Quote:
Originally Posted by whodoyoulike
(Post 2158599)
That's exactly what the U.S. stock market is focusing on and not the events in France as someone mentioned earlier this week.
A few questions.
1) If this corporate tax reduction goes as planned, who picks up the corporate tax savings to continue running this country?
2) As it stands, don't we still have a HUGE deficit currently?
3) Which is more important, the corporate tax rate or the individual tax rate?
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For question No. 1-- Trump wants to jump start a morbid 10+ year economy. He also wants to create jobs, especially well-paying, blue collar manufacturing jobs. A lower corporate tax rate such as the kind Trump wants... will stop corporate inversions cold, which will bring home the trillions of dollars US companies have overseas. With these tax monies returned, plus all future income taxed at a lower rate, will help create jobs and stimulate capital spending. Why should our companies have to pay a nearly 40 per cent corporate tax rate here while the same companies pay only about 15 per cent, some more, some less, in places like Ireland?
Job creation and investment, capital and plants, etc., means more taxable income spent up and the down the chain, which will help run the country, so to speak.
For question No. 2-- Yes we have a huge deficit. That deficit is from
excess and irresponsible spending, not because of any lack of income from taxation.
Taxes is the citizens' money, both individual and corporate citizens, and not the government's money. People should never forget this. But, some people have, especially our politicians.
Tax relief should not have to be
paid for, plain and simple.
For question No. 3-- In my opinion, both are very and somewhat equally important. As I said earlier, companies will invest here once the tax environment improves. Money flows to where it is most welcomed and respected.
Individuals benefit from a lower tax rate too. More money in their take home pay means more money to spend and save, and to reduce individual debt.
A lower tax rate is much better and way more important than simply 'cutting' taxes.
