US to Have World's Hghest Corporate Tax Rate

Oh, good, then we can cut our corporate tax rate, and our credit rating can get cut too, just as Japan's was yesterday.

Our credit rating will be cut by whom?

Ireland and Iceland also cut their corporate tax rate.

And I suppose that is relevant only because our weather is similar to Iceland?

Socialist, you aren't helping your case... Ireland's rate was low for decades.... through its mega growth. The rate didn't just get low, meaning your inference about it as source of problems is illogical.

Yeah, except for the fact that most major U.S. corporations pay almost nothing in corporate tax so the effective rate is actually zero.

Iceland cut their corporate tax rate only a few months before their collapse.

" Ireland's rate was low for decades.... through its mega growth."

What mega growth? Most of their growth was fueled by a massive housing bubble.

Not really... what do you think fueled the housing bubble?

"Iceland cut their corporate tax rate only a few months before their collapse"

Which pretty much demonstrates that it had nothing to do with the collapse then...

"Not really... what do you think fueled the housing bubble?"

Cheap credit and poor regulation. THe Financial Crisis Inquiry Commisison just put out their report this week. You should read it.

How will a lower corporate tax in the US result in companies creating jobs here when they can hire workers in India and China for 1/10 the salary? You must answer this question otherwise corporate tax cuts will not create a single new job.

"Cheap credit and poor regulation. THe Financial Crisis Inquiry Commisison just put out their report this week. You should read it. "

Wasn't that US? You were talking about Ireland.

Either way, aren't you disproving your own point....? That its not taxes.

The bubble started in the US and spread globally. That is why we call it the GLOBAL financial crisis.

How will a lower corporate tax in the US result in companies creating jobs here when they can hire workers in India and China for 1/10 the salary? You must answer this question otherwise corporate tax cuts will not create a single new job.

> The bubble started in the US and spread globally. That is why we call it the GLOBAL financial crisis.

Then why are you trying to introduce tax rates in other countries as evidence?

Are you going to answer my question or continue avoiding it?

How will a lower corporate tax in the US result in companies creating jobs here when they can hire workers in India and China for 1/10 the salary? You must answer this question otherwise corporate tax cuts will not create a single new job.

Saying we have the highest tax-rate ignores the huge deductions and subsidies some companies get. That's why we need to lower the tax rate and take away deductions so more companies pay taxes and that the burden is evenly spread and the mis-allocation of capital ended.

That said we should do the same on personal income taxes.

Do you honestly trust Congress do abolosh subsidies and deductions? What will end up happening is they will lower the corporate tax rate while leving most subsdies and deductions in place. Hence, we should not lower the corporate tax rate.

Anyone notice how no Republicans clapped wen Obama said to abloish subsidies for oil compnaies?

"US to Have World's Hghest Corporate Tax Rate"...

too bad no large companies actually pay it. Seems taxes are for suckers like us.

http://www.nytimes.com/2011/02/02/business/economy/02leonhardt.html?ref=business

A big reason that subsidies need to be taken out of the system and rates come down. The companies that are not dialed into Washington Corporatocacy are subsidizing the ones that are. Lower tax rates reduce the value of gaming the tax-system and engaging in tax arbitrage.

Only little people pay taxes.

--Leona Helmsley

Well, we can always depreciate our currency and pay for things that way. That only hurts the low income earners anyway? What could go wrong? Be another Egypt?

http://www.ritholtz.com/blog/wp-content/uploads/2011/02/food-gas-expenditures.jpg

Democracy is a great thing. If it works in Egypt, maybe we can try it here. What is more Democratic than one unelected judge deciding the fate of all of healthcare?

"Lower tax rates reduce the value of gaming the tax-system and engaging in tax arbitrage."

You know what works better at reducing the value of gaming the system? Punishment.

How would you punish someone for using a loophole built into the system with the intent of reducing taxes?

Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery.

………..Winston Churchill

How do you tell a communist? Well, it's someone who reads Marx and Lenin. And how do you tell an anti-Communist? It's someone who understands Marx and Lenin.
Ronald Reagan

"When knowlege and reason fail you can always google meaningless slogans." -- malthus

That's a good question Jordyn. But one man's loophole might be another man's sham: http://www.reuters.com/article/2010/01/21/ernstandyoung-taxshelter-sentencings-idUSN2121154520100121

Of course, I only remember individuals and their advisors getting in trouble for such things.

