I was using it to imply that they currently don't really have a tax "burden" and they certainly don't need a tax "relief"
They do have a tax burden.
Let's use some of the examples used in the article:
Apple, $19 billion in income taxes.
Microsoft, $19 billion in income taxes.
Pfizer, $2 billion in income taxes.
Mind you, these are direct income taxes. Not property taxes, not payroll taxes, not royalty/capital/other taxes, but pure income taxes. Which would have increased if they repatriated foreign income. Income that, you know, already been taxed at the foreign source.
So, yes, they have a tax burden. A very large one, in fact. Offering these companies tax reliefs in order to keep manufacturing in the US is a smart move, and one that states have been doing for
decades. Attributing Trump to this particular one is a little silly, but if he really negotiated it, then kudos for him.
First we can look at Pews research which suggests that taxes are fair based on income and tax returns. I think that is honestly a fair assessment but on the other hand:
And they are entitled to their opinion. Do you know what their opinion is, and can you describe it in your own words?
Second we can look at Americans for tax fairness
They state that the Top 1% own 35% of the wealth but only pay 24.7% federal income tax rate.
This tells me their their wealth is stored in other assets that allow them to avoid taxes. At least given what limited knowledge I have on the subject.
Um....no.
What this tells you is what it exactly means. While the top 1% of the US owns 35% of the total US wealth (I heard so many differing values to this, ranging between 25 to 60%), and their
average rate is 24.7% rate, that means that most of their income is considered capital in nature, which is taxed at 23.8%. No illegal "tax evasion" done. It also shows that most of the income from the top 1% of the nation in terms of wealth is investment. Investment with money that has already been taxed before, and only the income from the investment is being taxed (and not the principle).
There is nothing wrong with any of that at all.
Further more a progressive tax isn't about necessarily being "fair" % wise but rather fair $$$ wise.
Define fair.
The aim is about more income equality and about give more money to the less fortunate. The wealthy have more money and only a certain amount of money is required to live a comfortable lifestyle, therefore they have more money to give. So "fair" in this regards is actually in relation to individuals and flat $$$ amounts.
You just defined income redistribution. How is taking income from people who earned it and giving it to the government, who redistributes said income in various programs, including welfare, considered fair?
Going even further the wealthy take advantage of Tax loopholes, which we can't blame them for doing that but that doesn't mean we can't fix the loopholes. Namely the tax havens.
Believe it or not, this discussion was already done
in a separate thread.
I think the pharmaceutical industry is the worst though because most of their drugs are paid for by tax payers and they then turn around and sell them for a huge profit and avoid tons of taxes through tax havens and other loop holes.
Let's see:
"Most of their drugs are paid for by tax payers..." I'm assuming you mean government grants given to companies for R&D. In which case, you are right.
"avoid tons of taxes through tax havens..." Actually, the pharmaceutical industry is one of the few industries that cannot hold offshore accounts at all by regulation. So, nice try.
"...and other loop holes." Can you name some?
What erks me the most is people claiming a loophole without knowing what a loophole is. Taking advantage of what tax law specifically states is not a loophole. Taking advantage of what tax law (or any law) doesn't intend is.
Section 179 is commonly referred to as a tax loophole, but it's a specific law detailing expending capital investment (mainly machinery and equipment) fully with limitations. That was specifically created to expense specific expenses instead of doing a modified schedule for expending them (aka depreciation). Not a loophole as that is what the law intends to do.