Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Trump Wants Tax Plan to Cut Corporate Rate to 15%

wsj.com

Post reply on HN
Print view View original

21–30 of 129 posts

Re: Trump Wants Tax Plan to Cut Corporate Rate to 15%

#21

Post by jrmurad »

djtriptych wrote: post #5
nodesocket wrote: post #2

The thing that most people fail to realize is that a lower corporate tax rate helps the overall enconomy and all Americans. Companies now suddenly have increased capital to spend on growth (hiring, R&D, and acquisitions). Additionally it boost earnings which will likely increase most people's retirement accounts and stock portfolios. Typical that I'm getting downvoted without any rebuttal.

Right because GE builds roads and funds public schools.

> Right because GE builds roads and funds public schools.

I'm going to assume sarcasm so: http://archive.fortune.com/2008/06/30/news/companies/ge_phil...

https://www.google.com/search?q=general+electric+charitable+...

Re: Trump Wants Tax Plan to Cut Corporate Rate to 15%

#22

Post by say_no_to_tde »

nodesocket wrote: post #2

The thing that most people fail to realize is that a lower corporate tax rate helps the overall enconomy and all Americans. Companies now suddenly have increased capital to spend on growth (hiring, R&D, and acquisitions). Additionally it boost earnings which will likely increase most people's retirement accounts and stock portfolios. Typical that I'm getting downvoted without any rebuttal.

Can you show any proof of this connection? If the goal is to make money then why would they spend more to expand with a lower tax rate than with a higher one?

If anything it would have the opposite affect since the R&D and the salary of new employees would be tax deductible.

Re: Trump Wants Tax Plan to Cut Corporate Rate to 15%

#24

Post by JKCalhoun »

abhv wrote: post #18

Lower corporate taxes can also help create structures which allow wealthier people to avoid taxes. For example, if you can create a structure in which all of your consulting income + capital-asset income goes into a C-corp, and you pay most of your own expenses through the C-corp (e.g., Trump tower home office), then you can keep most of your income taxed at only 15%. The C-corp holds it forever, and pays your expens…

Then that is what the AMT was designed for, no?

Re: Trump Wants Tax Plan to Cut Corporate Rate to 15%

#25

Post by giarc »

nodesocket wrote: post #2

The thing that most people fail to realize is that a lower corporate tax rate helps the overall enconomy and all Americans. Companies now suddenly have increased capital to spend on growth (hiring, R&D, and acquisitions). Additionally it boost earnings which will likely increase most people's retirement accounts and stock portfolios. Typical that I'm getting downvoted without any rebuttal.

There was a Planet Money podcast (or similar) recently that talked about tax cuts to small/medium size businesses. They looked at a few anecdotal cases and small cuts in taxes didn't result in enough money to hire someone or spend large amounts. They just simply weren't paying a ton in tax anyways, so a cut here or there wasn't a big change.

Re: Trump Wants Tax Plan to Cut Corporate Rate to 15%

#26

Post by maxerickson »

abhv wrote: post #18

Lower corporate taxes can also help create structures which allow wealthier people to avoid taxes. For example, if you can create a structure in which all of your consulting income + capital-asset income goes into a C-corp, and you pay most of your own expenses through the C-corp (e.g., Trump tower home office), then you can keep most of your income taxed at only 15%. The C-corp holds it forever, and pays your expens…

It would already be tax evasion to do what you propose. The beneficiary of the nice place to stay is supposed to pay taxes on that benefit.

Re: Trump Wants Tax Plan to Cut Corporate Rate to 15%

#27

Post by harryh »

abhv wrote: post #18

Lower corporate taxes can also help create structures which allow wealthier people to avoid taxes. For example, if you can create a structure in which all of your consulting income + capital-asset income goes into a C-corp, and you pay most of your own expenses through the C-corp (e.g., Trump tower home office), then you can keep most of your income taxed at only 15%. The C-corp holds it forever, and pays your expens…

The IRS is not stupid. It's perfectly capable of distinguishing a real business from a dummy business set up just to pay personal expenses. There are all kinds of rules about this sort of thing.

Re: Trump Wants Tax Plan to Cut Corporate Rate to 15%

#28

Post by JKCalhoun »

technotony wrote: post #8

I think the big thing about this is that it will lead more companies to bring capital back to the US from overseas where they are hoarding it. If they either spend it or distribute it to Americans that's likely good for the economy. It also improves the IRR for projects, which should lead to more investment. Hopefully, it works to get the economy going.

Greedy companies are greedy. Lowering to 15% won't magically make them good corporate citizens. The carrot and a really big stick are needed. I don't see this admin taking a stick to corporate America.

Re: Trump Wants Tax Plan to Cut Corporate Rate to 15%

#29

Post by harryh »

JKCalhoun wrote: post #24
abhv wrote: post #18

Lower corporate taxes can also help create structures which allow wealthier people to avoid taxes. For example, if you can create a structure in which all of your consulting income + capital-asset income goes into a C-corp, and you pay most of your own expenses through the C-corp (e.g., Trump tower home office), then you can keep most of your income taxed at only 15%. The C-corp holds it forever, and pays your expens…

Then that is what the AMT was designed for, no?

No. The AMT is completely unrelated to the issue abhv brings up.

The AMT is essentially a 2nd tax code for individual income taxes were fewer deductions but also lower rates. Individuals compute their personal taxes both ways and pay the higher of the two systems.

It's kind of a crazy system.

Re: Trump Wants Tax Plan to Cut Corporate Rate to 15%

#30

Post by nodesocket »

b0sk wrote: post #19
nodesocket wrote: post #2

The thing that most people fail to realize is that a lower corporate tax rate helps the overall enconomy and all Americans. Companies now suddenly have increased capital to spend on growth (hiring, R&D, and acquisitions). Additionally it boost earnings which will likely increase most people's retirement accounts and stock portfolios. Typical that I'm getting downvoted without any rebuttal.

Awesome. Let's cut it down to 0%. Why did you remove "snowflakes" from your post?

Because I want to follow HN etiquette and stay civilized even though on HN opposing views are immendiatly squashed and silieneced without proper debate.
Post reply on HN