Yeah, if you play in the grey areas, it may turn out you ended up on the wrong side of the dividing line between tax avoidance and tax evasion. It's pretty obvious that the shelters described in that article exist for no purpose other than to try to escape taxes, which is a good sign that they're problematic.

On the other hand, lots of businesses claim perfectly legitimate deductions. Credits for R&D are often mentioned as a reason why biotech and pharmaceutical companies pay such low taxes. They're not doing anything illegal--the tax code just allows them to end up paying single digit tax rates due to the huge amount they spend on research.

"How will a lower corporate tax in the US result in companies creating jobs here when they can hire workers in India and China for 1/10 the salary? "

Because the kind of jobs we should be creating should not be the unskilled ones that they can handle.

"You must answer this question otherwise corporate tax cuts will not create a single new job. "
Let's see... if someone doesn't answer the genius, the world stops working?

"Democracy is a great thing. If it works in Egypt, maybe we can try it here. What is more Democratic than one unelected judge deciding the fate of all of healthcare?"

Genius has it backward... as usual.

"How will a lower corporate tax in the US result in companies creating jobs here when they can hire workers in India and China for 1/10 the salary? "

Because the kind of jobs we should be creating should not be the unskilled ones that they can handle."

You think engineering, law, radiology, and IT are unskilled? Because those jobs are going abroad right this very minute.

U.S. firms outsource legal services to India

http://www.nytimes.com/2007/08/21/business/worldbusiness/21iht-law.4.7199252.html

Offshoring Radiology Services to India

http://web.mit.edu/ipc/publications/pdf/06-005.pdf

U.S. Insurers Increasingly Outsourcing Actuarial Work to Overseas Talent

http://www.insurancejournal.com/news/national/2008/12/23/96492.htm

But don't worry, only unskilled jobs are being outsourced...

Companies are offshoring finance and accounting functions that are further up the value chain.

http://www.cfo.com/article.cfm/10607206

Airlines offshoring repair work:

http://www.pbs.org/wgbh/pages/frontline/flying-cheaper/#

So please tell me somewherelese: How will lower taxes create jobs (both skilled and unskilled) in the U.S. when companies can go abroad and hire the same talent for a fraction of the cost?

see this piece on the disappearance of our high-paying jobs:

http://money.cnn.com/2011/01/31/news/economy/low_wage_job_growth/index.htm

the whole damned country can work in fast-food and retail, right?

bump

"You think engineering, law, radiology, and IT are unskilled? Because those jobs are going abroad right this very minute. "

Let me know the week we have less lawyers than the previous week... I'd be thrilled. We certainly don't need more.
Engineers? We can't get enough of them here. We have a SHORTAGE.

You named accounting... even YOUR LINK notes it is not the skilled stuff, it is the low-skill stuff like error detection and reporting. That 'aint skilled.

Again, you speak a lot on things you know little about.

> U.S. when companies can go abroad and hire the same talent for a fraction of the cost?

If it is the same talent, then it isn't very skilled. If a guy with english as a second language can do a better job than you via a webcam, then, sorry, you are not skilled.

"Engineers? We can't get enough of them here. We have a SHORTAGE."

No, we do not:

http://www.soc.duke.edu/GlobalEngineering/pdfs/WhereEngineersAre.pdf

Tech firms invent shortage panic

http://www.ajc.com/opinion/tech-firms-invent-shortage-190632.html

The United States’ education system produces a supply of qualified [science and engineering] graduates in much greater numbers than jobs available." - Harold Salzman, Ph.D. , The Urban Institute

"First, no one who has come to the question with an open mind has been able to find any objective data suggesting general 'shortages' of scientists and engineers." - Michael S. Teitelbaum, Vice President, Alfred P. Sloan Foundation

"Recent policy reports claim the United States is falling behind other nations in science and math education and graduating insufficient numbers of scientists and engineers. Review of the evidence and analysis of actual graduation rates and workforce needs does not find support for these claims." - Urban Institute study Into the Eye of the Storm

http://www.numbersusa.com/content/learn/issues/high-tech-workers/there-no-tech-worker-shortage.html

No, The Tech Skills Shortage Doesn't Exist
Employers game the system and misrepresent the key market indicators.

http://www.informationweek.com/news/global-cio/outsourcing/showArticle.jhtml?articleID=205601556

"Indeed, research finds that the real wages in S&E occupations declined over the past two decades and labor market indicators suggest little shortage"

http://www.urban.org/UploadedPDF/411562_Salzman_Science.pdf

"Let me know the week we have less lawyers than the previous week... I'd be thrilled. We certainly don't need more."

