World News Thread & Breaking News!!

[petty officer1]

I actually think US corporate Tax rate is fairly high, compared to more business friendly countries such as Singapore (17% flat corporate rate) The major reasons corporations are not paying enough share of their tax (aka google). Is due to the amazing amount of loopholes such as subsidiaries and tax deductions.

Simplifying tax structure is the key to solve the budget problem.

 

[solarz]

The incomen tax is not as you portray it. Someone earning millions in income pays far more than the 30%. In fact, the top income earners pay far more than their fair share. The top 10% earners already are paying in excess (I believe0 of 75% of all taxes. Almost 50% on the low end pay NO taxes.

People who have investments pay an additional 15% on earnings due to investments. That is where the 15% comes from.

On their salary they pay more.

So, many wealthy people make sure that they do not pay themselves a salary, but take money from returns on their investments. This is understandable. They are risking whatever they put into those investments...they could lose substantially more than they gain, particularly in this economy.

I like Cain's 9-9-9 plan. It is fair. 9% income, 9% corporate and 9% sales (only on new items). No loopholes, and it would take a 2/3rds majority in Congress to change any of those rates.

Absolutely fair. You earn more or buy more and you pay more. Corporate taxes would be much lower...but would apply across the board with no loopholes.

Anyhow, that is just my opinion. The income tax though is not a 30% for 60,000 and 15% for millionaires. it's the capital gains tax that is the 15%.

Yes, I understand that the 15% is from capital gain, but the fact is, the very wealthy make most of their money from capital gains.

I find it funny (in a sad way) how some right-wing media are claiming that Obama is trying to promote "class-warfare" with the "Buffett Tax". Conveniently, they have forgotten that

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. Compare this with a reduction of a mere 2% in income tax rate for middle-class families. The same people who got a big tax break from Bush is now crying foul over the (albeit remote) possibility of losing that break.

The idea of taxing capital gains lower is to encourage investments. In other words, it's a subsidy in everything but name. Like all subsidies, it's a privilege, not a right, and in times where years of subsidized investments have produced little positive results for the economy, it is time to rethink that subsidy.

 

[delft]

Would the 9-9-9 plan bring in enough money to operate the US government?

 

[Finn McCool]

On the subject of the "Iranian conspiracy", well, it all smells to high heaven. The Saudis and the Iranians are maneuvering against each other across the Middle East right now and, with the recent unrest in Shiite areas of the Kingdom, Iran is probably trying very hard to turn the geopolitical situation to its advantage. The biggest problem for me is that I don't really believe that the Iranians would choose to do such a bold attack. Killing Americans in the capital. The chance they would be caught was high. If they were successful the chance of war would be very high as well. And while Mexican drug cartels are very bad people, they too have a history of avoiding the deaths of civilians in the United States. It's bad for business. However, the Zetas are the craziest of the bunch, and they're losing the war against their rivals, the Sinaloa cartels and a few others. I strongly suspect, with reason, that the US government has made a secret defacto alliance with the Sinaloa cartel to destroy the Zetas, because the Zetas pose a bigger threat to the security of Mexico. Perhaps Commandante Z-40 decided that he would even the odds and get a state backer of his own, he's losing the war fast anyway.

EDIT: Upon re-reading the latest news, it doesn't seem that the Iranian guy who was arrested ever actually made contact with a Mexican drug cartel, rather, he talked to a DEA informant who is a figure in the whole narco-world in Mexico.

Fast and Furious is only the beginning if you really want to look into just how dirty and dishonest the "war on drugs" is and has been for a long time. I hope someone pulls on that string and reveals it all.

 

[Quickie]

Would the 9-9-9 plan bring in enough money to operate the US government?

Not forgetting that, after 2 expensive wars which have not seen their end yet, they're now setting their sight on a trade war with their very biggest banker.

 

[Jeff Head]

Would the 9-9-9 plan bring in enough money to operate the US government?

Cain says his economic advisors say it will and that it, of itself is revenue neutral...but that its impact will spur growth and lead to higher revenue as a result of more business.

I tend to agree with him.

Others, not surprisingly especially some GOP candidate and the Obama administration who would run against Cain indicate that their economic advisors disagree.

That's what elections are for.

 

[bd popeye]

Herman Cain..my new hero!

 

[Jeff Head]

Herman Cain..my new hero!

OohRah, popeye! Oh ya!

 

[Finn McCool]

Cain says his economic advisors say it will and that it, of itself is revenue neutral...but that its impact will spur growth and lead to higher revenue as a result of more business.

I tend to agree with him.

Others, not surprisingly especially some GOP candidate and the Obama administration who would run against Cain indicate that their economic advisors disagree.

That's what elections are for.

Well it's really a matter of calculating where America is on the Laffer curve. I don't think there's anyway to do that. But if you could, you'd know if taxes should be raised or lowered to maximize revenue.

 

[Centrist]

I applaud him for making taxation much simpler. That's the attraction of a flat tax...simplicity. The problem is, he would remove the estate tax, which I am flatly opposed to. I favor a very very high estate tax because I believe it is morally wrong for someone who is rich and successful to give their children a free ride. Everyone should have to fight their way up and achieve success. Republicans seem to think that only certain bloodlines should be successful, this is un-american if you ask me.

His plan would also eliminate capital gains taxes. Since many of america's wealthiest people make most of their income from capital gains, this would give them a free ride. Needless to say, I oppose eliminating the tax entirely.

Nonetheless, like I said, the simplicity of a flat tax is nice. There are benefits to not having tax brackets. I could stomach his plan if it included a dramatic increase in the estate tax.