Why should the corporate tax rate exist?

LMAOROG, No excise tax pays for US roads and bridges 100%, the money ALWAYS comes from the general funds. Not art the federal, state or local level do they collect enough in the gas tax

"Federal excise tax revenues—collected mostly from sales of motor fuel, airline tickets, tobacco, alcohol, and health-related goods and services—totaled nearly $100 billion in 2019, or 2.9 percent of total federal tax receipts."

https://www.taxpolicycenter.org/bri...s, and how much,of total federal tax receipts.

• Federal and state governments levy gas taxes to help pay for road infrastructure projects.
• The average state gas tax is about 31 cents a gallon, though they range from less than 9 cents to nearly 59 cents a gallon.
• Gas taxes have not kept pace with road maintenance costs, leading some states to legislate increases tied to inflation and many to adopt variable rates.

Unfortunately, the revenue raised from gas taxes has failed to keep up with rising infrastructure costs and inflation

While the federal gas tax has been stuck at 18.4 cents a gallon since 1993, the increasing squeeze on transportation budgets has led many states to raise the gas tax in recent years

However, gas taxes raised at the state and federal levels are increasingly falling short of what’s needed to maintain and expand the country’s roads. In 2021, the Congressional Budget Office estimated a cumulative shortfall of $195 billion for the Federal Highway Fund's highway and mass transit spending through 2031.
https://www.investopedia.com/gas-taxes-and-what-you-need-to-know-5118477

 

MOSTLY = not 100%

That's just gas/fuel taxes commericial vehicles especially trucks pay other excise taxes like on tires and permits.

Did you have a point here? Corporations pay LOTS of taxes beyond the corporate income tax.

 

Yes, and Corp taxes (like the richest of the rich) tax "burden" has fallen dramatically the past 40+ years, as their "share" of income, and Corp profits have skyrocketed

Corporate share of federal tax revenue has dropped by two-thirds in 60 years — from 32% in 1952 to 10% in 2013.

General Electric, Boeing, Verizon and 23 other profitable Fortune 500 firms paid no federal income taxes from 2008 to 2012.

288 big and profitable Fortune 500 corporations paid an average effective federal tax rate of just 19.4% from 2008 to 2012.

• Profitable corporations paid U.S. income taxes amounting to just 12.6% of worldwide income in 2010.
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• U.S. corporations dodge $90 billion a year in income taxes by shifting profits to subsidiaries — often no more than post office boxes — in tax havens.

https://americansfortaxfairness.org...rate share of federal tax,1952 to 10% in 2013.

 

How much do you think they should pay in corporate income taxes, which YOU ultimately pay anyway?

How much more capital do you want to take away from business and the markets?

Federal Corporate Tax Revenue and All Federal Tax Collections Headed for Another Record High

After corporate tax revenue came in at a record high of $372 billion in fiscal year 2021, we have been eagerly awaiting the forecast for fiscal year 2022, which the Congressional Budget Office (CBO) normally publishes in January but now plans for the week of May 23rd. The White House has included a forecast in its annual budget, predicting corporate tax revenue will grow just 2.9 percent this fiscal year, less than the current rate of inflation, to $383 billion, which would nonetheless be another record high in nominal terms.
https://taxfoundation.org/corporate-tax-revenue-federal-tax-collections/

And yes companies also LOSE money and have no income to tax, and sometimes those loses are written off against future profits so the next year the company shows a profit but the loss carryover wipes out any tax on it. Companies finances don't run on a government schedule. Or they may have invested a huge sum and can carry over some of that jobs creating new factory construction cost on the next years return. Or they are depreciating a HUGE new machine or many huge new machines in an upgrade and that depreciates over several years.

 

Record revenues? LMAOROG, You do know economists measure via GDP, and no it's not record. Diaper Don, Dubya and Ronnie's tax cuts which benefitted the richest by over 80%, cost the treasury right? AS all 3 upped spending (deficits)

In summary, 82% of the corporate income tax burden is distributed to capital income and 18% is distributed to labor income (wages)

https://home.treasury.gov/system/files/131/TP-5.pdf


A study by Eric Ohrn of Grinnell College shows that the five highest-paid executives at the studied firms reaped between 17 and 25 percent of some recent corporate income tax cuts – including changes in depreciation rules and subsidies for domestic production.



Economists at the Federal Reserve Board and the congressional Joint Committee on Taxation found the highest-paid 1 percent of employees reaped 40 percent of the benefits of a corporate tax cut

An additional 19 percent of the benefits of that tax cut went to the highest paid 2 percent to 10 percent of employees. A tall stack of other papers report similar results: While firms share some excess returns with workers, the vast majority of that income goes to high-income employees.
https://www.brookings.edu/research/rethinking-the-incidence-of-the-corporate-income-tax/

 

You do know economist measure by actual dollars. Government has not claim on some certain amount of GDP. The best economy expands beyond what increases the government needs to operate and the percentage of both personal and corporate taxes to GDP falls and that extra capital gets invested in the economy instead of the government trying to figure out how to spend it on give aways.

Correlation does not prove causation nor is it proper use of the tax code to determine what a company pays anyone and to force them to do as the government dictates.

 

No, economists measure it via GDP, if strictly dollars, no way to adjust for more workers or inflation. It's the way economists can measure countries economies vs taxes. How well does EU compare to US. Or US to Japan, etc

.https://www.investopedia.com/terms/t/tax-to-gdp-ratio.asp

Your libertarian BS aside, Corps pay taxes on profits.


The most widespread measurement of national economic growth is gross domestic product, or GDP


Tax revenue is defined as the revenues collected from taxes on income and profits, social security contributions, taxes levied on goods and services, payroll taxes, taxes on the ownership and transfer of property, and other taxes. Total tax revenue as a percentage of GDP indicates the share of a country's output that is collected by the government through taxes. It can be regarded as one measure of the degree to which the government controls the economy's resources. The tax burden is measured by taking the total tax revenues received as a percentage of GDP. This indicator relates to government as a whole (all government levels) and is measured in million USD and percentage of GDP.

https://data.oecd.org/tax/tax-revenue.htm

The visualization shows the evolution of tax revenues, as a share of national income, for a selection of early-industrialized countries.

https://ourworldindata.org/taxation

 

The major problem with any person or business making enormous amounts of money is the economic and political power it connotes. Companies that make hundreds of dollars net profit per second are off the scale in proportion to influence in a (supposedly) representative government. Rather, we can predict who is 'represented'.

 

But CONServatives don't care that their ideology/economic theory leads to what most third world nations look like, small class of very rich, small class of middle class and huge class of working poor.

"Free hand" of the market and all, who cares about manipulation or monopiles.