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Originally Posted by dude1394
You said I was "making a huge assumption" here, please show me how.
I should have realized that you would pick around the edges instead of actually addressing the question, by throwing out a fairness doctrine that you cannot debate.
I'll rephrase...imo...most tax breaks are built to provide businesses (and people) with the ability to keep their dollars. For a business...that usually means keeping their dollars by investing in capital of some sort, or write-offs as the cost of doing business.
There is a possibility that there IS (horrors) a tax break that is not used for this, however your smearing of all business by saying they don't pay their "fair share" shows much more your biases, than any facts you are trying to bring to this discussion.
Which of these tax deductions do you think businesses should not take, but pay more taxes instead?
http://www.nolo.com/article.cfm/obje...1/277/235/ART/
- Auto expenses
- Cost of going into business
- Education Expenses
- Legal Expenses
- Bad debts
- Business entertaining
- Travel
- New Equipment
- Interest
- Moving expenses
- Software
- Charitable Donations
- Taxes
- Advertising |
it isn't the categories themselves as much as the opportunities for abuse.
should a company get to deduct renting a bentley when another car will do just as well?
should a company be allowed to depreciate a new piece of equipment in one year when its useful life is 5 years?
should companies be given a tax credit for advertising when they don't really need to advertise (drug cos come to mind here)?
should a company get to deduct costs of a move when it was intended to just get closer to the ceo's residence?
there really isn't a need to cite how companies abuse the "business entertaining" deduction is there...
in 2006 businesses paid a total of $395.5B in income tax, while individuals paid $1,366.241B in income tax and $834.732B in employment taxes.
in 2006 the total revenue of all businesses in the usa was over $21.851 Trillion. total deductions were $19.688 Trillion. that produces an effective tax rate of 18.2% on net income.
in 2006 total income by individuals was $8.030 trillion, with adjusted income of $5.579 trillion. that produces an effective tax rate of 24.5% on adjusted income (not including the employment tax, which would make it even more skewed).
so no, I do not see businesses carrying their fair burden of taxes.