Thread: The Trump Fever Never Breaks

It's why they left the country to begin with, so if you fix corporate and business tax rate, they'll come back. Either that or pass the FairTax. The status quo isn't going to solve the problem.

Truly, are we sure or was taxes just something they put out there so the American people wouldn't turn completely against them.

Remember, initially, it was all those overpriced union workers.

Again, how much does all the transporting of this merchandise eat into any savings they get from taxes.

Can't taxes be reduced by expansion anyway? Most people when they begin to pay too much taxes, they look around for something to invest in to cut those taxes.

I'm not for any business tax cuts until the American worker gets a tax cut, and unless they agree to not hire any foreign workers.

Unless that is part of the agreement, it just another hit for American workers.

Also, knowing our government, how many foreign companies will be coming into this country to take advantage of it. They will certainly bring their own workers.

Again, I'm not anti-business, but I don't trust them.

No, it wasn't the unions. Labor is 10% of the cost of a vehicle made in the US. When these bad trade deals were made our corporate tax rate was 49% of net income plus whatever their state income burdens were. They left because of taxes.

Again, I'm not sure so I can't argue facts, it's just that I believe there are so many other things that factor into it.

I didn't believe the hype about it being the union's fault either.

But, yes, the unions were blamed when they first started moving. At least that was the rhetoric I heard. I remember all the blame being put on the unions. One of the statements was about paying someone such a high wage for making automobiles and expecting ordinary people making less being able to purchase those vehicles.

So, if they were paying that much in taxes, why weren't they investing to cut their tax liability.

I do want more companies that benefit Americans, I just want it to be a win situation for the American workers. I want companies to make a profit, but I think there needs to be some honor and integrity and a limit as to how they make that profit.

Also, again, I'm not anti-business, unless it is treating the country and it's people badly.

Originally Posted by nntrixie

Again, I'm not sure so I can't argue facts, it's just that I believe there are so many other things that factor into it.

I didn't believe the hype about it being the union's fault either.

But, yes, the unions were blamed when they first started moving. At least that was the rhetoric I heard. I remember all the blame being put on the unions. One of the statements was about paying someone such a high wage for making automobiles and expecting ordinary people making less being able to purchase those vehicles.

So, if they were paying that much in taxes, why weren't they investing to cut their tax liability.

I do want more companies that benefit Americans, I just want it to be a win situation for the American workers. I want companies to make a profit, but I think there needs to be some honor and integrity and a limit as to how they make that profit.

Also, again, I'm not anti-business, unless it is treating the country and it's people badly.

Investment doesn't cut your income tax liability. Investment is capitalized, not expensed. All they can get is some depreciation expense. On facilities that investment is spread over 39.5 years. Land for their sites doesn't even qualify for depreciation expense. That's why Trump is proposing in his tax cuts that corporations and businesses can write-off their investments for certain items like equipment, buildings and so forth all in the first year. Oh trust me, if the Congress will do exactly what he wants, we'll be flooded with Fortune 1000 manufacturers roaring home to the states faster than we can count them.

So they are going to come back, invest millions, maybe billions in buildings, equipment, etc., that can only be depreciated over 40 years, just to get a 15% tax break.

That doesn't compute.

Originally Posted by nntrixie

So they are going to come back, invest millions, maybe billions in buildings, equipment, etc., that can only be depreciated over 40 years, just to get a 15% tax break.

That doesn't compute.

No, Trump's proposal eliminates depreciation and allows them to write it all off in year 1 or whatever year they spend it. The rate Trump wants is 15% for everyone. The present rate is from 15% to 35% depending on how much your corporate income is. For most of the big companies, they're paying 35% so their rate would drop by 20% to 15%.

Thank you for the information.

Perhaps it could be a real incentive type program, with a 'if you do this, we will do this'.

I'm always looking for the dark side, but the government tried the 95% depreciation in the first year and it caused a lot of problems. That was during Reagan's term.

Dallas built office buildings, tons of apartment complexes, but no one to occupy them.

The buildings may be filled by now, but they dozed the apartment complexes, only the concrete foundations are left.

I saw a man interviewed that said he sat in a room where one property was bought and sold 5 times, in 30 minutes, with each one taking the depreciation, and no money changing hands.

So, if they take steps to see that doesn't happen again---

I am learning more about corporate taxes.

It was accelerated depreciation schedule. During Reagan, he changed the depreciation schedule from 39.5 years to 18, triggered a lot of development, but at the same time, the rates were still high, so everyone was tax saving crazy. When the corporate income tax is low, like what Trump wants to do, they won't do a project just because of the tax savings, the rate isn't high enough to do it that way, they'll do more investment but based on the right market reasons for doing so. The income tax is a sick thing, there's really no way to fix it, Trump's 15% with full write off when you spend it is the very best of a bad tax system for our businesses, investors, retailers and manufacturers. The income tax is a socialist, communist tool, in every possible respect. It's an authoritarian illness, a manipulation of our citizens and businesses, there's no way to fix it entirely, it's like carving up and trying to salvage a rotten apple, but his plan is as good as it can be until Americans wake up and realize that mandatory taxation on income is just wrong, all the way around, from A to Z.

The income tax needs to be repealed entirely and replaced with the FairTax or some version of a pay-as-you-spend consume/consumption based sales tax.

Americans will eventually figure it out.