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How do you perceive tax cuts for big companies?

We make our living in the oilfield industry- and here's what we experienced: The company my husband worked for had tax cuts, then they got taken away - when they did get taken the impact trickled all the way to the bottom on the totem pole.... smaller wages, less hours, etc. which in turn killed our income. The company was having to pay more out for taxes and that money had to come from somewhere - now we know that the execs could have taken a cut in pay- but that's not gonna happen - so it's the ground floor employees who suffer. Which is Main Street...... so, even though it sticks in my craw I have to agree with Exxon-Mobil getting a tax break - because I know how they shift those dollars when they get the break..... What are your thought? Is my thinking wrong? Was my experience something else?

 
PaceMyself

Asked by PaceMyself at 10:04 AM on Oct. 3, 2008 in Politics & Current Events

Level 5 (75 Credits)
This question is closed.
Answers (10)
  • You are absolutely right. IF you over tax those who provide the jobs the jobs will go away! They will pass on their losses they will cut jobs plain and simple. Who do people think are providing jobs to everyone the low income folks now it's the rich who owns the businesses and create the jobs!
    mommacat

    Answer by mommacat at 12:34 PM on Oct. 3, 2008

  • Your thinking is exactly how I think. Tax the rich and the poor get poorer. It all rolls down hill. Tax the rich and the wages go down and prices go up. Does anyone really think they aren't going to make up for it by passing it down to all of us?
    bizlady

    Answer by bizlady at 10:31 AM on Oct. 3, 2008

  • That's what I've seen too.
    "Trickle down" economics might not work well when people are expected to pass on good stuff - afterall, who wants to share that tasty slice of pie? But if you can pass on all or even part of that nasty slice of liver, who wouldn't? When it's bad stuff "trickling down" - it doesn't trickle, it pours.

    It's so easy to scream "corporate fat-cats can pay for it" but all that does is drive the companies overseas - costing us jobs.
    kaycee14

    Answer by kaycee14 at 11:44 AM on Oct. 3, 2008

  • I'm an accountant and work for the federal government. So I can see both sides of it. But I'm of the thought that big companies need to pay their share of taxes. Yes, they will attempt to pass their loss down to the little guy, but in the long run (in my opinion) the little guy still comes out ahead. Math example: You make $20,000 a year. Exxon makes $1 billion. If Exxon gets a tax cut and only pays 10%, then the money still has to be made up for somewhere in the federal budget. So you (and all other average Americans) are forced to pay higher taxes. But let's say Exxon DOESN'T get that tax cut...and they pay 30%. The federal budget makes a LOT more off their 30%...thus being able to cut taxes for the average American.
    HadleyBellsMom

    Answer by HadleyBellsMom at 11:51 AM on Oct. 3, 2008

  • I think this works; Big company receives tax incentives (usually cuts) to come to Normal City, USA. Big company creates jobs, pays their workers fair wages and provides decent-good benefits. Worker can afford to buy cars, houses and milk and pumps that money Big Company paid him right back into the economy. Which in turn stimulates the economy. The other scenario: Big Company pays millions extra in taxes. Pays worker less wage, and cuts benefits . Average worker can't afford to buy a car and has trouble paying his mortgage because he has less money. He stops buy, and less money is pumped back into the economy. Now there are some loopholes in both these theories, I know. But they are both true to a great extent. We live it.
    PaceMyself

    Answer by PaceMyself at 2:08 PM on Oct. 3, 2008

  • Oh and the last 'tax kickback' we got (which was suppose to stimulate the economy) were those dad-gum "Stimulus Checks" we all received...... which came from our money and will more than likely HAVE to be paid back at some point! Since the tax rebate is being funded by more debt instead of a reduction in spending, the rebate is essentially a wealth transfer from future tax payers to us. I sent mine back as a prepayment on tax that I'll owe come April. No thanks, I have enough debt.
    PaceMyself

    Answer by PaceMyself at 2:18 PM on Oct. 3, 2008

  • more than likely? oh yes, it will be paid back, the stimulus check was not a gift. it is an estimate of your tax return from filing 08 taxes. if you got a stimulus check it will be deducted from any return you would have gotten in back in 09 in the form of a refund. which is why not all americans got one, only those who were expected by government statistics to have another refund for 2008 taxes.
    jewjewbee

    Answer by jewjewbee at 2:22 PM on Oct. 3, 2008

  • I'm not at all happy with the Bushanomics......
    PaceMyself

    Answer by PaceMyself at 2:39 PM on Oct. 3, 2008

  • I agree with the original poster. At Least with the oil companies, they can't pack their bags and move to another country like so many other companies have done to avoid paying such high taxes. I don't know why, but I was really shocked to learn that Ford is no longer an American company, and that you can't buy a large appliance that was made in the USA. Actually, ther isn't much you can buy that was made in the USA!

    Lornamay

    Answer by Lornamay at 2:52 PM on Oct. 3, 2008

  • I think this all smacks of social welfare for corporations and it STINKS. I think we should vote out anyone who voted FOR this corporate bailout.
    Trixiebelle2

    Answer by Trixiebelle2 at 2:52 PM on Oct. 3, 2008

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