Monday, December 26, 2016

Corporate Effective Tax Rates Are Lower Than Middle Class Rates

During our presidential campaign, I watched  little of the candidates' speeches. I preferred reading later what the opposing parties said about each other, and then what moderates thought. However, I did tune in for a few moments to one of Trump's debates with Clinton.
What I caught was him saying that he wanted to lower corporate taxes to 15% from 30%. What puzzles me is the fact that after deducting tax breaks, subsidies and loopholes, the average corporate tax rate is already below 15%. So, if you lower the statutory corporate tax rate to 15%, how low will the effective tax rate be?
No wonder Wall Street stocks started going up after election night. And now, with a capital gains tax cut as a 'stocking stuffer', it seems that there really is a Santa Claus.
p.s.- Why not eliminate all of the subsidies, loopholes, tax breaks, etcetera and then lower the ridiculously high statutory tax rates and have a "one size fits all" real and effective tax rate?

In other words, corporations will later on be averaging far less than the current 12% real tax rates after deductions and corporate benefits. The people who own the corporations will also be paying decreased amounts. This is called corporate welfare.

Social welfare is what the lower economic groups receive.

The middle class finances this, and is one of the reasons why the middle class is shrinking. Meanwhile, the federal deficit and national debt balloon, thus weakening our economic system. Bush and Obama both did this to us. [ Obama extended the Bush corporate reductions as political payoff to the Republicans in order to implement his health care program.]