Front Office Football Central - View Single Post

SportsDino · 04-16-2010, 12:07 PM

Don't tax on revenue, it is an ugly mal-incentive, and doesn't jive with basic economics. Businesses operate at different levels of marginal profitability, and there is nothing wrong with that, in fact in most cases it is economically efficient. A tax on revenue punishes low margin business, unfortunately low margin businesses (such as basic food and materials) are often the most necessary for the success of an economy.

Meanwhile, businesses where revenue is high margin and over imaginary goods, say high-finance, the tax makes less of an impact on their operations, so these businesses actually get an increase in demand. We have it bad enough as it is letting the bankers run wild, for the love of whatever god(s) or principles you may believe in, don't make it worst.

I'd say the corporate tax is fine where it is, the problem is the insanity of the tax code and the massive corporate pork that offsets those taxes. Eliminate the targetted handouts that make some businesses larded up, use that to first reduce tax burdens on the working classes (leads to increased consumption and saving in the economy), and when economic efficiencies result in growth and larger tax revenues, selectively reduce federal obligations or reduce tax rates on corporations to potentially further grow the economy (that is a tough debate, most conservative stooges think you can lower taxes to grow the economy indefinately, but empirical evidence suggests otherwise to myself).

I guess you could argue I'm voting for option two, a tax raise (because I'd eliminate special deductions and corporate welfare)... and I do want to see individual burdens decrease (not for my bracket, and not for the ultra poor, but rather the oft neglected middle brackets). But I don't feel an increase in the rate itself is necessary, the businesses that end up paying that tax more often than not are the honest ones that are creating jobs. The loopholes are helping out the megarich businesses that won't end paying an increased rate anyway.

Also I could gripe about non-profits (I feel many of them are just money laundering fronts)... but I guess that is off topic.

04-16-2010, 12:07 PM	#3
SportsDino College Prospect Join Date: Oct 2001	Don't tax on revenue, it is an ugly mal-incentive, and doesn't jive with basic economics. Businesses operate at different levels of marginal profitability, and there is nothing wrong with that, in fact in most cases it is economically efficient. A tax on revenue punishes low margin business, unfortunately low margin businesses (such as basic food and materials) are often the most necessary for the success of an economy. Meanwhile, businesses where revenue is high margin and over imaginary goods, say high-finance, the tax makes less of an impact on their operations, so these businesses actually get an increase in demand. We have it bad enough as it is letting the bankers run wild, for the love of whatever god(s) or principles you may believe in, don't make it worst. I'd say the corporate tax is fine where it is, the problem is the insanity of the tax code and the massive corporate pork that offsets those taxes. Eliminate the targetted handouts that make some businesses larded up, use that to first reduce tax burdens on the working classes (leads to increased consumption and saving in the economy), and when economic efficiencies result in growth and larger tax revenues, selectively reduce federal obligations or reduce tax rates on corporations to potentially further grow the economy (that is a tough debate, most conservative stooges think you can lower taxes to grow the economy indefinately, but empirical evidence suggests otherwise to myself). I guess you could argue I'm voting for option two, a tax raise (because I'd eliminate special deductions and corporate welfare)... and I do want to see individual burdens decrease (not for my bracket, and not for the ultra poor, but rather the oft neglected middle brackets). But I don't feel an increase in the rate itself is necessary, the businesses that end up paying that tax more often than not are the honest ones that are creating jobs. The loopholes are helping out the megarich businesses that won't end paying an increased rate anyway. Also I could gripe about non-profits (I feel many of them are just money laundering fronts)... but I guess that is off topic.