Tuesday, September 19, 2006

Yeah, Right. "Evil" Corporations

Next time some spoiled brat socialist whines and gripes about how corporations are evil and that they don't pay their fair share, I'm going to ask them how many social programs $71.8 billion would finance.


gl said...

Would be interesting to see what % corporate income tax takes up of total tax revenue. I think you'll find it's quite low. I'm an advocate of no corporate tax at all ! and besides, there are lots of things that US companies can do to pay less tax (I know this from experience). It's quite an inefficient tax as well I think. Another interesting exercise it to have a look at how much it costs the government to raise a dollar of each of the different types of tax revenue, I think you might find that corporate tax is not the cheapest. I'm surprised the US doesn't lower it's corporate rate from 35%. This is quite high even by European standards: UK 30%, Netherlands 29.1%, Norway 28%, even Germany is only 25% (although with other taxes it's more like 40%). And Italy is only 33%, but then there are the extra bribes you have to pay so that the tax inspector doesn't report you for your mafia conenctions. One of the new EU countries, Estonia, actually does have 0% corporate tax rate, as long as profits remain in the company. If distributed there is a 28% tax.

Captain Capitalism said...

Well that's the irony, the US is supposedly this bastion of capitalism, but we have the highest corporate taxes in the world, bar Japan (made a post about it somewhere).

To answer your question though, yes corporate taxes have been accounting for less and less of the overall tax revenue for the US (as well the world). I think it's down to 10% total federal revenues, but don't quote me.

Additionally I would love to see how cost effective different taxes are, but haven't seen any data on it.

JTapp said...

Cap'n, you should do a post on Estonia (as mentioned by previous commenter). It's exactly the antithesis of Venezuela in policy and results.

Captain Capitalism said...

I would like to but the data is somewhat hard to come by. The OECD doesn't have a lot of data on the Baltics. Not to say the data doesn't exist, it does, I just don't have the time to track it down.

I will say that a theory of mine has been that the women of the former soviet bloc would probably be the best women in the world to date because;

1. They hate communism and like capitalism
2. Probably are educated
3. Aren't as spoiled as American women in terms of wealth and being brainwashed by soap operas and those damn chick magazines.

Yes, I could see it now, Natasha the chemical engineer that likes to play video games and loves making money...in lingerie of course.

doinkicarus said...

You might want to consider tax incidence - when everything is said-and-done, precious little of any tax, even the corporate tax, is actually "paid for" by corporations.

I'm sure you're aware of this - but it's always a good point to toss into the ring. Most studies indicate that somewhere near 70% of the tax burden falls upon the public - in their capacity as workers or as stakeholders in the corporations who allegedly "pay" the taxes.

Smaller dividends, lower wages, higher prices - these do not bode well for individuals.

gl said...

all of your assumptions on women from the former soviet states are correct. Western Europe is awash with them ... and they are not only just beneficial for the economy...

gl said...

In the absence of data on Estonia, I was going to suggest Ireland, but I now see you have already done this. One thing to bear in mind when looking at these Europeans "tigers" (and I include Ireland, Estonia, Latvia, Lithuania (but only just) and Slovakia in this group .. and maybe Czech Rep., but don't quote me), is that they are all very small countries, both in terms of populations (you're talking 4 million and under) and geography. History has shown that small countries are much easier places in which to implement economic policies and that the results, good or bad, are seen pretty quickly. This is, incidently, one of the reasons that countries such as Australia, the US and Canada have all adopted a federal model. Should also remember that Ireland has received huge dollops of cash from the European Commission, but that shouldn't take away from its genuine economic success. However, unfortunately this success hasn't affected the weather (grey, wet and miserable) or the people (essentially very friendly alcoholics who smoke way too much ... despite having to go outside the pub to do so). And their women are a little on the heavy side ... unlike Estonian women ..