Oklahoma Considering Ending Tax Breaks to Corporations

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Oklahoma Considering Ending Tax Breaks to Corporations

Postby Bruce Gourley » Mon Feb 22, 2010 11:39 am

In an acknowledgment of the fact that American tax dollars are used to subsidize corporate America, the state of Oklahoma is considering ending billions of $$ of corporate tax breaks.
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Re: Oklahoma Considering Ending Tax Breaks to Corporations

Postby ET » Mon Feb 22, 2010 1:38 pm

They really should rename "corporate taxes" to "hidden taxes paid by the consumer". Corporations don't pay taxes. Consumers do. Like any other expense, be it a computer or a paper clip, the cost of doing business is passed on to the consumer in the price of the products or passed on in reduced pay/bonuses to the employees or returns to the shareholder.

Good look with that, Oklahoma. Sounds like a good way to "ship jobs over state lines". There will be plenty of states waiting to offer tax breaks for those corporations to relocate.
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Re: Oklahoma Considering Ending Tax Breaks to Corporations

Postby Bruce Gourley » Mon Feb 22, 2010 2:25 pm

ET wrote:They really should rename "corporate taxes" to "hidden taxes paid by the consumer". Corporations don't pay taxes. Consumers do. Like any other expense, be it a computer or a paper clip, the cost of doing business is passed on to the consumer in the price of the products or passed on in reduced pay/bonuses to the employees or returns to the shareholder.

Good look with that, Oklahoma. Sounds like a good way to "ship jobs over state lines". There will be plenty of states waiting to offer tax breaks for those corporations to relocate.


Actually, corporate taxes affect the bottom lines of four classes of people: 1) investors, 2) executives, 3) workers, or 4) consumers. Any given corporation that actually pays taxes (which is only about 30% of corporations; most use shady accounting maneuvers to avoid paying taxes - and reward executives with the windfall) can choose whom among these four classes of people will receive less income (executive and/or investors and/or workers) or product value (consumers) in order to pay corporate taxes. Many, probably most, choose to favor executives, while some favor investors. The losers in most instances are probably workers (via lower wages), while consumers often come out fairly well (thanks to marketplace competition) except in monopolistic markets.
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Re: Oklahoma Considering Ending Tax Breaks to Corporations

Postby ET » Tue Feb 23, 2010 9:03 pm

Bruce Gourley wrote:Any given corporation that actually pays taxes (which is only about 30% of corporations; most use shady accounting maneuvers to avoid paying taxes - and reward executives with the windfall)....

You and others who talk about Bush turning "surpluses" into "deficits" should know all about "shady accounting maneuvers". It's like the pot calling the kettle black. The federal government is an unrivaled master of shady accounting, Bruce, from the use of social security surpluses for the last 40 years to mask the size of government overspending to the Senate health care bill that was going to tax us for 10 years and pay out benefits for 7 in order to perpetuate Obama's deception that health care reform would not add to the deficit. Every time you or one of your politically liberal brethren mention the "surpluses that Bush turned to deficits", you are condoning the use of "shady accounting tricks" in such an argument, for there never were any surpluses to begin with.

According to CNNmoney.com, 47% of households will pay no federal income tax in 2009. Due to the "planets aligning" this year and having expenses in the appropriate "government approved" categories, the wife and I paid $0 in personal income tax and even got the shock of our lives and got several multiples of a thousand back, even though our income is well above $75k/yr. Maybe one day someone here will explain to me the rationale for why such a system of benefits and penalties based on little more than the whims of politicians is considered a morally just and economically sound way to fund a government that supposedly seeks to treat all people equally. At least for 2009, I suppose we could get 47% of American households to say it's alright with them.

If you are so concerned about the (supposedly) shady accounting used by (supposedly) so many corporations to avoid paying taxes, then I suggest you join with those of us who are ready to abolish the income tax and corporate taxation and move to a national sales tax or flat tax or both individuals and corporations. No deductions (or very, very, very few) and no IRS required. No need for shady accounting. However, your liberal/lefist/statist friends in Congress shall fight it tooth and nail along with legions of tax lawyers and accountants who would see their professions largely evaporate or numbers greatly reduced. Without an income tax through which politicians can grant favors, can you imagine politicians of any flavor giving up THAT MUCH POWER to buy votes and attempt to socially engineer society to meet their dreams?
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