The White House and congressional Republicans are finalizing a tax plan that would slash the corporate rate while likely reducing the levy for the wealthiest Americans
[...] The plan would likely cut the tax rate for the wealthiest Americans, now at 39.6 percent, to 35 percent, people familiar with the plan said Monday. They spoke on condition of anonymity ahead of a formal announcement.
In addition, the top tax for corporations would be reduced to around 20 percent from the current 35 percent, they said. It will seek to simply the tax system by reducing the number of income tax brackets from seven to three.
[...] Republican senators on opposing sides of the deficit debate have tentatively agreed on a plan for $1.5 trillion in tax cuts. That would add substantially to the debt and would enable deeper cuts to tax rates than would be allowed if Republicans followed through on earlier promises that their tax overhaul wouldn't add to the budget deficit.
https://www.apnews.com/d7929cdd15c3437db07147d219b391c4
(Score: 1) by khallow on Tuesday October 17 2017, @02:09PM (4 children)
Because tax is not income. Taxing at 10% can still be more profitable than having it sit somewhere at 0%, assuming of course, that 0% is the actual rate they are paying on the meager interest income they would get from cash sitting around.
(Score: 1, Informative) by Anonymous Coward on Tuesday October 17 2017, @03:52PM
I don't buy it. Hell, taxing at 90% is still more profitable than having it sit somewhere at 0%...
(Score: 2) by bob_super on Tuesday October 17 2017, @05:25PM (2 children)
> Taxing at 10% can still be more profitable than having it sit somewhere at 0%
You're conflating two separate things.
My neighbor manages a chunk of the money of a giant SoCal biotech company. They have an 11-figures sum of investments. They told him to be safe, so he gets 6% annual return on his 10-figures portfolio.
They are considering whether repatriating some of that cash may be worth it for dividends and good will, versus buying and investing outside of the US. Waiting to see what D.C. comes up with, while raking in that 6%.
No billions ever sit at 0%.
(Score: 1) by khallow on Tuesday October 17 2017, @08:33PM (1 child)
Indeed. If that money is in Ireland, then they're paying 12.5% for a corporate tax rate. That's among the lowest [taxfoundation.org] in Europe.
(Score: 4, Informative) by bob_super on Tuesday October 17 2017, @11:31PM
> If that money is in Ireland, then they're paying 12.5% for a corporate tax rate.
Or 0.0001%, like Apple...
https://en.wikipedia.org/wiki/Double_Irish_arrangement [wikipedia.org]
And that's on the profits of the company and its investments, not on the total assets.