One of the Reason Our Economy is Hurting.

Can some one answer this? If taxes are so high why are all these big companies continuing to make record profits especially in this economy. What is hurting is small businesses. That is where you need tax breaks these big corporations are on top of the world. These corporations seem to have enough money to buy all these politicians and put them in their pocket. So how are they getting taxed to much? Please stop defending these fat cats and start helping out the little guy. That is where you are going to get this country back on track.

You are right. Many corporations have that to get any capital money for investment it must be less than 3 years payback. This must include the 40% tax on the increase profit from the project. Therefore, if the taxes were lower, it would be easier to get approval for the projects. This is the type of incentive the corporations need to be able to send money our way. There is another factor which plays in effect here, too. Taxes are figured into the corporation cost to make a profit and are just passed onto the consumer,which ends up paying the taxes through the higher cost of the product. With lower taxes, or no corporate taxes, the cost of the product should drop due to competition. But this does put it on the people to pay higher taxes, but they save money because the products are cheaper. And the upside is corporations will provide more jobs and we will see unemployment drop significantly, unemployment taxes drop and we have a larger base for taxing, too.

lawdude, you missed my point here totally. I am talking about the infrastructural manufacturing, that builds the infrastructure of the country. China and the other countries cannot import these products, so they are partnershipping with corporation that are. These corporation only have a certain amount of money to invest, and the return on investment is higher there than here. It has nothing to do with percentages of GDP. To be able to entice the the corporations to be able to match the return, the corporate taxes need to be lowered. We have the 2nd highest corporate taxes in the world. And taxes really not paid by the corporation, but are passes along in the cost of their products, which makes the consumer the ones who actually pay for the taxes, any way. And when you have the corporation making money, they invest, expand and create jobs. The are not investing and creating jobs. Instead they are sizing back and trying to maximize the little bit of profit they can manage now. Many are not making profits, and therefore are not paying taxes. So I would rather they make profits hire more people than pay taxes.

I see your point but I'm not sure your premises and conclusions are right. The infrastructure building in the third world is financed by governments that hire U.S. corporations such as Halliburton. In the U.S. our infrastructure has been financed by government at the federal, State, and local level. In the 1930s, the U.S. government built TVA, Hoover Dam, and other public projects. In the 1950s, the U.S. financed the interstate highway system through a trust funded by fuel and excise taxes. Our resevoirs, bridges, tunnels, state and local roads have been financed by state and local governments through public bonds paid off by taxpayers and motorists. Those corporations awarded the contracts prospered and employed workers. Today, we're over-indebteded and governments can no longer afford to float public bonds at the same time our infrastructure is crumbling. Reducing our corporate tax rate is not going to incentivize U.S. multinationals to return home to invest in our infrastructure - not without government planning, financing, and guarantees against losses. Whether reducing corporate tax rates will lure corporations back home to invest in new manufacturing plants and equipment seems a dubious proposition since taxes are a small part of their overall cost to do business, the largest components being labor, material, and equipment costs.

I can't say to much more, but I have sat in meetings where the management shows us that this is what they are doing. I actual see it happening. The only way to get them back is to help them become more profitable, so they will spend more money to optimize their profits here in the US. Lower taxes will help. A few years ago they we spending more because the US was the big profit area. Now now, it is turning to the Asia and African markets. People don't understand they want to sell the 3 billion people in China and India, and not just to the 300 million in the USA. The Asia markets are taking off. I have a personal acquaintance who spend three years in China building a factory to sell stuff in China, not to build and ship to the USA, but to keep it there.

I figure these countries feel much better for themselves if they do much of the work themselves. I can see bringing Americans over as advisers, but not to let the United States and other wealthier countries just to put money into these poorer countries else what will happen is that it will result in making America poorer and the other countries wealthier. WAter does work so they could that to manufacture electirity.

Also, these countries have a lot of needs. Electrical generating plants, aggrigates and and cement manufacturing for roads and building. Water works. There is a lot these countries have to do to improve life over there.

Most of America is foreign owned. Ten years ago, corporations were making money, Europe and Asia was not, so the invested in the US. Now with them not making money have have a prime location of China and India which has over 3 billion people combines, the are after that market, and not the 300 million people in the US.

crossbones, I guess I did not explain it well enough. These countries are building their infrastructure. These jobs and products they manufacture are for their own consumption and building of their nation. China is import a lot of products, i.e. cement, iron and other essential. China has started partnering with the large corporations that manufacture these essentials and are building plants, in partnership with China, in order build the country up. These corporations are not going there for the cheap labor to make goods to export, but to sell the goods there. There are over 1.7 billion Chinese, only 300 million Americans. Ah, there is about 6 times as many Chinese to sell to than Americans. And everyone wants to be part of these markets.

There may be 6 times more Chinese than Americans but your average Chinese get paid a heck of a lot less. I still think they are their for slave labor. They can make their products extremely cheap there and then send the products back over hear and make a killing. While Americans try to figure out a way to pay off their mortgages, and school loans.