Originally posted by The17sss
I'm not talking about just federal corporate taxes, which are about to become the highest in the world.
actually, proposals are to reduce the corporate tax rate if the other international anti-deferral provisions are enacted. If the corporate rates aren't lowered it will have a truly detrimental effect for US multinationals. At that point, i will regret voting for obama and democrats.
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Originally posted by The17sss
State and local taxes vary, "combined reporting" which is when govt. collects taxes from a business on income derived in other states (we have branch offices in 3 states),
that's not accurate. combined reporting is a method of determining apportionable income for related corporations (i.e., the income of each related corporation is combined for purposes of determining the taxable income in a specific state). A state never has the ability to tax income that has no connection with the state. the theory behind combined reporting is to prevent corporations from reducing their apportionable income by creating a corporation in each state.
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Originally posted by The17sss
the soon-to-be health benefit tax which will really hurt,
specutalive at best
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Originally posted by The17sss
the Bush tax cuts expiring soon has to be taken into consideration as a tax increase from a business perspective as well.
the bush tax cuts were directed at individuals, not corporations. I assume you operate as a partnership for tax purposes.
people should actually look at the bush tax cuts as an unwarranted gift.
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Originally posted by The17sss
I can't just react, I have to prepare for the stuff that is coming such as payroll tax increases, capital gains tax increases, income tax increases, etc.
payroll tax increase is specutalive.
A capital gains tax increase will not affect corporations.
Income tax increase won't affect corporations.
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Originally posted by The17sss
When something is taxed, you depress the activity. When incentive to thrive (which I guess is a whopping $250K per year... hardly enough to employ 1 person and deal with overhead) is depressed, the entrepreneurial spirit dies a little more each day. Jerz you're a tax lawyer. You know it's a lot more complicated than to discuss 1 percentage number and apply it across the board.
tax increases are relative. people with an entreprenuerial spirit seek to be better off than their peers. since tax increases don't cause the rich to become poorer than the poor, i don't believe it has as great an effect as you claim.
Lebezniatnikov
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Originally posted by jerZ07002
people should actually look at the bush tax cuts as an unwarranted gift.
Exactly! They were never designed (by Republicans, no less) to be permanent in the first place! Calling their sunset a "tax increase" is absolutely absurd, and entirely disingenuous.
The17sss
quote:
Originally posted by jerZ07002
actually, proposals are to reduce the corporate tax rate if the other international anti-deferral provisions are enacted. If the corporate rates aren't lowered it will have a truly detrimental effect for US multinationals. At that point, i will regret voting for obama and democrats.
Last I heard (I don't feel like digging it up, unless you want me to but you should know this anyway), but Obama was pushing to close those tax loopholes for overseas US companies' profits. Don't most of those companies greatly affect the employment/prosperity of the countries they are in as well? Doing so would make us less competitive abroad, right? A new Smoot-Hawley for this era. This dude Dan Mitchell explains it's destructiveness pretty well:
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A state never has the ability to tax income that has no connection with the state. the theory behind combined reporting is to prevent corporations from reducing their apportionable income by creating a corporation in each state.
but... the way our business operates, the income produced does have connection to the states in which the service is provided.
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specutalive at best
payroll tax increase is specutalive.
A capital gains tax increase will not affect corporations.
Income tax increase won't affect corporations.
I'd say it's more then specutalive. But like I said, I can't just be reactive... I have to prepare for what the floating trial balloons may be impending signs of. Capital gains taxes will certainly affect me as a business owner because we actively look for acquisitions and things to invest in to grow our portfolio. Regarding the income tax increase... I think a raise in that would make quality employees more likely to start browsing around for something that pays a little more, when they may not have before; there's no loyalty when it comes to money, and right now even making $50 more per week might be enough to make me lose an employee... and I'd have to start from scratch making a new investment in a new employee that I'm not sure will end up as a quality hire.
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tax increases are relative. people with an entreprenuerial spirit seek to be better off than their peers. since tax increases don't cause the rich to become poorer than the poor, i don't believe it has as great an effect as you claim.
but on the other hand, as businesses become more profitbale, they are more likely to invest, to hire people and grow, and to take risks.
jerZ07002
quote:
Originally posted by The17sss
Last I heard (I don't feel like digging it up, unless you want me to but you should know this anyway), but Obama was pushing to close those tax loopholes for overseas US companies' profits. Don't most of those companies greatly affect the employment/prosperity of the countries they are in as well? Doing so would make us less competitive abroad, right? A new Smoot-Hawley for this era. This dude Dan Mitchell explains it's destructiveness pretty well:
i don't listen to cato guys. There's clearly a slant. I like the non-partisan policy views i received from the profs at NYU, most of whom practiced at some of the best law firms in the nation.
anyway, rangel, the head of the finance committee (or the JCT - i forget which one) coupled his foreign tax credit clampdowns (i.e., anti-deferral provisions) with corporate tax decreases, to 25% (a much more competetive rate - i believe we should go to 20% corporate rate). I also think the federal government should prohibit states from being able to tax corporations (something that could NEVER happen because of the state's rights brigade).