There might be more lawyers, but that means nothing. WHat matters is the number of JOBS for lawyers. That is on the decline:

http://www.nytimes.com/2011/01/09/business/09law.html

It was also recently reported that the number of LSAT test takers are down 16%, so there will be fewer lawyers down the road.

"If it is the same talent, then it isn't very skilled. If a guy with english as a second language can do a better job than you via a webcam, then, sorry, you are not skilled."

English is not a second language in India. It's their primary language.

new study by the Urban Institute shows that universities are producing more than enough graduates in Science and Math in this country, but corporations continue to claim there aren't enough Americans so they must hire foreign workers on H-1B visas.

http://www.youtube.com/watch?v=9LXvGD5HgIg

The WSJ also did a great piece a few years ago tearing apart the engineer shortage. And this was from 2005, when there mere more jobs than today:

Behind 'Shortage' of Engineers: Employers Grow More Choosy
Job Hunters Face Long Lists Of Requirements as Web Brings Flood of RésumésTwo Hires From 158 Applicants

http://online.wsj.com/article/SB113210508287498432.html?mod=home_page_one_us

FULL article here:

http://www.cs.ucdavis.edu/~matloff/Archive/WSJDisputesEngrShortage.txt

Wait, why should companies be forced to hire poorly qualified people in favor of well qualified people? And, if you don't want jobs moving offshore, how does this possibly help employers actually trying to keep jobs in the US?

Who said that US workers are poorly qualified? If you had bothered to read the WSJ article, many employers are complaining that US engineers are OVERqualified.

And of course overqualified is code word for too expensive.

Most of the top engineering schools in the world are in the U.S. That totally disprives that US workers are poorly qualified. How many Indians come to study in the U.S.?

And how many Americans go to study in India? Not many.

That doesn't prove anything. An Indian that comes to the US to study still needs an H1-B to get a job when they graduate.

The article you posted demonstrates that the reason for the shortage is that employers are picky. What's wrong with being picky and wanting someone well qualified? There's no indication that there's an actual preference for foreigners or a desire to pay less.

companies most certainly hire foreigners because they work for less:

http://www.youtube.com/watch?v=TCbFEgFajGU

DHS has also found that 20% of H1-B applications are fraudulent:

http://www.businessinsider.com/the-h-1b-fraud-rate-over-20-says-uscis-2009-2

"I was one of the first [CEOs] to use H-1B visas to bring workers to the U.S.A. Why did I do that? Because it was cheaper."

--former software industry entrepreneur CEO Vivek Wadhwa

http://www.cs.ucdavis.edu/~matloff/h1b.html

also, Bush made it so that now you can work on a student visa. No H1-B required.

You can't work on a student visa for very long.

And, you seem to be missing my point: your original WSJ article said that the reason for companies saying there was a shortage of engineers was because they were picky. I'm sure there are some companies that use H1Bs for cheaper labor; DHS should fix that by penalizing the fraudulent cases.

In any case, even if companies were using H1Bs exclusively for cheaper labor, I'm struggling to figure out how you think we're going to encourage them to stay in the US as opposed to going offshore by making their labor more expensive.

"I'm struggling to figure out how you think we're going to encourage them to stay in the US as opposed to going offshore by making their labor more expensive."

Because no matter how much you lower taxes, NOTHING will stop them from going abroad. Do you know how much an Indian engineer makes? $12,000 a year. How many Americans will work for that much?

So how do you encourage companies to create jobs in the U.S. when they can get the same labor overseas for less than half the cost? If you can't answer this question, then you will never create a single new job.

"Wait, why should companies be forced to hire poorly qualified people in favor of well qualified people?"

Its called Socialism!

Alpo has already made it clear that his goal is to make everyone broke.

"If you can't answer this question, then you will never create a single new job."

Actually, I've created many jobs... all well before I answered the question.

WHOOPS.

Where are you getting that companies should be forced to hire unqualified people? I NEVER said that.

I was talking about cheap overseas labor. I don't know how the conversation tuend into one about unqualifed workers.

Socialist, if the radiologist can be replaced by a computer algorithm, should we ban computers?

If actuarial functions can be replaced by an advanced version of Quicken, should we ban quicken?

