John Ransom

Canetoad wrote: Let's see, Corporate tax receipts as a share of profits are at their lowest rate in forty years. Somethings got to give and it shouldn't be the middle class.- World Begins to Heal with Taxes on Rich January 1st

Dear Comrade Mr. Toad,

Did I ever tell you how much I loved your Wild Ride at Disney when I was a kid?

I really did.

You are on to something here. Of course, you’re liberal and the fact that you have a point is accidental and unintentional.

But you have made an effective case why tax rates on corporations should be lower, rather than higher.

It’s true that corporate tax receipts as a percentage of GDP are smaller than they used to be. But the graph from ThinkProgress that you are likely talking about shows 2009 numbers. That was the height of the recession- fair enough- but then they go on to say that profits are at a record high today.

That’s not quite an apples to apples comparison; not even apples to bananas. It’s more like apples to onions. Profits for today can’t be compared to tax receipts for 2009.  

Now if you are talking about the report from February that’s shows corporate taxes at a 12.1 percent effective rate, that’s all Obama and the stimulus bill that he and the Democrats championed:

From Time Magazine:

The story is complicated, but the biggest factor in the recent collapse in corporate tax receipts appears to be a set of tax breaks built into recent stimulus efforts.

John Ransom

John Ransom’s writings on politics and finance have appeared in the Los Angeles Business Journal, the Colorado Statesman, Pajamas Media and Registered Rep Magazine amongst others. Until 9/11, Ransom worked primarily in finance as an investment executive for NYSE member firm Raymond James and Associates, JW Charles and as a new business development executive at Mutual Service Corporation. He lives in San Diego. You can follow him on twitter @bamransom.

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