John Kerry Proposes to Cut Corporate Taxes

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Anonymous
John Kerry Proposes to Cut Corporate Taxes

Corporations don't pay taxes. They just add the costs to the price of their product, and we pay when we buy the product or service.The fastest way to drive jobs out of the state or country is to tax them, and raise the price of their products. Companies from locations with lower taxes will undercut their price, and take sales away until these high cost companies can't sell their product.

Anonymous
John Kerry Proposes to Cut Corporate Taxes

This is the smartest thing I've heard Kerry say so far!By NEDRA PICKLER, Associated Press Writer DETROIT - Determined to counter President Bush (news - web sites)'s effort to portray him as a tax-raiser, Democrat John Kerry (news - web sites) said Friday he would lower corporate taxes by 5 percent to promote job creation while eliminating tax incentives that sends work overseas."Some may be surprised to hear a Democrat calling for lower corporate tax rates," Kerry told an audience at Wayne State University. "The fact is, I don't care about the old debates. I care about getting the job done and creating jobs here in the United States of America." Kerry, speaking to Michigan voters who have seen unemployment spike during Bush's tenure, promised to create 10 million jobs in his first term. He said the first step would be eliminating rewards for companies that move overseas, calling it "the most sweeping tax law reform in forty years." Kerry said he would challenge a reluctant Congress and special interests to carry out the changes in international corporate tax law. The presumptive Democratic nominee, in making his overture to the business community, overrode the objections of some advisers who opposed the corporate tax cut on political grounds.[url=http://story.news.yahoo.com/news?tmpl=story&u=/ap/20040326/ap_on_el_pr/k...

ewv
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Re: John Kerry Proposes to Cut Corporate Taxes

Kerry's politics and leftist ideology does not permit him to seriously propose a real tax reform and he has not. Like the Augusta tax "reformers" there is always a shell-game gimmick to give the appearance of reform while keeping the tax game going. At best they shift taxes, and in the end only scheme to keep taxes going up.

quote:
He said the first step would be eliminating rewards for companies that move overseas, calling it "the most sweeping tax law reform in forty years."

But

quote:
...Current tax laws allow American companies to defer paying taxes on income earned by their foreign subsidiaries until they bring it back to the United States. If they keep the money abroad, they avoid paying U.S. taxes entirely.

In other words Kerry wants to extend US taxes into other countries (as a double tax?) in the name of "reform". As usual, tax advocates like Kerry think that the lack of higher taxes in any realm is an unfair "reward", and that "reform" means more taxes.Moreover, protectionism through tax penalties does not work; there are many reasons for foreign trade and this agenda would only encourage corporations with overseas operations to set up independent entities in legal rearrangements to get out of Kerry's tax reach overseas.His attempt to demagogue and manipulate international markets is no better than his desire to "outsource" foreign policy to France and the UN.

Thomas O
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Re: John Kerry Proposes to Cut Corporate Taxes

ewv--Very well said.

Roger S
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Re: John Kerry Proposes to Cut Corporate Taxes

Critics slam Kerry's new tax codeBy Marie Horrigan
UPI Deputy Americas EditorWASHINGTON, March 26 (UPI) -- A new corporate tax plan presumptive Democratic presidential candidate John Kerry offered Friday received swift condemnation from analysts and members of the business community, who charged it would drive jobs away, not create them."He asks some good questions and he points to some real problems in the corporate tax system, but he comes up with the wrong answers," said Chris Edwards, director of fiscal policy studies at the Cato Institute in Washington.In a speech at Wayne State University in Detroit, Sen. Kerry, D-Mass., introduced a tax overhaul plan he said would deal with the issue of corporate outsourcing and create 10 million U.S. jobs in four years.The plan addresses a complicated set of corporate laws. Companies with headquarters in the United States but with operations abroad currently pay the applicable local taxes but are given a deferment on U.S. taxes for money they reinvest overseas. Kerry's plan would rescind such tax breaks, which the campaign said would bring in $12 billion a year.To sweeten the deal, Kerry is also calling for a one-year "tax holiday" for companies operating abroad to "repatriate" funds from foreign facilities to the United States at a discounted tax rate of 10 percent.The revenue created from the increased taxes would be used to give tax credits to small-business owners who hire more workers.The final part of the plan would cut the corporate tax rate from 35 percent to 33.25 percent, an unusual step for Democrats. Throughout his campaign, Kerry has criticized Bush for what he said are failed economic policies that have led to the loss of more than 2.9 million private sector jobs. Kerry said the plan he presented Friday was the first in what would be a series throughout the spring to show how the U.S. economy could be recalibrated to create 10 million new jobs in four years."I'm not running just to oppose present failures, but to propose new policies," he said.As has become standard during a presidential election cycle marked by instantaneous reaction, President Bush's re-election campaign released a three-page response to the plan.The Bush campaign argued the plan's numbers don't add up, that it ignores the complexity of the global environment and that Kerry's own campaign officials know it wouldn't work.A Bush campaign official also told UPI that Kerry had voted more than once against measures in Congress that included the very provisions he is offering in his tax plan. "When there came an opportunity to do something about these issues, Kerry didn't take advantage of it," the official said. Edwards argues that Kerry's plan draws attention to major problems in the corporate tax code, such as an elevated tax rate, but comes up with solutions that would hamper the competitiveness of U.S. corporations."It puts the corporate tax in play, which I think is a good thing, but I don't think it works for his own political purposes," he said. "It's not wacky, it's just, I think, the wrong solution."Another issue, Edwards said, is that "there's no way this would get through Congress."Martin Regalia, chief economist at the U.S. Chamber of Commerce, agrees the measures would be detrimental to U.S. businesses.Although Kerry claimed "I am not protectionist," Regalia said he fits the profile perfectly. "Despite his protestations to the contrary, these particular proposals are 100 percent in sync with protectionist policies," he told United Press International.Regalia also argues the public is being misled about the state of the economy. The raw numbers are increasing -- household wealth and the standard of living are at an all-time high, he said -- but Americans don't feel confident about U.S. job prospects."It is that fear and insecurity on which Kerry is playing, not the facts of whether they're worse off or better off."The public assumes that foreign direct investment represents a major flow of cash draining resources that could otherwise create U.S. jobs, he said. "The idea that we're cannibalizing our resources by sending them abroad just absolutely isn't true," Regalia said, with U.S. companies investing $1 trillion in the U.S. economy and only $119.7 billion abroad.The issue is complicated, he said. "There are solutions, but it's not the kind of specific, instantaneous solution that people would like to see" -- the kind that Kerry is offering in his plan. Regalia's answer to the problem -- education and aid for the unemployed -- are the same ones trumpeted by the president. The country needs "better, more facile education" to train American workers to shift their skill sets to meet the changing job market, and for those already unemployed, "the wherewithal to be a little bit more benevolent" toward them, he said."You've got to put the problems in perspective," Regalia said. Revoking the tax deferment "will not create jobs in the United States. It just won't happen."Kerry spokesman Adam Abrams did not return calls for comment by press time.

Dave in NY
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Re: John Kerry Proposes to Cut Corporate Taxes

How will this impact (profit) the Heinz Corporation???"No Blood for Ketchup"

Anonymous
Re: John Kerry Proposes to Cut Corporate Taxes

Dave ~ Heinz moved 54 factoties offshore so JFK can squander his wealth.

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