Earlier quoted context omitted.
The corporate tax rate has been reduced to something like 20%. Most companies in the US pay much less than that. The state is already subsidizing a lot for big corporations. Companies are nothing but made up of people. The irony is at one time or another these same people would have wanted the exact same benefits for themselves but they don’t like extending those same benefits to others. If they can’t act in the larg…
If they can’t act in the larger national interest on a few of these occasions then they won’t have a population to sell to. Apple sells globally, should Apple also pay for the welfare of the countries where it sells its product? The corporate tax rate has been reduced to something like 20%. Most companies in the US pay much less than that. The state is already subsidizing a lot for big corporations. Some part of whic…
Yes. And they do in countries which charge VAT. They should arguably be taxed on the profits they make in the territories they sell in, but that is much harder to do in practice without international cooperation.
> Some part of which flows to investors who purchase securities. Capital gains and dividends are taxed.
Capital gains are only taxed when they are realized. E.g. Warren Buffett's Berkshire Hathaway hasn't paid a dime in taxes on the 15.4 billion dollar capital gains on its 16.7 billion dollar stake in Coca Cola (a position he initiated in 1987). Since Buffett has indicated he isn't planning on selling Coca Cola ever, those capital gains won't ever be taxed.
> Companies can't earn record profits without government running deficit (by healthcare/infra expenditure) and without people running out of savings (by spending on the goods and services being produced)
Of course they can: by becoming more efficient or by growing GDP.
> Part of the value produced will be taxed in the US while the individuals and governments all over the world run out of saving and run into deficits respectively. All that flows to the US. Stopping this is much worse for the US.
Nonsense. If you had looked at the OECD government deficit data [1], you would have known that the US is running one of the biggest deficits in terms of % of GDP (4.94% in 2016 vs 1.546% for the EU as a whole, or a surplus of 1% for Germany). Similarly, personal savings are 2.8% in the US [2] vs 10% in the EU [3] or 50% in Japan [4].
Of course, this has little to do with the balance of trade, as you seem to be thinking. The US runs a trade deficit: it imports more than it exports. This is offset by capital inflows from abroad, meaning that a bigger and bigger share of the ownership of productive assets are being owned by foreigners. Returns on those assets will accrue to foreign investors.
[1] https://data.oecd.org/gga/general-government-deficit.htm
[2] https://tradingeconomics.com/united-states/indicators