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Originally posted by The17sss
but... the way our business operates, the income produced does have connection to the states in which the service is provided.
there is a unitary business concept (all business activities related to the business activities within the state are included in the apportionable tax base - and in combined reporting states those activities of related corporations are also included as long as the business activities are part of the unitary business) and an allocation methodology that attempts to tax only income related to activities in the state. I could write pages on this topic, but that would cost you a few hundred dollars and hour. So, just trust me that the constitution prohibits states from taxing income that is not related to the activities in the state (of course there is some guessing involved, so to you it may appear that income is being taxed in a state when it is not connected, but we need to guess considering all the different factual scenarios).
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Originally posted by The17sss
I'd say it's more then specutalive. But like I said, I can't just be reactive... I have to prepare for what the floating trial balloons may be impending signs of. Capital gains taxes will certainly affect me as a business owner because we actively look for acquisitions and things to invest in to grow our portfolio. Regarding the income tax increase... I think a raise in that would make quality employees more likely to start browsing around for something that pays a little more, when they may not have before; there's no loyalty when it comes to money, and right now even making $50 more per week might be enough to make me lose an employee... and I'd have to start from scratch making a new investment in a new employee that I'm not sure will end up as a quality hire.
i hear ya.
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Originally posted by The17sss
but on the other hand, as businesses become more profitbale, they are more likely to invest, to hire people and grow, and to take risks.
there is certainly truth to that, but the intersts of the whole (society) have to be weighed against the interests of the individual. It's a delicate balancing act.
The17sss
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Originally posted by jerZ07002
I could write pages on this topic, but that would cost you a few hundred dollars and hour.
I like that you take the emotion out of things and usually react to the facts and the situational contexts. If you lived down here I'd definitely be interested in paying for your services.
jerZ07002
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Originally posted by The17sss
I like that you take the emotion out of things and usually react to the facts and the situational contexts. If you lived down here I'd definitely be interested in paying for your services.
thanks man - that's a great compliment. The way the economy is going it's looking like I may have to break out on my own (i.e., lay-offs are looking imminent).
If your company has some serious state and local issues (e.g., state audits, litigation, or just plain old state tax planning) I can refer you to a great state and local practice based mainly out of DC, but with a group in NYC and an office in Atlanta. I practice mainly international and federal corporate taxation, and I do a whole array of calculations supporting tax positions. If you need that kind of work, holla! I'm sure my firm has an office somewhere near you (Greensville, Raleigh, Columbia, Atlanta, whereever). ;)
The17sss
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Originally posted by jerZ07002
thanks man - that's a great compliment. The way the economy is going it's looking like I may have to break out on my own (i.e., lay-offs are looking imminent).
If your company has some serious state and local issues (e.g., state audits, litigation, or just plain old state tax planning) I can refer you to a great state and local practice based mainly out of DC, but with a group in NYC and an office in Atlanta. I practice mainly international and federal corporate taxation, and I do a whole array of calculations supporting tax positions. If you need that kind of work, holla! I'm sure my firm has an office somewhere near you (Greensville, Raleigh, Columbia, Atlanta, whereever). ;)
hmmm.. well our HQ is in South Carolina so if you're licensed in that state... boo ya! Something to think about. Haha... how ironic. We have a preliminary deal with a Chinese company in the works who wants to take our service and product to China/India/Indonesia. The stuff we do in Malaysia is through lawyers there because it's a Malaysian based company. But we're going to need legal representation before mid-August for this new thing we're trying to work out. I'll have to PM you later if you may be interested.
Clovis
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Originally posted by The17sss
I'm surprisingly (to you all) liberal about a few issues that may shock you.
Anyway the greatest thread to entrepreneurs and small businesses? Well since I actually have experience running 2 of them for 6-7 years now, I can tell you that constant increasing taxes are the most difficult obsticle to overcome. It makes the service more expensive to the consumer, and it makes it incresingly more difficult to hire people. What you may not understand is that to pay someone a $60,000 salary, it may actually cost me, the employer, about $75,000 per year with no guarantee for a couple of years that based on that person's work, I'll see a return on that investment. Haha... don't talk to me about living in reality, youngster. You're an idealistic DJ living at home in a state that's about to go bankrupt from years of liberal entitlement policies..... and I run 2 businesses and am responsible for peoples' livlihoods. When you start signing the front of checks, I'll listen to your crap about what it's like to live in the real world.
So in your reality, tax increases are your number one concern when operating your business?
Market share, competition, healthcare costs (if any), operating expenses, financing, advertising, these are all secondary concerns to taxes?
Are you serious?
