Obama's plans to lower corporate tax from 35 to 28

[Berserker]

+1 Obama.

Lowering corporate tax was a big change that Republicans were strongly pushing for, so let's see if they support it in congress and pass it.

http://www.foxnews.com/politics/2012/02 ... form-plan/

[Thomas Fitzcharles]

Good Day, Serban.

It will depend on what gets attached to the bill. It also is not as low as the Rep. were looking for. It is however a brillant piece of politcal manuvering. Much the same as raiding SS and calling it a tax cut, with no corresponding reduction in spending. Again brillant as far as politics goes, not so good for the country.

Sincerely

Thomas

[Berserker]

I agree, it is a very good political move. I am actually amazed how Obama is outplaying Republicans on cutting taxes, which tratidionaly is what republicans stand for, but are now actually voting against.

You're right, it's not as low as republicans wanted (I think mitt wanted 25%, newt 12% or something like that). However, it is a 7% tax cut! That is a huge tax cut! Huge! I can't see how anyone would try to say that they won't vote because it's not enough. That would be foolish. You take what you can get now, and then you ask for more later. You don't wait until you can get the entire pie.

I'll comment again once I get to actually read what's in the bill besides the tax cut, as you're right, the riders on that bill will probably make or break this.

[MorGrendel]

Agree. There should never be this bipolar deadlock that we have. Change is good, and if it isn't, you change again so it is. Does it say how this will be done? Will it be a executive order?

[Berserker]

From what I understand, it's actually supposed to end up as a bill in congress. I don't think he actually can lower taxes via an executive order.

[ahrimen]

it actually will close a lot of "loop holes " i.e. deductions that will raise the corporate tax rate. it "s not political maneuvering it's called lying. side note: we have the highest corporate tax rat next to Japan.

[MorGrendel]

??? So does any of this exist or not ???
If it is a bill, is it written? What loopholes does it close?
Is it just a soundbite (rhetoric), that has been turned into "news"(pundantry)?
I can't find a plan or any real numbers, just speculation and conjecture.

Though, back to the speech, it was unclear to me whether the cut was for all business or just manufacturing. Also, corporations would be required to pay a minimum tax, but how much has not been specified.

So here's a spin, why is Japan sucessful with a tax rate of 30%, and what can we learn from them?

[Thomas Fitzcharles]

Good Day, Jeff.

I never though that Pres Obama was a bad politian but this really points out how far he is willing to go to get re elected. Not that most politian don't do this sacrfiing their principals I mean. Although he did hold true to vetoing the pipe line.
As far as know the bill has not been written yet. As far as Japan goes I believe it is protectionism, That allows them to reduce their imports and forgien companies proping while up thier industry that allows them to tax them higher. The average consumer does pay alot more than we do for the same product . But they as a people are willing to really sacrfies for what they believe is the good of thier country. must be a cultural thing

Sincerely

Thomas

[Berserker]

Yeah, the japanese are very different then us culturaly. Here's a cute example about just how different we are from them.

Gather a group of americans, separate them in groups of two and set them facing eachother in (one facing another one). Then draw a line in between on the ground. Then say, whoever gets the other guys to cross the line, will get 10$ (you have to have 2 guys on one side to win). If neither crosses over, no one gets anything. You have 2 minutes. Go.

The end result will almost always be that neither american will cross the line to the opposite person (unless the other person beats him into submission). That is because we are very competitive and will spend the time trying to convince the other person to come over to our side by various means, but won't give in to a disadvantage.

You do the same experiment with a group of Japanese and the result is that one person immediately will cross over to the other side, and they will split the money evenly. That's because in their culture they stress cooperation over everything else.

Of course, not being competitive like we are has its downsides (and many would argue that because we are so competitive is why we are the #1 country in the world), but it's just a very cute experiment to show the cultural differences between an american and a japanese person.

[ahrimen]

I wouldn't say japan is exactly successful, they also have a national dept that makes ours look like a car payment, somethings its not good to be in first.
all the articles I've read are on yahoo, and they try to spin it to make him look good. most of yahoo's articles are npr, very liberal. China has figured out that a low corporate tax rate brings in businesses. (and they are a communist country!)

[MorGrendel]

D'oh, you beat me to China.

However, I think that expanation of Japan's debt is a little askew. First, its not as large as ours, but like Greece, the real issue is how it compares to GDP. (US 100%, Japan 200%) Second, is in who holds the debt, China holds the US debt so the interest is paid out of the country, where as Japanese debt is held by the citiziens. This is good and bad, money doesn't leave the system, but you also can't raise taxes to fix it. Finally, unlike America, Japan refuses to print more money and devalue their currrency, so one american dollar is worth about 78 yen, versus 5 years ago when it was worth 125 yen. So they could pump more money into the system, and still have a strong currency.

As far as yahoo and the "news", Americans don't want facts, they want opinionated pundantry which they pass off as news. As far as I'm concerned, the president has the latitude to "play politics" as he has been elevated to the highest political office in the nation. He's the guy who has to where the bullet proof.

[Berserker]

Incidently, Japan is also going to be lowering their corporate taxes in April ;)

http://www.landwell.fr/japans-2011-supp ... eform.html

[MorGrendel]

Serban is this plan in writing anywhere, or is it just rhetoric and musings by Geihnert?

[Berserker]

You know all that I know. Don't bait me. It's not nice.

[MorGrendel]

Sorry, no attempt to trick you there, I just couldn't find anything concrete (Actually anything even Syrofoam). I didn't know if I needed to check out Obama.gov or something. I thought you picked a fox reference to cater to the republicans.