[lbo-talk] WSJ prints Rush Limbaugh's "bipartisan" stimulus plan

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Thu Jan 29 16:00:11 PST 2009



>> Let's cut taxes, as I want, and spend more, as Obama would like.

It's shameful that when people say "cut taxes" they don't mean "cut payroll taxes" or "cut personal income taxes" -- they mean "cut *corporate* income taxes" ...

The only reason ever given is that the "corporate tax rate" (35%) is the 2nd highest in the OECD. But corporate taxes, as a percentage of revenues, has been dropping steadily for decades. And the US is way down on the list of OECD countries in terms of corporate income tax as a percentage of revenue.

How much more can they cut? Looking, for instance, 2005 (latest data available), we see:

. 5.67M returns . $66T in assets . $25.5T in revenue . $1.94T of net profit . $1.20T of taxable income (wow!) . $419B tax-before-credits . $312B net tax bill

In contrast, $1.1T was collected in personal income taxes; $771B was collected in "employment" (FICA, Medicare, etc.) taxes, $57B in excise taxes, and $25B in estate taxes.

Corporate income tax is about 13% of total revenues, and the net tax bill is about 16% of net profits.

I have never personally seen a tax cut.

/jordan



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