If lawyers can be replaced by ... well what if lawyers can be eliminated and not replaced, what do we do?

where did you go somewherelse?

Socialist, no answers to my questions?

"Where are you getting that companies should be forced to hire unqualified people? I NEVER said that. "

You support unions...

"where did you go somewherelse?"

I created some jobs. I know you mistakenly thing governments do that.

well, so much for those corporate tax cuts in Japan:

http://www.reuters.com/article/2011/03/25/japan-economy-budget-idUSL3E7EP06B20110325

""Where are you getting that companies should be forced to hire unqualified people? I NEVER said that. "

You support unions..."

Unions don't decide who to hire bozo.

Socialist, if the radiologist can be replaced by a computer algorithm, should we ban computers?

If actuarial functions can be replaced by an advanced version of Quicken, should we ban quicken?

If lawyers can be replaced by ... well what if lawyers can be eliminated and not replaced, what do we do?

"Finance Minister Yoshihiko Noda has called a "once in decades" set of tax code revisions looks likely to sit on the shelf into the new fiscal year, denying businesses a 5-percentage-point tax cut and saving big earners from higher income taxes, the Nikkei reported in its Friday morning edition."

http://www.ytwhw.com/2011/0325/Key-Tax-Provisions-Hang-In-Limbo-Nikkei.html

and if those "Robo Radiologists" screw up, who do I sue for malpractice?

Maybe your propensity to sue is why there are robo radiologists in the first place.

Looks like Ireland might not be able to keep their low coproate tax rate much longer:

"As part of the talks, Ireland wants better terms on €85bn (£74bn) bailout loans from the EU and IMF, claming interest payments are crippling the economy.

France and Germany say that before they consider the reducing the rate on €40bn EU segment of the rescue package, Dublin should bring its corporate tax rate - the lowest in eurozone - in line with the rest of the member states."

http://www.telegraph.co.uk/finance/economics/8406705/France-raises-pressure-on-Ireland-to-raise-corporation-tax.html#

Socialist, you want the world to be socialist or just the United States?

"Maybe your propensity to sue is why there are robo radiologists in the first place."

Roba radiologists won't prevent lawsuits. THen I will just sue the software maker, which is even better since there will be more money to go after.

Excellent.

You aren't even expecting good medical care. Your preference is just to get bad medical care so you can sue and get a big payment. Your greed shows no bounds.

I never said I want bad medical care. Did you fail reading comprehension?

Then why are you more focused on who to sue than getting healthy?

Because computers are not doctors. Nor should they be.

Socialist lacks logic?

"US to Have World's Hghest Corporate Tax Rate"

Not that corporations are paying taxes...

"G.E.%u2019s Strategies Let It Avoid Taxes Altogether"

"The company reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States.

Its American tax bill? None. In fact, G.E. claimed a tax benefit of $3.2 billion. "

http://www.nytimes.com/2011/03/25/business/economy/25tax.html?_r=3&partner=rss&emc=rss

Yes, we suckers, er, I mean "tax payers" paid GE.

Our laws are made by the super-wealthy, for the super-wealthy; is it any surprise that GE doesn't pay any corporate taxes? Why pay $300 or $400M in taxes when you can buy politicians for pennies on the dollar, without any pesky transparency issues?

> Did you fail reading comprehension?

Ironic, coming from Alpo....

> Unions don't decide who to hire bozo.

Wrong again, genius.

The New Teacher Project, a non-profit group, analyzed hiring in places like New York City and San Diego. It found that in four out of 10 hires, principals had virtually no control over which teacher wound up in which classroom. Because of, get this, union rules. And that's just one example.

And you're saying the unions don't have any say on who you can hire on a union construction project?

Moronic.

Hiring decisions are made by the NYC DOE. The teachers union does not get to decide who gets hired and sho does not. Deciding which teacher gets HIRED and which one ends up in a classroom are two entirely different things.

And the "New Teacher Project" is a Michelle Rhee front group. I would not be so quik to cite it:

http://www.usatoday.com/news/education/2011-03-28-1Aschooltesting28_CV_N.htm

You see, one quality of somewherelese is that no matter what I say, he will disagree with me. In order to disagree with me, he makes stuf up, like that no white collar jobs are being outsourced or that the US has a huge shortage of engineers. No matter what I say, he will disagree. If I say the sky is blue, he will say "No you moron, the sky is purple."