Clovis
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Originally posted by The17sss
By the way, Clovis... what diminishes the entrepreneurial spirit from a theoretical standpoint is more and more people being convinced by the State that they are entitled to this, and to that... being made to believe the deck is stacked against them. Rather than seeing other peoples' success as motivation, they start to say, "How the hell did that person get all that? It isn't fair," and become succeptible to liberal policies of a redistributive nature. EMpty promises by the State for decades that if elected, you can rely on them... you can rely on government and they'll take care of it; they'll fix your problems. That's how the spirit is diminished; when the individual shifts personal responsibility and motivation over to the State for them to "handle". It's just creating an ever expanding role of people dependant on government.
Yeah, we've heard this story over and over and over from you but like I said, in REALITY it just isn't the case.
CEO's are not quitting their jobs to get on welfare.
People still want to make money in this country, creating a better safety net for people on the bottom is not going to reduce anyone's desire to try and make more money.
Think about the logic of what you are saying. It really isn't that difficult if you just think everything through.
Lowering taxes on the middle class isn't going to make all of them decide they don't need a raise, or don't need to run the family business anymore. We're talking about small amounts of help here and there not paying everyone full time salaries off the backs of the uber rich.
I don't understand how you can continuously spout this position since it just doesn't make any ing sense in the real world.
Clovis
If you ask me the biggest threat to entrepreneurial spirit in this country is mega corporations and conglomerates like Wall-mart, starbucks, for whom enormous profit is the only bottom line, and who have the resources available to squash any small competition in their way.
Why would anyone in their right mind open up a small hardware store with wall-mart around the block using chinese labor and imports to sell everything for 20% less?
Why open your own coffee shop in this economy with Starbucks offering drive-thru service and McDonalds about to open their own coffee wing?
The17sss
quote:
Originally posted by Clovis
If you ask me the biggest threat to entrepreneurial spirit in this country is mega corporations and conglomerates like Wall-mart, starbucks, for whom enormous profit is the only bottom line, and who have the resources available to squash any small competition in their way.
Why would anyone in their right mind open up a small hardware store with wall-mart around the block using chinese labor and imports to sell everything for 20% less?
Why open your own coffee shop in this economy with Starbucks offering drive-thru service and McDonalds about to open their own coffee wing?
I agree that regulations against a monopoly must be in place, but I admire private companies like Walmart who started from nothing, didn't take any bailout money, and now are looking to hire 22,000 new employees during this recession. That "corporate monstor" theory is so played out. I guarantee Joe's hardware store on the same street as Walmart has a lot less overhead and can figure out how to stay in business. Or, they can evolve like most businesses and maybe get Walmart to sell their products. Mcdonalds, Dunkin Donuts, Starbucks... it's great to see innovation and competition. Running a business isn't a "right"... you gotta evolve and compete; it's like anything else. Businesses exist to make a profit first, not to supply people with jobs. Microsoft is another example... do you have any idea how many jobs and how much their existance contributes to the economy that so many people benefit from? Those evil rich people pay for the vast majority of the social services that poor people benefit from. It's easy to say "I don't mind paying a little extra in taxes to help people less fortunate," because it doesn't really apply to you personally... you're really saying, "I don't mind those who make a ton of money paying a little more to help others." It's always a little more and a little more... how much is enough? Almost 50% of the people aren't even paying income taxes man. The "war on poverty" being fixed with democrat ideas hasn't worked a bit with untold amounts of wealth transfer out of the private sector over the decates. Fair doesn't exist- there's always going to be people born with the last name "Trump" or "Hilton", and there's always going to be people born to crack addicted parents. Time to think less about the word "fair" and more about "individual responsibility for one's life".
From your other posts- yeah CEO's aren't standing in unemployment lines, and are still trying to make money... it's what they know how to do best. But because of the cost of doing business being so high, it makes hiring people very difficult... or investing in other ventures that will lead to more job growth. It's clear to see that when corporate taxes are lowered, employment rises and more investment happens, which of course leads to more tax revenue for the government. It's a fact. When the uber rich hold on to their money extra tight, the less fortunate suffer more because it slows down the economy. Makes sense to me.
Finally, to me personally, yes taxes and tax increases are the most important factor.... because once I know how much the cost of doing business will be, I can figure out where to spend the rest of it in terms of salaries, marketing, etc.
jerZ07002
quote:
Originally posted by Clovis
If you ask me the biggest threat to entrepreneurial spirit in this country is mega corporations and conglomerates like Wall-mart, starbucks, for whom enormous profit is the only bottom line, and who have the resources available to squash any small competition in their way.
Why would anyone in their right mind open up a small hardware store with wall-mart around the block using chinese labor and imports to sell everything for 20% less?
Why open your own coffee shop in this economy with Starbucks offering drive-thru service and McDonalds about to open their own coffee wing?
I'm the biggest walmart detractor there is, but you have to remember that starbucks, mcdonalds, and walmart all started as small businesses. Furthermore, retail shops aren't the only way to be break out. If anything, mega chains force people to be more creative and innovative such that they can compete (I.e., finding a niche). Let's not forget, also, that some. Mega chains offer the opportunity for people without inique ideas to franchise. These are people who are also not big risk takers, so they are being entreprenuerial as a result of megachains (e.g., mcdonalds, wendys, burger kings, etc).
