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Alphabet Q1 2018 Earnings [pdf]

abc.xyz

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Re: Alphabet Q1 2018 Earnings [pdf]

#61

Post by rifung »

l1ambda wrote: post #35
aphextron wrote: post #10

>Effective tax rate 11% Absolutely obscene. Literally their entire Net Income increase from $5.4b to $9.4b is due to a tax cut from 20%. We will be paying for this Republican tax policy for the rest of our lives.

The US corporate tax rate is now more in line with the OECD average: https://taxfoundation.org/us-corporate-income-tax-more-compe...

True but statutory tax rate matters less than effective tax rate.

As a proportion of GDP the US was already lower than average.

https://www.npr.org/2017/08/07/541797699/fact-check-does-the...

I don't know enough to argue for one side or the other, but I think the provided link could be misleading (not necessarily intentionally)

Re: Alphabet Q1 2018 Earnings [pdf]

#63

Post by kgwgk »

obilgic wrote: post #20

eps doubles and shares are down...

EPS doubles (actually grows 72%) due to some one-time adjustments.

Revenue is up 26% year-over-year. Operating income is up 6.6% year-over-year.

The stock is up ~25% over the last 12 months, by the way.

Re: Alphabet Q1 2018 Earnings [pdf]

#64

Post by Clanan »

rayiner wrote: post #32
aphextron wrote: post #10

>Effective tax rate 11% Absolutely obscene. Literally their entire Net Income increase from $5.4b to $9.4b is due to a tax cut from 20%. We will be paying for this Republican tax policy for the rest of our lives.

Corporate tax raises relatively little revenue, and most Western European countries don’t rely on it much because its easier to tax individuals. If we don’t want to be getting more in debt we should raise taxes on middle class people to the level of say Germany. In a state like California, our taxes on rich people and corporations are already about as high as in Germany, its our taxes on people making sub-200k that r…

> If we don’t want to be getting more in debt we should raise taxes on middle class people

Or... cut spending.

Re: Alphabet Q1 2018 Earnings [pdf]

#65

Post by briandear »

aphextron wrote: post #10

>Effective tax rate 11% Absolutely obscene. Literally their entire Net Income increase from $5.4b to $9.4b is due to a tax cut from 20%. We will be paying for this Republican tax policy for the rest of our lives.

How? Google’s money doesn’t belong to you or the government. Taxes shouldn’t be confiscatory. Is Google using more government services than a less profitable company or a similar size? Of course not. So why should they pay more? How about the millions in taxes paid by their employees? Or the millions in sales taxes paid by employees, or the millions in property taxes paid by employees? Or all of the businesses who sell products to employees? Or the capital gains realized by shareholders that are then used to invest in other businesses or buy products and services?

Even if Google paid 0%, they are a massive net economic gain for the country.

Remember, corporations don’t pay taxes, people do. If Google paid more, prices for their services would rise and that would then increase customer acquisition costs for businesses which would result in lower profits for the businesses which means they hire fewer people and thus lower wages and higher unemployment which results in even fewer taxes collected and then, before long, you have the economy of France. Google would then lose business and contract in size and then they would pay even less in taxes.

The Laffer Curve is a real thing.

Re: Alphabet Q1 2018 Earnings [pdf]

#66

Post by tedunangst »

brink wrote: post #46
aphextron wrote: post #10

>Effective tax rate 11% Absolutely obscene. Literally their entire Net Income increase from $5.4b to $9.4b is due to a tax cut from 20%. We will be paying for this Republican tax policy for the rest of our lives.

Can someone without bias ELI5 on why I pay ~30% in taxes, but Alphabet pays 11%?

I'd start by revisiting the assumption that individual and corporate tax rates should be similar, or even comparable.

Re: Alphabet Q1 2018 Earnings [pdf]

#67

Post by pg_bot »

aphextron wrote: post #10

>Effective tax rate 11% Absolutely obscene. Literally their entire Net Income increase from $5.4b to $9.4b is due to a tax cut from 20%. We will be paying for this Republican tax policy for the rest of our lives.

I know it's politically unpopular, but most economists across the political spectrum believe that corporate taxes should be eliminated entirely.[0] It's more effective to tax people directly as the corporate tax is extremely volatile and it takes away money that could be productively reinvested.

[0] https://www.npr.org/sections/money/2012/07/18/156928675/epis...

Re: Alphabet Q1 2018 Earnings [pdf]

#68

Post by bearjaws »

rayiner wrote: post #32
aphextron wrote: post #10

>Effective tax rate 11% Absolutely obscene. Literally their entire Net Income increase from $5.4b to $9.4b is due to a tax cut from 20%. We will be paying for this Republican tax policy for the rest of our lives.

Corporate tax raises relatively little revenue, and most Western European countries don’t rely on it much because its easier to tax individuals. If we don’t want to be getting more in debt we should raise taxes on middle class people to the level of say Germany. In a state like California, our taxes on rich people and corporations are already about as high as in Germany, its our taxes on people making sub-200k that r…

It raises very little money due to how many loop holes are deliberately left in our tax code.

Adding a tax to the middle class without a corresponding raise in income will result in economic downturn, especially since we are increasing interest rates on an already debt-burdened middle class.

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