Comments for The Enterprise Blog

Comment on Why Obama’s corporate tax plan is a total bust by JJ Chester

JJ Chester — Wed, 22 Feb 2012 22:39:00 +0000

Brian, it really is that simple. I see this everyday in my business as a corporate real estate consultant. We serve our clients needs based on how the location of their facilities affects their cost of doing business. While their cost for raw materials are generally constant from one potential location to another, there are many other costs that can be lowered or raised by moving from one city to another, one state to another, or one country to another. The main location variable costs are labor, utilities, land, regulations and taxation. Of those five, taxation has an impact on the three of the four others. While the differential may be only a few percent, it goes straight to the bottom line and can easily represent the difference between being competitive or being able to develop new products.

One of my major multi-nationals chose to re-charter its corporation in Bermuda solely to avoid being double taxed on its offshore activities. The benefit to them was in the $100mm/year range.

Comment on New Romney tax plan goes the full Reagan by Tom Elliott

Tom Elliott — Wed, 22 Feb 2012 21:17:47 +0000

“If Romney does become the Republican nominee, he would certainly be running on the boldest GOP agenda since Reagan ’80, maybe ever.”

What?

This plan puts is embarrassingly timid. Is it better than our current disaster of a tax code? Yes. But instead of fundamental, pro-growth reform, he’s tinkering around the edges. After eliminating deductions, a 20 percent rate cut will probably still result in an effective tax increase. And this plan only came about after Kudlow spent months beating it out of Romney. At the first sign of opposition he’ll dial back everything. That he’d proffer it at the 11th hour before an important primary he’s fallen behind in should say a lot. That he uses the language of OWS to sell the plan should say even more.

McCain’s tax plan was just as “bold” as this. He ran on cutting the corporate income tax rate to 25 percent, a full repeal of the AMT, cutting the capital gains tax to 7.5 percent (and not just for particular income classes), extending the Bush tax cuts, and a host of spending cuts/new tax credits. And McCain is barely conservative.

The Dole/Kemp plan was also just as “bold” as this: cutting the capital gains tax 50 percent (to 14 percent), cutting personal tax rates 15 percent, cutting payroll taxes, spending cuts … http://www.dolekemp96.org/agenda/economics/theplan.html

In fact, this might be the weakest GOP platform since Nixon.

Comment on Why Obama’s corporate tax plan is a total bust by taxman

taxman — Wed, 22 Feb 2012 20:29:42 +0000

Anyone with a 401K plan better look out. Between the corporate tax and the new dividend tax, your 401K is going to dwindle. This is what Obama wants. He doesn’t think its right that some people have one and others do not. He wants to be sure no one does. And those that do, it will be worth nothing.

Comment on New Romney tax plan goes the full Reagan by steve

steve — Wed, 22 Feb 2012 20:18:55 +0000

The substance and boldness of Romney’s proposal aside, what he needs to do is pitch it in such a way that it appeals not just to wonks like you but also and more importantly to the voters whose support he needs in the primaries and the general election.

And that is where he is (so far) lacking. Classic wonkish tone-deafness, failing to realize that public attitudes are shaped less by the details than whether they hear the sound bite that allows them to envision benefiting as a result.

Tell the unemployed how this will help them find a job. Tell students how this will improve the job climate for them when they graduate. Tell scared business owners how this will help prevent another recession. Tell homeowners how this will keep their houses from continuing to fall in value.

If he can’t do so, then he needs another plan.

Comment on Why Obama’s corporate tax plan is a total bust by Brian

Brian — Wed, 22 Feb 2012 19:59:47 +0000

Folks, put all this economics theory aside and stop trying to outsmart the next guy. He’s the simple truth. I’m a successful business man. I employ 87 persons. Go ahead and lower my tax rate and offset it with decreased tax deductions. Fine. If the net is an increase in my costs, I have two and only two responses to maintain status quo. I first look for ways to reduce costs, including improvements in efficiency of operations, wage freezes, and wage cuts. If that doesn’t keep my head above water, I have no other option but to raise my prices. If I can’t compete, I go out of business. The Feds need to stop trying to help me and just lower my tax rate. Do nothing else. PLEASE!

Comment on Why Obama’s corporate tax plan is a total bust by FreeCapitalism

FreeCapitalism — Wed, 22 Feb 2012 19:49:44 +0000

Corporate taxation is double taxation. It should be abolished. Economists on right and left recognize this. See Milton Friedman, Michael Boskin, Robert Reich, and Lester Thurow. Any talk of “cutting” corporate tax rate is pure nonsense, because any rate > 0% is still double taxation.

Comment on Compared to ’08, Obama is having major money troubles by Bill

Bill — Wed, 22 Feb 2012 18:57:47 +0000

That’s consistent with the emails he sends out asking for $2 or $3 to get a chance with Obama. The bloom is off the rose.

Comment on New Romney tax plan goes the full Reagan by David Steven

David Steven — Wed, 22 Feb 2012 18:55:54 +0000

Any chance this adds up? No, thought not.

Comment on Why Obama’s corporate tax plan is a total bust by steve

steve — Wed, 22 Feb 2012 18:48:50 +0000

I think the best answer is to point out that companies are sitting on record amounts of cash right now (I remember reading the amount isn’t in the tens or even hundreds of billions but rather trillions of dollars sitting on the sidelines).

They’re doing so in large part because they don’t see the worthwhile opportunities to invest those funds (and due to fear of another crisis in which a huge pot of cash would provide a cushion).

Comment on Why Obama’s corporate tax plan is a total bust by sashal

sashal — Wed, 22 Feb 2012 18:34:59 +0000

Mr.James Pethokoukis is not interested in facts and truth and reality and honesty. this Mr. is known for being GOP hack , propagandist and pitiful liar