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Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent
261–270 of 404 posts
Re: Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent
#262Earlier quoted context omitted.
Let me introduce you to the HELOC. Wealthy people do not take out mortgages. They borrow cash against their existing wealth. They then buy things with that. Then pay back against the loan. Writing it off too (as per tax law). The 'rich' have sold everyone a bill of goods how they are redoing the tax system for 'the people'. When the reality is they are writing a bunch more exemptions for themselves. You can do the sa…
> Let me introduce you to the HELOC Home equity loans are predominantly used by middle income households [0]. The rich can borrow against securities at the call money rate, currently 2% [1]. Much cheaper than borrowing against real estate [2]. The less rich swap it to a fixed rate for added security; the richer take the rate risk. (They likely have natural hedges.) The super rich seek to borrow at or close to the SOF…
point taken! I like to use the HELOC as it is something most people can do.
Re: Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent
#263Earlier quoted context omitted.
To add to that - they essentially appropriate taxes workers pay as their own taxes - as if they owned the work that worker put their life into. This is insanely evil.
Isn't an employment contract a worker entering an agreement to give work to an employer? Why is it evil for a corporation to own the work a worker is paid to do?
I am sorry, I probably didn't word it too well. My point is that corporation may say that the tax a worker pays is actually their tax and they use that to justify why they pay next to no tax themselves.
For example it is said that Amazon pays little tax in comparison to their profits and politicians use the argument that Amazon provide jobs and the workers pays tax, as if it was the Amazon who pays those taxes.
Shifting the blame on the victim. One reason that workers pay so much tax is because corporations don't. Corporations then enjoy multi billion profits and workers barely can get by.
Re: Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent
#264Earlier quoted context omitted.
Individual humans don’t employ large groups of people and don’t move forward the economy like a company does. I don’t understand why we want to equate rules for companies to rules for individuals? People say “it’s not fair”? Who’s going to employ people? The government can’t produce your salary, companies do that. Btw, many countries should regulate companies more IMO, but that’s not to say companies shouldn’t be enc…
But the example you're responding to does employ people. A surgeon will have to hire a whole host of employees to run his outpatient clinic. Or if she works in a hospital, an entire team will be built around her. Plus there is the fairness issue. Corporations are just groups of people working together. So why does a single surgeon not get to be treated as the economic growth engine she is, but two surgeons can incorp…
Because if the surgery/hospital operates at a loss (which they often do), they also get to carry forward those losses to deduct in future years. That's just notionally separate from the salary that the surgeon personally receives from the practice.
Re: Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent
#265I actually don't get why corporation should pay taxes. When the profit of the company is distributed, or paying the employees, the employees/shareholders will be taxed on that money.
What about the benefits that flow to foreign shareholders? You can’t effectively tax their capital gains.
Why should we tax foreigners for investing the in the U.S?
Re: Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent
#266Earlier quoted context omitted.
Why not just tax any sale of a stock or a divident payout in the country of the company, - not the country of owner of said stock? These operations have to go through country of company anyway...
They don’t. Suppose I incorporate a company in Grand Bahama “Shell” and fund it with $10,000. The company turns around and buys $10,000 worth of Apple stock. A year later, Apple has doubled and I sell my company Shell to my friend John. If John and I are both non-Americans then the US taxing authority will never hear about this transfer or be able to tax the capital gain.
So you and your friend John are foreigners investing foreign capital in the U.S. company Apple. Why do we want to use the tax system to discourage this?
Re: Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent
#267We have progressive taxation for individuals - why not for corporations? I don't have an army of accountants to avoid the corporate tax rate for my small business. So as a percentage I pay vastly more taxes than the multinationals. Why can't we have varying rates depending on the size of the business?* Bigger businesses have a bigger tax rate. This would also incentivize organizations to stay small. *Calculating the…
> We have progressive taxation for individuals - why not for corporations?
Because corporations are, by nature, arbitrarily divisible, so progressive taxation for corporations just encourages division of corporations into units that pay the minimum tax rate.
There are business forms that allow businesses (often, but not exclusively, small businesses) to avoid corporate taxes entirely (S corps and passthrough LLCs), whule also providing the benefits of incorporation compared to sole prop and partnership forms.
Re: Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent
#268Earlier quoted context omitted.
That doctor is spending real money on attending medical school, which pays professors. It is an equivalent.
Yes, the Doctor likely makes to much to even deduct the interest on student loans from their taxes where a company could in effect deduct both the interest and principal from those student loans as an expense. Deducting every cost associated with a job would be a huge tax benefit that simply doesn’t apply to people. It’s one of the ways that referring to tax burdens based on income as defined by the tax code is misle…
First of all you can deduct interest but the standard tax deduction already given usually accommodates a lot of that deduction. Companies can’t deduct principal payments either. There is a crazy amount of people including this article that have no concept of what taxes are. Taxes are not on gross income they are on profit. Calculating taxes on gross income, as this article says, would be outrageous. Take this articles reference that a deduction on stock paid to employees should not be given. The employees who receive that stock have to pay taxes on that money so if it was taxed it would then be essentially double taxed. Also this article states that accelerated depreciation does not encourage investment, and that is just bollocks. Anyone who works in finance would know that accelerated depreciation allows better cash flow on your investment and can make a project feasible or not feasible.
Re: Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent
#269Earlier quoted context omitted.
What would be the incentive for this? The whole point is for stakeholders to eventually get paid in a taxable event; either shareholders through a capital gains taxable event or employees through an income taxable event. Some tech companies are hoarding cash but I don't believe this is due to incentives created by taxation, although I could be mistaken.
> What would be the incentive for this? Greed, son, greed. That is why 5 people in the US have more money than the bottom 100 million. They didn't work hard to become that rich, they stole it by not paying wages, health care, benefits, or sharing the wealth. Because they do not have to, nothing prevents them from keeping it and paying low wages in an economy where the ONLY jobs are working for them. (Look at the most…
Actually behavior rebuts your theory.
Apple has paid hundreds of billions of dividends to shareholders the last few years. It's borrowed money to do it because it would be taxed if it repatriated funds to pay dividends with.
If the corporate tax rate was reduced to zero it would have zero reason to keep foreign profits offshore, it would just repatriate them and pay dividends directly.
Re: Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent
#270Earlier quoted context omitted.
> A lot of growing companies have US taxes that are quite low because they lose money for a long time while they're investing in growth. When they finally become profitable, they're allowed to roll forward those losses (within limits) to offset their profits. Human beings cannot do the equivalent. Spend the entirety of your 20s making very little money because you are investing in growth and then make $800k as an ort…
Paying tuition is more like an investment in a non-depreciating asset.
How is it non-depreciating? You can’t practice medicine forever.