Tax Justice

[kmarinas86]

I propose that companies that provide employees with higher wages in their field should have lower corporate tax.

 

I propose that companies that provide employees with lower wages in their field should have ordinary corporate tax.

 

Any form of charity increase by a company, I think, should result in a reduction in corporate tax that goes BEYOND THE COSTS of that increase in charity.

 

This system will be based on a ranking of charity that compares companies within a given field.

 

Let's see how far they could take this. A new way of competition!

 

Conservatives will finally like increasing their charity to the poor because you could give yourself lower tax rate by doing so.

 

Democrats will finally like lowering their taxes because they do it in order to help increasing the wages of poor people.

 

Everybody wins!

 

Normally, you would have to increase taxes to help the poor people - NOT TRUE IN THIS CASE!

 

The power to lower your taxes by increasing your charity to others - and lowering them beyond the costs of the charity (that is the only thing I know that will solve the problem of the economic disequilibrium that currently exists).

[kmarinas86]

Discussions on this idea:

 

The first and rowdiest. This was my practice:

http://uplink.space.com/showflat.php?Cat=&Board=freespace&Number=525329&page=0&view=collapsed&sb=5&o=0&fpart=all&vc=1

 

Better discussions:

http://physicsforums.com/showthread.php?t=124940

http://www.bautforum.com/showthread.php?t=43615

[learnin to learn]

hmmmm sounds good to me!

[TheBigDog]

Conservatives will finally like increasing their charity to the poor because you could give yourself lower tax rate by doing so.

 

Democrats will finally like lowering their taxes because they do it in order to help increasing the wages of poor people.

 

The power to lower your taxes by increasing your charity to others - and lowering them beyond the costs of the charity (that is the only thing I know that will solve the problem of the economic disequilibrium that currently exists).

You are confusing charity with government entitlements. Conservatives are opposed to mandated charity in the form of taxes as a method wealth redistribution. While this is a primary goal of liberals who believe there is an inequity that needs to be fixed.

 

You will find that conservatives are as charitable personally as their liberal counterparts. But it is part of the conservative culture to do such privately, where in liberal culture you personal charity is held up as a public badge of honor showing your status as a humanitarian.

 

As for your idea, I think it has some merit. I am a proponent of letting corporations deduct all of the salaries they pay to citizens and legal residents of the country from their taxes. This gives them an incentive to report the salaries they are paying (as opposed to paying people under the table to avoid the tax system) and tips the balance in favor of domestic employment as opposed to employment overseas.

 

Building an envoronment that promotes employment will do more for the poor than giving them money for being poor.

 

Bill

[kmarinas86]

s=sales

a=expenses

b=extra wages and salaries under new system (according to it's superiority vs. competitors in the same business and area (i.e. this company's $/hr - competition's $/hr))

T=corporate taxes normally (estimate) > 0

t=corporate taxes with new system (estimate) > 0

f=factor by which the company gets their money back

m=money before

M=money after (estimate)

 

T=.35(s-a)

t=.35(s-a-:)-b*f

M=m+(s-a-:shrug:-.35(s-a-B)+b*f

 

In the situtation that M remains the same after taxes when the company increases its payroll in the new system when compared to M before taxes in the old system - i.e. M=m+(s-a).

b+.35(s-a-B)=b*f

1+(.35/B)(s-a-B)=f

p=s-a-b=profit the company would normally have before taxes if they paid their employees extra given the new system

1+.35(p/B)=f

 

A higher value of f will support a higher profit-to-extra-payroll ratio. Thus a higher f will give more power to the company to spend money in things other than the payroll. A lower f means that more of the money goes into extra wages and salaries. The key then is finding suitable values for f. Companies with tough international competition and low, but existing, profits will probably prefer higher values of f (e.g. car companies). Companies which initially have low wages and salaries but lack foriegn competition may prefer lower values of f (e.g. grocery stores).