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Current Events & Hot Topics Current Events & Hot Topics

Obama: Top Tax Rate Should Be 28% for Corporations, 40% for Small Business

Posted by on Jul. 31, 2013 at 7:50 AM
  • 104 Replies
2 moms liked this


The New York Times reports that President Obama is reviving an old proposal to lower the corporate tax rate from 35 percent to 28 percent (and 25 percent for manufacturers). Obama's push to lower the corporate tax rate to 28 percent comes less than a year after he raised the top individual income tax rate, paid by many small businesses, to 39.6 percent.

Official portrait of Barack Obama

In a speech delivered Tuesday afternoon, Obama did not explain why he thinks it's a sound economic idea to raise the top marginal tax rate on small businesses but lower it for corporations.

"Right now, our tax code is so riddled with wasteful loopholes that many companies doing the right thing and investing in America pay 35%, while the corporations with the best accountants stash their money abroad and pay little or nothing at all," Obama said, according to the text of his prepared remarks. "I’m willing to simplify our tax code in a way that closes those loopholes, ends incentives to ship jobs overseas, and lowers rates for businesses that create jobs right here in America."

Neither Obama's Tuesday speech nor his February 2012 corporate tax reform plan explained in detail which loopholes would be closed. During the 2012 presidential campaign, the Obama campaign hammered Mitt Romney for not saying which loopholes he would close to pay for a proposed reduction in individual income tax rates.

Makes no sense.  Small business is the backbone of the country.  They should both be lowered.

Minnow Slayer

by on Jul. 31, 2013 at 7:50 AM
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Replies (1-10):
QueenAtargatis
by Member on Jul. 31, 2013 at 7:53 AM
4 moms liked this
We're watching the death of small businesses. It breaks my heart. =/
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Della529
by Matlock on Jul. 31, 2013 at 7:54 AM

 How does this translate into small businesses paying 40 percent?  As a small business owner do you avoid paying taxes by hiding income offshore?

Land sakes, I wish I could drink coffee, lol.

teri4lance
by Silver Member on Jul. 31, 2013 at 7:56 AM
Lol I assure you the small business I work for doesn't hide money off shore lol. Were you being sarcastic?
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stacymomof2
by Ruby Member on Jul. 31, 2013 at 7:59 AM
1 mom liked this
Individual rates are higher. Corporate rates are lower. If a small business has an income of 250grand a year they would save money by incorporating whixh takes few hundred buckss and offers several other benwfits as well.
Della529
by Matlock on Jul. 31, 2013 at 8:04 AM
Quoting teri4lance:

Lol I assure you the small business I work for doesn't hide money off shore lol. Were you being sarcastic?

 Was this question for me? 

teri4lance
by Silver Member on Jul. 31, 2013 at 8:06 AM
Uh huh


Quoting Della529:

Quoting teri4lance:

Lol I assure you the small business I work for doesn't hide money off shore lol. Were you being sarcastic?

 Was this question for me? 


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stacymomof2
by Ruby Member on Jul. 31, 2013 at 8:08 AM
Actually the highest rate would only be paid if one person is making an income of 250 grand, too, mind. All this article is saying is that obama wants to lower corp taxes. It doesn't mean all self proprietors will pay 40 percent. Even though it implies it. Making a straight income of 250 grand will get you the highest individual tax rate whether you pay yourself a salary of 250 with your corporation or whether your sole proprietor business makes an income of 250. Either way if your personal income is high you will pay the top tax rate. This writer of this piece doesn't seem to understand how taxes work.
Carpy
by Ruby Member on Jul. 31, 2013 at 8:11 AM
2 moms liked this

WHAT?  How does it translate?  because that is our rate.  No translation needed.

If you can't drink coffee, do as i do and drink a monster.  I thinkyou may need one.

Quoting Della529:

 How does this translate into small businesses paying 40 percent?  As a small business owner do you avoid paying taxes by hiding income offshore?

Land sakes, I wish I could drink coffee, lol.


Minnow Slayer

Carpy
by Ruby Member on Jul. 31, 2013 at 8:30 AM
1 mom liked this

Not all types of businesses can become LLC's.  And many small businesses do not make that threshold.

Quoting stacymomof2:

Actually the highest rate would only be paid if one person is making an income of 250 grand, too, mind. All this article is saying is that obama wants to lower corp taxes. It doesn't mean all self proprietors will pay 40 percent. Even though it implies it. Making a straight income of 250 grand will get you the highest individual tax rate whether you pay yourself a salary of 250 with your corporation or whether your sole proprietor business makes an income of 250. Either way if your personal income is high you will pay the top tax rate. This writer of this piece doesn't seem to understand how taxes work.


Minnow Slayer

Carpy
by Ruby Member on Jul. 31, 2013 at 8:36 AM

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Limited-Liability-Company-%28LLC%29

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