Kerry: I will create 10m jobs in 4 years...

[DKW 86 7,726]

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Kerry Calls for Corporate Tax Cut

Fri Mar 26, 5:48 PM ET

By NEDRA PICKLER, Associated Press Writer

DETROIT - Determined to counter President Bush (news - web sites)'s effort to portray him as a tax-raiser, Democrat John Kerry (news - web sites) said Friday he would lower corporate taxes by 5 percent to promote job creation while eliminating tax incentives that sends work overseas.

"Some may be surprised to hear a Democrat calling for lower corporate tax rates," (Corporations dont pay taxes, Econ 101 ) Kerry told an audience at Wayne State University. "The fact is, I don't care about the old debates. I care about getting the job done and creating jobs here in the United States of America."

Kerry, speaking to Michigan voters who have seen unemployment spike during Bush's tenure, promised to create 10 million jobs in his first term. (Great, he says Bush lost 2.3M, 3M or whatever he has blown the number upto now. I have a question. If we have even 3M unemployed, where and how is going to creat 10M more jobs? ) He said the first step would be eliminating rewards for companies that move overseas, calling it "the most sweeping tax law reform in forty years." (Great, me and the rest of America would just love to see him and Teh-Ray-zah bring those 57 factories they own overseas, 72% of Hienz btw, back home to America!)

Kerry said he would challenge a reluctant Congress and special interests to carry out the changes in international corporate tax law. The presumptive Democratic nominee, in making his overture to the business community, overrode the objections of some advisers who opposed the corporate tax cut on political grounds.

The plan would face a series of obstacles should the four-term Massachusetts senator defeat Bush in November, starting with politically powerful corporations that benefit from the overseas tax breaks he wants to scrap.

Kerry also may be second-guessed by Democrats who would prefer to transfer his plan's savings to more targeted job initiatives or programs that benefit middle-class voters.

Kerry settled on a blend of loophole-cutting populism and business-friendly moderation, casting his package as jobs-producing tax reform. Polls show jobs are the top issue with most voters, and Kerry is viewed as best suited to improve the economy. Terrorism is the No. 2 issue, and most voters say they trust Bush most to protect the nation.

Though the economy has shown signs of strengthening, more than 2.2 million jobs have been lost since Bush took office. (He's gonna create 10M jobs though, I guess Mr. Kerry wants some of us to work more then one job, that way the working men and women can pay for his tax hikes.)

The centerpiece of Bush's economic plan is the across-the-board tax cuts he pushed through Congress, which the president believes will help businesses create jobs. Bush has warned voters that Kerry would raise taxes and recklessly spend their money.

White House spokesman Scott McClellan dismissed Kerry's proposal as a "tax shell game" that he said would not address the issue of jobs going overseas.

"This is nothing but a reshuffling of the tax code and a political shell game and can't erase the fact that John Kerry's record is one of raising taxes some 350 times," McClellan said.

The initiative, which Kerry said will pay for itself , is part of his overall economic plan to lower the cost of health care and energy, increase investment in education and reduce the federal deficit. Kerry has not fleshed out the cost or other details of his overall spending , but the Bush campaign has made a series of assumptions to conclude he would need to raise taxes by at least $900 billion, a charge the Kerry campaign disputed.

Kerry unveiled the first plank of his economic package in Michigan, a politically important state where 6.6 percent of workers are unemployed. Many of the jobs moved abroad. (Wonder if any were with Heinz? )

"If a company is torn between creating jobs here or overseas, we now have a tax code that tells you go overseas," Kerry said. "And that makes no sense. And if I am president, it will end as soon as possible."

Current tax laws allow American companies to defer paying taxes on income earned by their foreign subsidiaries until they bring it back to the United States. If they keep the money abroad, they avoid paying U.S. taxes entirely.

Kerry would require companies to pay taxes on their international income as they earn it rather than being allow to defer it. The new system would apply to profits earned in future years only, not retroactively. (And just how we are going to account for all this and implement this may tell you that it is all a joke.)

He also would allow companies to defer taxes when they located a business in a foreign country that serves that nation's markets. A U.S. company seeking the tax break could open a car factory in India to sell cars in India, for example, but could not relocate abroad to sell cars back to the United States or Canada. (Again who is going to insure that all this done on the up and up? What if we sell them to Hertz or something and then resell them back in the US?)

Kerry's campaign estimates that the change would save $12 billion a year. The savings would be used to reduce the corporate tax rate from 35 percent to 33.25 percent. That amounts to a 5 percent reduction in the rate. (Corp taxes are a joke. Corps dont pay taxes, those who own stock pay the taxes in reduced dividends, reduced net profits, etc. The Corp is just a holding company for shareholders.)

More than 99 percent of companies paying corporate taxes would see their tax bills lowered, the campaign says. But the 1 percent paying higher taxes are some of the nation's biggest and most powerful.

"I know how tough their lobbying will be and so do my colleagues in Congress," Kerry said. "But I believe that's why we have elections in America — so that the people can set us on a new course."

Advisers inside and outside the campaign debated whether to use the $12 billion to cut corporate taxes or target it elsewhere. Some wanted a robust tax credit for employers who create jobs. Kerry opted for a scaled-down version of that initiative. (Remember, we never heard how he intends to create 10M new jobs, just a really weak outline about a few ideas he has.)

[TexasTiger 13,556]

"Some may be surprised to hear a Democrat calling for lower corporate tax rates," (Corporations dont pay taxes, Econ 101  )

If you were taught that you should get your tuition money back.

[DKW 86 7,726]

Let me Splain it to you...

Corp Now:

Revenue of $1M

Taxes of $300K

Costs of $300K

Net Profit $400K

Reserve Cash $200K

Dividends to Shareholders $200K

Corp After Tax Increase:

Revenue of $1M

Taxes of $400K

Costs of $300K

Net Profit $300K

Reserve Cash $200K

Dividends to Shareholders $100K

Corp After Tax Increase Alternate:

Revenue of $1.1M (Tax increase passed on to Customers.)

Taxes of $400K

Costs of $300K

Net Profit $400K

Reserve Cash $200K

Dividends to Shareholders $200K

Therefore, in the truest sense of the words, Taxes are not paid by Corps, just Shareholders or Customers. They just pass the money on.

[Tigermike 3,425]

Wait a minute I thought the dems position was that tax cuts were not good?

Kerry told an audience at Wayne State University. "The fact is, I don't care about the old debates. I care about getting the job done and creating jobs here in the United States of America

."

What he really said: "I will say anything to anyone, anywhere so you will elect me!"

in making his overture to the business community, overrode the objections of some advisers who opposed the corporate tax cut on political grounds.

Kerry is beginning to ignore his advisors and the democrat party. If he is cozeing up to business, how will his supporters in GreenPeace, Siera Club and PETA react?

Polls show jobs are the top issue with most voters, and Kerry is viewed as best suited to improve the economy. Terrorism is the No. 2 issue, and most voters say they trust Bush most to protect the nation.

If this is true, the dems have done a good bu scandelous job of getting the war on terrorism off the front burner.