Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.2 9/18/84; site amdahl.UUCP Path: utzoo!utcs!lsuc!pesnta!amdcad!amdahl!ems From: ems@amdahl.UUCP (ems) Newsgroups: net.legal,net.taxes Subject: Re: Corporate income tax Message-ID: <1229@amdahl.UUCP> Date: Mon, 4-Mar-85 20:58:21 EST Article-I.D.: amdahl.1229 Posted: Mon Mar 4 20:58:21 1985 Date-Received: Wed, 6-Mar-85 00:43:02 EST References: <2748@dartvax.UUCP> <445@ahuta.UUCP> <399@lsuc.UUCP> <110@styx.UUCP> <319@mhuxm.UUCP> <683@whuxlm.UUCP> <461@lsuc.UUCP> Organization: Circle C Shellfish Ranch, Shores-of-the-Pacific, Ca Lines: 45 Xref: utcs net.legal:1488 net.taxes:693 > By the way, there's been a lot of criticism of corporate tax rates > in this group. What good does taxing corporations do? They pay > their taxes out of income, you know, which comes from the consumers > who buy their products. Individuals pay all the taxes in the end. > Not quite so. Lets say that a coporation from a foreign country comes here and mines silver. They then sell some of the silver to fund the operation and take the rest back to their home land as 'profit'. They are a socialist country and these funds go into the national account. Should they not pay a tax for the privilege of taking our natural resource for their own use? In this case a foreign government is the tax payer. This argument can be generalized in several ways. The first is to say that the socialist government is in fact a set of stock holders. In that case, the 'individuals' paying the tax are not citizens of our country. The next is to say that yes, the stock holders can be anywhere in the world, even here. This still shows the tax comming from a (supposedly) more powerful group for the right to exploit the national heratage or minerals. The final generalization is to say that it is not silver, but instead is a resource of some other kind. Beach front property in California, wharehouse space in New York. Still, you are taxing the entity (company == stockholders) for the use of their share of public resources and facilities (police, fire, dirtying the water and air) etc. At this point you can see why many third world countries do not greet the corporate world with open arms. In we come to monopolize the sources of wealth and export the gain to our own shores. (In some of their eyes...) While we talk of making jobs and building industry. In an international economy there is a need for corporate taxation. Even within our own borders, tax on coporations can communicate to them the true costs to society of their actions. (You make the polution, you pay to clean it up and figure the cost into your profit equations...) E. Michael Smith ...!{hplabs,ihnp4,amd,nsc}!amdahl!ems Computo ergo sum The opinions expressed by me are not representative of those of any other person - natural, unnatural, or fictional - and only marginally reflect my opinions as strained by the language.