No wonder Joe the Plumber Is worried About Taxes

The way it works today is that CEOs gets paid way over their worth even when they run the company into the ground (bankruptcy), and they walk away with golden parachutes.

Bankers to Reap $70B Despite Crash
Posted Oct 18, 08 7:05 PM CDT in Business
(Newser) " Wall Street’s top banks are set to pay their financial workers more than $70 billion in salary and bonuses this year"a tenth of the $700 billion in taxpayer money committed to the bailout"despite the huge drops in share price and cash shortages they are experiencing, the Guardian reports. Morgan Stanley, for example, will dole out $10.7 billion, which at one point last week was more than the bank’s market value.

One bank source said that while the payouts would seem high to a “normal person,” the bonuses are all performance-based.

But critics say firms with shaky capital positions shouldn’t dump billions into bonus pools. The CEO and top traders at Germany’s Deutsche Bank, for example, are waving millions in payouts. “It may well be that by the end of the year the banks start to review the situation,” said one source.

How in the world do you make $200,000 if you can't even read numbers correctly?

We wouldn't want you to have to pay the same 43% that those making 95,000 pay on their last $15,000 of income. (28% income tax + 15.3 FICA)

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It is true that Queen Bees everywhere have tolerated higher taxes as a consequence of their success and most don't complain about that. But it has to be profitable for the Queen Bee to hire that line cook or any other employee. Raise the cost of doing business, including taxes, a great deal less profitable, and Queen Bee may decide it just isn't worth it to stay open the extra hours or do the additional investment or take on more risk; she scales back or doesn't expand and the line cook's job is eliminated or is never created.

You act as if the Queen Bee pays for the business 0ut of the $100,000. That is what she makes AFTER she pays for the business. As was pointed out, making $85,000 instead of $90,000 after taxes doesn't raise the costs of her business because that is a separate item. Raise the cost of doing business and her profit goes down so she pays less taxes.

WASHINGTON, Mar 18, 2008 - A new study from the Tax Foundation, a nonpartisan tax research group in Washington, shows that most American states tax job providers at a higher rate than any other country in the developed world.

"This is startling news for America's businesses and workers," said Tax Foundation president Scott Hodge, the study's author. "Tax competition for jobs and investment is fierce, and the U.S. continues to fall further and further behind. Our states should be the world's leaders in many things, but high taxation should not be one of them. The high federal corporate tax rate is literally crushing states' competitive abilities. That means fewer jobs for American workers."

Counting the federal rate alone, the U.S. has the world's highest corporate tax rate, but including average sub-national rates (federal plus state in the U.S.), Japan edges out the U.S. for the highest-tax location (see table).

This new study breaks the tax down state-by-state, adding each state's corporate tax rate to the federal corporate tax rate. The results show that 24 states impose, when combined with the federal rate, a higher business tax rate than in any other nation. In fact:

24 states have a combined corporate tax rate higher than top-ranked Japan.
32 states have a combined corporate tax rate higher than third-ranked Germany.
46 states have a combined corporate tax rate higher than fourth-ranked Canada.
All 50 states have a combined corporate tax rate higher than fifth-ranked France.
http://www.taxfoundation.org/publications/show/23015.html

Study says most corporations pay no U.S. income taxes
Tue Aug 12, 2008 12:54pm EDT
WASHINGTON (Reuters) - Most U.S. and foreign corporations doing business in the United States avoid paying any federal income taxes, despite trillions of dollars worth of sales, a government study released on Tuesday said.

The Government Accountability Office said 72 percent of all foreign corporations and about 57 percent of U.S. companies doing business in the United States paid no federal income taxes for at least one year between 1998 and 2005.

Any corporation that pays no taxes at all didn't make any money or paid out all profits in salaries--not an uncommon practice in small businesses--but you can be sure that the tax man taxed it there. The fact is that combining the federal taxes with state taxes, and you already have American business at a huge disadvantage. But some of you think it should be taxed even more.

Study says most corporations pay no U.S. income taxes
Tue Aug 12, 2008 12:54pm EDT

WASHINGTON (Reuters) - Most U.S. and foreign corporations doing business in the United States avoid paying any federal income taxes, despite trillions of dollars worth of sales, a government study released on Tuesday said.

The Government Accountability Office said 72 percent of all foreign corporations and about 57 percent of U.S. companies doing business in the United States paid no federal income taxes for at least one year between 1998 and 2005.

More than half of foreign companies and about 42 percent of U.S. companies paid no U.S. income taxes for two or more years in that period, the report said.

During that time corporate sales in the United States totaled $2.5 trillion, according to Democratic Sens. Carl Levin of Michigan and Byron Dorgan of North Dakota, who requested the GAO study.

The report did not name any companies. The GAO said corporations escaped paying federal income taxes for a variety of reasons including operating losses, tax credits and an ability to use transactions within the company to shift income to low tax countries.

Most American businesses are the highest taxed in the world. Anybody, and I do mean ANYBODY who thinks that Barack Obama will be able to fund a trillion dollars in new spending plus give a tax cut to 95% of working Americans by taxing those earning over $250,000 more without destroying American business simply needs to have his/her head examined. Or for Pete's sake, at least stop drinking the kool-ade.

What Fox doesn't know and see is that many American corporations pay no income tax.