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Alphabet Q1 2018 Earnings [pdf]

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Re: Alphabet Q1 2018 Earnings [pdf]

#81

Post by dlp211 »

votepaunchy wrote: post #37
aphextron wrote: post #29

Earlier quoted context omitted.

It's not just corporate rates. Doubling the standard deduction is the most reckless thing that has ever been done to our federal tax code for individuals. The fact that I am going to pay an effective 15% this year on a $100k salary is absolutely insane.

Doubled the standard deduction but eliminated exemptions but doubled the child tax credit (with much higher phase-out).

But didn't make the child tax credit fully refundable which hurts middle class families. I on the other hand am going to make out like a bandit with an approximate $6k tax cut, but I don't really need it. I'm going to dump it into the market and forget about it for 20 years.

Re: Alphabet Q1 2018 Earnings [pdf]

#82

Post by vibrio »

briandear wrote: post #65
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 se…

"The Laffer Curve is a real thing." there are some assumptions about where on that curve we are.

The balance sheets of most of these companies were at record levels before the tax cuts, and most of the tax benefits will go into share buy backs, which will not do that much to stimulate the weakest parts of this economy.

Re: Alphabet Q1 2018 Earnings [pdf]

#83

Post by bearjaws »

chrischen wrote: post #60
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 don’t get the whole issue with low coporate taxes. I get why people should be taxed so as to reduce consumption and increase production, but a coporation is not a person, so why hinder their ability to further productivity and economic output? It’s redirecting money earned that could be used to further economic activity and redirecting it to the hands of some highly corruptable bureaucrat in public office given the…

It simply doesn't work that way, maybe for a small business they reinvest all or most of their earnings (Amazon being the exception).

For someone like Apple or Google, they have made it very clear their policy is to hoard as much money as possible (and as much of it offshore as possible too). This is a main reason why a corporation SHOULD be taxed, you only get taxed on PROFIT as a corporation. If a company was truly increasing their "productivity" and "output" they would have much less profit quarter over quarter.

As far as the government being owned by corporations, that already happens because we allow them to directly fund politicians. With or without taxes.

Re: Alphabet Q1 2018 Earnings [pdf]

#84

Post by briandear »

aphextron wrote: post #29
skrowl wrote: post #24

Earlier quoted context omitted.

Maybe check Amazon's tax rate before "this Republican tax policy" went into effect prior to blaming low corporate tax rates on one party. If you think lobbyist-driven tax policy in America is ONLY done by Republicans, you should probably expand your reading beyond CNN / WashPo. You're right that the federal government that creates the tax policy is for sale, but it's not just the Republicans.

It's not just corporate rates. Doubling the standard deduction is the most reckless thing that has ever been done to our federal tax code for individuals. The fact that I am going to pay an effective 15% this year on a $100k salary is absolutely insane.

So send a check to the Treasury. Nobody is stopping you. You could even organize a bunch of like minded people to send checks to the Treasury.

I needed the tax cut. If you don’t, you don’t have to keep it. I am a better steward of my money than the government, especially when it comes to saving and investing for my family’s future.

Re: Alphabet Q1 2018 Earnings [pdf]

#85

Post by Rebelgecko »

dindumuffin wrote: post #78
aphextron wrote: post #29

Earlier quoted context omitted.

It's not just corporate rates. Doubling the standard deduction is the most reckless thing that has ever been done to our federal tax code for individuals. The fact that I am going to pay an effective 15% this year on a $100k salary is absolutely insane.

How can you have a 15% effective tax rate yet benefit from the standard deduction? Your taxable income after the standard deduction is $88,000 after which your state plus federal tax rate is applied to. To have an effect tax rate of 15% on $100,000 you would have to pay only $15,000 in taxes on $88,000 of taxable income. That would mean your state plus federal tax rate is 15000/88000 = 17%, which does not exist anywh…

Could be lying, or maybe they contribute 12% to their 401k, or pay for daycare with pretax dollars, or have an HSA and an IRA, etc. There's lots of causes for taxable income ≠ salary- there's no need to make baseless accusations

Re: Alphabet Q1 2018 Earnings [pdf]

#86

Post by rayiner »

bearjaws wrote: post #68
rayiner wrote: post #32

Earlier quoted context omitted.

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.

It's not a "loop hole" if its a purposeful design. Countries make the deliberate decision to tax individuals instead of corporations because its easier (and related decisions like taxing capital gains at lower rates). Even countries like Sweden focus taxation on the middle class, with lower corporate taxes and a much less progressive tax structure than the U.S., because it's easier. It's a deliberate fiscal policy.

Re: Alphabet Q1 2018 Earnings [pdf]

#87

Post by mkempe »

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.

This comment is factually wrong (as pointed out by other responses) and evinces sadly vile sentiments.

The US corporate tax rate had grown until 2017 to be much higher than it is in Western European countries (and remains relatively high). If you, like many anti-Republicans, think that Sweden is an interesting model -- please note that Swedish corporate taxes are much lower than in the US. [1]

As for the notion that profits, or their increase, are "obscene" -- this is the essence of the anti-capitalist mentality.

[1] https://taxfoundation.org/how-scandinavian-countries-pay-the...

Re: Alphabet Q1 2018 Earnings [pdf]

#88

Post by throw2016 »

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...

Yet the US lingers at the bottom of the OECD in terms of key criteria like healthcare, education, poverty, mobility. [1]

The bulk of OECD have far stronger social indicators and spends. Perhaps a tax cut before achieving higher ranks on key criteria is misplaced.

[1] http://www.sgi-network.org/docs/studies/SGI11_Social_Justice...

Re: Alphabet Q1 2018 Earnings [pdf]

#89

Post by aphextron »

dindumuffin wrote: post #78
aphextron wrote: post #29

Earlier quoted context omitted.

It's not just corporate rates. Doubling the standard deduction is the most reckless thing that has ever been done to our federal tax code for individuals. The fact that I am going to pay an effective 15% this year on a $100k salary is absolutely insane.

How can you have a 15% effective tax rate yet benefit from the standard deduction? Your taxable income after the standard deduction is $88,000 after which your state plus federal tax rate is applied to. To have an effect tax rate of 15% on $100,000 you would have to pay only $15,000 in taxes on $88,000 of taxable income. That would mean your state plus federal tax rate is 15000/88000 = 17%, which does not exist anywh…

>You are lying.

No, I'm not. Do the calculations yourself.

https://www.calcxml.com/calculators/trump-tax-reform-calcula...

I get that it's hard to believe at first how insane this new bill is. I was in absolute disbelief when I first did the numbers.

A single person earning $100,000, claiming the standard deduction, will have a total federal tax liability of $15,410 for 2018, or an effective rate of 15.4%.

Re: Alphabet Q1 2018 Earnings [pdf]

#90

Post by bearjaws »

pg_bot wrote: post #67
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...

Except the last tax holiday on corporations resulted in them reinvesting almost all of it into stock buy backs and dividends.

The myth that lowering taxes on corporations results in economic growth needs to die.

https://www.nytimes.com/2008/06/24/business/worldbusiness/24...

"A 2007 academic study by Roy Clemons, then a graduate student at Texas A&M University, that was based on earlier data, found that the tax break did not stimulate investment in the United States economy and that repatriated money was often used for disallowed purposes, like stock repurchases."

https://fas.org/sgp/crs/misc/R40178.pdf

"While empirical evidence is clear that this provision resulted in a significant increase in repatriated earnings, empirical evidence is unable to show a corresponding increase in domestic investment or employment"

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