zonerlarm:
Barbara, what is wrong with tax breaks for wealthy corporations? The fewer taxes they pay, the stronger the company can grow, the greater the profits, and ultimately the higher the tax collection. It helps the GDP, it allows the companies to expand and hire more American citizens, and allows their wages to go up, which in turn generates more income tax, and brings more money to the economy as it will be spent by the workers, which brings in yet more sales tax! Not to mention it can help in exports which too are taxed and thereby generate more tax revenue, all because initially a tax break was offered. It's the same thing in your IRA. Your traditional IRA can grow much faster because of it's immediate tax break. But in the long run, the traditional IRA will cause you to pay more taxes to the government than a ROTH IRA -- which makes you pay the tax up front while your tax income bracket is still low.
Zonerlarm, it is kind of a no-brainer to me anyway that if a corporations is already making millions they are doing great and don't need tax breaks. Most of the wealthy corporations aren't into profit sharing with workers, at least that has been my experience. Also the current trend for wealthy corporations is expanding overseas not here in the US. because it costs them less in employee taxes and they have less employee liability issues. Now I could see employment tax cuts encouraging higher wages and hiring here in the states, but corporate tax cuts only puts more money in already wealthy owners pockets so they can buy another lake property or something.
If you think already wealthy people getting even wealthier is going to make everything better, then you have the right to your opinion, but If they are already wealthy and it isn't helping, I don't see how them getting even wealthier is going to do much for anyone but them.
Anyway, why would they raise wages if they get corporate tax breaks and make more profit, because if they raise wages they are going just going to have to pay more in employment taxes ,and there goes the profit right back to taxes, but just in the form of employment tax instead of corporate tax.
Saving accounts, and retirements funds is another issue altogether, everyone no matter what income level should only have to pay taxes once on the money they make, taxing on the profits from savings and retirement funds if they have already paid income tax on the money they used to start these accounts is double taxation to me and grossly unfair. Of course if tax is deferred and the money put in retirement is not shown as income and taxed, then when it is taxed that is fair as long as it is taxed once and not continously taxed on profits each year.
We run our own business, and I can tell you, that if we could share the profits by raising wages or could hire more employees without having to pay more employment taxes we would be happy to do so, but with employment costs so high and liabilities so serious, we put as much profit as we can into more equipment and better equipment that reduces the need to hire more help. Wealthy corporations that can do the same because it is the only thing that makes sense, and those that can't outsource or further their develpments in other countries where employment costs aren't so high.
If I ever get really rich I will change my mind, I will want corporate tax breaks then so I can buy a fancier house, more new cars, lake properties, or I might want to buy a bigger yacht, more jewelry or take more vacations, but until I get rich ( LOL) what do you say we give the tax breaks to those that really need it so they can keep enough of the money they earn to save a little for their retirement, and then we don't have to support them when they can no longer work.