeling the pressure, especially by the Tea Party. All this is good but it deals with only 1/2 of the equation, cutting spending. The other part is to raise tax revenue for the government, which is off the table and not being discussed because they say we pay too much taxes now. That is why the Bill to attempt to have the wealthiest millionaires in our country pay more taxes was defeated in the Congress.
What we hear now is that our Corporate taxes are the highest in the world and need to be reduced. This is both true and false. How can that be both true and false at the same time, you ask? That's simple to answer. It is because while we have a top Corporate tax rate of 35% on profits, we also have a 0% tax rate for many Corporations as well if they can fit through the loophole. That is why companies like GE, Bank of America
and many, many others pay no taxes at all. That's right, both companies made Billions of dollars in profit last year, but paid no Corporate taxes. In fact, Bank of America even got a rebate from the government. Here's the actual date on the Corporate Tax rate by Country.
Notice what it says for the US. The best way to use this list is to think of a Country you think is financially doing well. For example, many believe Germany is the best economy in the EU right now financially. Well, their Corporate tax rate is 29.8%, but all companies pay that amount in Germany!
Country/Region Corporate Tax Rate
Bosnia and Herzegovina 10%
Burkina Faso 10–45%
Cape Verde 15%
Central African Republic 19%
Czech Republic 20%
El Salvador 25%
Hong Kong 16.5%
South Korea 13/25%
New Zealand 28%
Saudi Arabia 20%
South Africa 28%
United Kingdom 21–28%
United States 0–35%
Uzbekistan 9 %
I think we should lower the overall Corporate tax rate but all companies profits should be taxed and all should pay with no exceptions. I don't care if the Corporate Tax rate was 25% instead of 35%. I'LL BET WE WOULD STILL GET MORE TAX MONEY INTO THE U.S. TREASURY THAN WE DO TODAY! After all, if we are the policemen of the World as Libya seems to show, we need to pay for it somehow and just cutting spending is not the answer.
Here's something that was published in August, 2008 and received little notice. You can click on this link and read the entire article.
"Two out of every three United States corporations paid no federal income taxes from 1998 through 2005, according to a report released Tuesday by the Government Accountability Office, the investigative arm of Congress."
Are you seeing the problem now more clearly? I hope so!
Labels: business taxes, Corporate Tax rates, Countries, taxes, World