tag:blogger.com,1999:blog-2098432983500045934.post4442254302957988704..comments2024-03-12T22:19:32.339-04:00Comments on The New Arthurian Economics: The Corporate Tax BurdenThe Arthurianhttp://www.blogger.com/profile/16501331051089400601noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2098432983500045934.post-62876276765112877642016-10-18T16:28:08.125-04:002016-10-18T16:28:08.125-04:00Hey O.T.
Yeah they can deduct interest payments, ...Hey O.T.<br /><br />Yeah they can deduct interest payments, because they pay them. Their taxes are reduced by about 25% of the interest cost (based on graph #1 <a href="http://newarthurianeconomics.blogspot.com/2016/10/the-corporate-income-tax.html" rel="nofollow">here</a>). So this is like the Federal government giving corporations a 25% discount on their interest costs (and on all the other costs they get to deduct from taxable).<br /><br />But the corporations still have to pay the interest, and it still makes their costs higher, and it still increases the prices of the products they sell.<br /><br />And they still pay more in interest cost than they pay in income tax.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-46255434364038246892016-10-18T14:10:39.064-04:002016-10-18T14:10:39.064-04:00Art
I and not a tax guy but aren't business ...Art <br /><br />I and not a tax guy but aren't business allowed to deduct interest payments from their tax bill?<br /><br />Oilfield Trashhttps://www.blogger.com/profile/16151172995826850192noreply@blogger.comtag:blogger.com,1999:blog-2098432983500045934.post-35537508258508789602016-10-18T04:13:20.577-04:002016-10-18T04:13:20.577-04:00And why is that? Perhaps because they're makin...And why is that? Perhaps because they're making money from each other's interest payments.<br /><br />Making money on money is not like making money by making output. Making output is good for the economy. Making money on money is only a cost.<br /><br />And obviously, the cost of interest is much higher than the taxes, and adds much more to the cost of output.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.com