Fox host Eric Bolling either lied or was unaware that the effective tax rate for corporations is much lower than the nominal 35%.
In a special Cashin’ In show about “the candidates, the economy and the future for American prosperity,” Bolling claimed the big reason why products aren’t made in the United States is because the corporate tax rate is 35%, “far higher than any other developed or developing country.”
Panelist Julie Roginsky wasn’t buying it. “Come on,” she said. “You know that the effective tax rate is really not that. That’s a statutory tax rate.” She said the reason manufacturers have moved abroad is because labor is so much cheaper.
“The tax rate is still 35%,” Bolling insisted. “It makes almost no sense to open a brand new plant or factory in America when you can do it overseas.”
“What’s the effective tax rate, Eric?” Roginsky asked. “It’s not 35% and we both know it.”
“We don’t know the exact effective rate,” Bolling said.
“Because everybody has deduction after deduction,” Roginsky added.
“It starts at 35, and it starts substantially lower in foreign countries,” Bolling continued.
In fact, Roginsky is correct. And if you read between the lines, it’s easy to see that Bolling knew it. But cutting corporate taxes is part of Donald Trump’s economic policy, it was announced. So it was not surprising that Trump-loving Bolling tried to argue that that would bring back manufacturing jobs to the U.S.
Watch it below, from the August 17, 2016 Cashin’ In.
The just wind up poor with a brown nose to show for it.
The bigger question is why Johnny LunchBucket who makes $25k/yr supports lower taxes on corporations. I mean, Johnny, you really think lower taxes on WalMart and AT&T means you’ll get a raise? Seriously -?
But higher taxes on corporations will mean you get to keep more of your $25k/yr because your personal taxes will be lower.
Ever think of that? No? Well, I guess you are a faithful Muslim-hating Fox watcher now, aren’t you!!
Now, if all the Congresscritters (especially the GOPers) who are so worried about US businesses going overseas to “escape” the tax burden really want to stop that, there’s a very easy method: Any corporation that moves overseas to escape the US corporate tax rate will be assessed with an ACTUAL tax rate of 95% on ANY AND ALL earnings made inside the US. And ANY individual who owns shares in stock in such corporations will be assessed at a minimum 50% tax rate (note—while this sounds extreme, it wouldn’t really affect many “common” people since few folks under the $250,000 a year income bracket will have enough shares of any stock to make it worthwhile as an income source; and anyone who shares off their stocks in those companies within, say, 90 days of the corporate move, won’t even have to pay tax on any of that “ill-gotten gain”).
Now, it might cause problems for Wall Street but plenty of foreign-based companies trade on Wall Street. The draconian tax punishment I’m suggesting would only apply to “fleeing” companies—not those who’ve already “fled” (though the latter group should be taxed at a higher rate).
Or, the whole tax code could be rewritten so that ALL foreign-based corporations (whether “refugees” from the US tax rate or those actually created overseas) don’t get all the tax breaks and exemptions they currently enjoy.
But no. The right-wing simply wants to cut taxes to nothing so the stinking rich get even stinkier while the rest of us wind up in some level of permanent indentured servitude. And all those “regular” folks who are supporting tRump and the GOP simply are too fucking stupid to see that. It’d be nice if someone could make them understand—if you’re over 30 and you’re making no more than $50,000 a year, you’ll NEVER get rich+ through “hard work” and “lower taxes.” You have to be BORN rich if you hope to “become” rich in today’s America.
+Okay—IF you’re lucky enough to create some sort of product or device that the public needs (or thinks it needs), you might get rich. But note—luck is NOT “hard work.” You could labor for a decade, investing thousands of dollars, in creating the product before seeing any meaningful results. And, in most cases, corporations buy up the rights to your product and you won’t see any more money (unless you have a very crafty attorney).
