Corporate Tax, Small Business, Etc.

[joecoolfreak]

Aaaah but unfortunately your article from the AP does not distinguish between the two it simply says corporations

Yes, it says corporations

Most are self-employed persons operating unincorporated businesses

In other words, the self-employed stats are mostly unincorporated, ie...not corporations at all

Not that this is your fault or mine but because of the incredible vagueness that is most AP articles I am going to assume that it means ALL corporations considering the article said

I agree is it certainly more vague than it should be, yet corporations are not the same as businesses. To be a corporation, you have to incorporate which we can see from the first quote, those self-employed people didn't.

I highly doubt any major corporation would try and do this and any small business with at least one employee would be foolish to do so hence, why I took into account those that are self employed hence, still making my point valid

I agree that no major corporation would, but I do believe that a lot of smaller businesses with employees would do this. I know of several that do. Is it right, no, but that's part of the problem I outlined to start out with. There are a lot of businesses skirting the tax code.

Your going to have to show me how you came up with that considering the artilce clearly states. So you've got 75% of missing corporate tax funds that aren't accounted for again since 77% of the business in this country are non-employer, I'd be willing to bet that the majority of that missing 75% falls under them.

I am stating the exact quote from the article in AP which was vague to be sure, yet non the less credible. Another quote from the AP article will help me out here:

About 25 percent of the U.S. corporations not paying corporate taxes were considered large corporations, meaning they had at least $250 million in assets or $50 million in receipts.

That means at least 25 of the 2/3 that I am claiming are not paying corporate taxes like they should ARE large business and certainly can't be part of the self-employed because they have at least 1500 employees to be considered large. Now of course, that article defined large by assets and reciepts, but I think we can assume that if you have 250million in assets or 50 million in sales, you aren't self employed. To simplify the math here:

Lets say that there are 100 business in the US. By my claims, 2/3 of them don't pay ANY corporate taxes. That means 66 of those businesses are likely to be cheating the system. Also 16.5 of those 66 are LARGE business and they definitely aren't part of the self employed statistics.

Now you quoted:

increasing numbers of limited liability corporations and so-called "S" corporations pay taxes under individual tax codes.

These again are corporations and as I have already clearly shown, the self employed are unincorporated, so again don't fall in here.

Think about it, we are in an economic crisis so what is every business trying to do right now? SAVE MONEY. Again depending on how much the company is bringing in, they save themselves money by just claiming all the money made through the business as personal income. Like I said 39.2% Corporate tax+State tax+health care=very small income once all is said and done.

I completely agree that these businesses are trying to "cheat" the system to pay lower taxes which is just another reason why I support Obama's plan to raise the taxes on those that are trying to get out of the system that everyone else has to pay.

To be honest I hadn't gotten into the receipts so you will have to give me sometime to go through them

As I said, take all the time you need. I will be back tomorrow for more discussion.