Germany declares war! Reducing its corporate tax rate from 15% to 10%

Photo above - "Rick, after this is all over, Germany will be reducing its business tax to 10%. Perhaps you'd consider relocating your cafe' to Berlin?"

Half the people I meet (at least) believe that they will not be responsible for any part of America’s $37 trillion national debt. (That’s $100,000 per man, woman, and child) Their presumption is that because they personally pay little to nothing in federal income taxes, America will simply increase corporate taxes. Those are currently 21%. The uniformed paying zero personal taxes expect that corporations will “eat” the higher taxes, and NOT pass the cost onto us consumers through higher prices on merchandise. Bizarrely, they continue to cling to this fantasy after multiple rounds of Trump tariffs on all sorts of merchandise.

Okay, now the other shoe is dropping. Germany – the worlds 3rd largest economy after the US and China – is slashing corporate taxes from 15% to 10%.

Raise your hand if you don’t understand how this will encourage companies to abandon America and set up factories in Germany. Okay, a bunch of dropouts and Marxist have their hands up. Let’s move along.

Why does Germany (and much of the EU) have some of the lowest corporate taxes in the world? Other than luring American corporations, I mean?

Germany makes up the difference with sky high personal income tax rates. Their philosophy is that it’s much easier for a corporation to abandon a nation than it is for a middle-class family. The only families who migrate are either insanely wealthy gazillionaires, or the impoverished jobless seeking a fresh start in some place like the USA.

Most economists endorse this approach – don’t tax corporations to death, or they’ll either die, or migrate. If a nation is going to pass out entitlements to citizens like candy, then those entitlements possibly should be paid out of personal income taxes, so people will understand cause and effect. European citizens seem to grasp this concept more easily than the left wing of the US democrat party. And Europe is waaaay left of America.

Wait, it gets worse. Not only do corporations in America pay a federal income tax double that of Germany, they also pay state corporate income tax almost everywhere.

Go to the head of the class if you guessed that California has one of the highest corporate income tax rates – 9%. The total hit on a California company – federal and state combined – is at 30%. New Jersey, Illinois, and DC, come up the podium and get your runner up medals. You all have sky high corporate tax rates too.

What’s the point of this rant? Not to high-five Germany for its tax war against America. The problem for America isn’t so much the combined corporate and state tax rates. It’s that we’re in debt to the tune of $37 trillion even AFTER having some of the highest corporate and personal taxes on earth.

Thank your senators and congresspersons. They spent that money giving away EV rebates, experimental hydrogen factories to Exxon, buying absurdly expensive pentagon weapons, doling out crop price support – anything that might win them re-election or campaign contributions from single issue voters.

I’m just sayin’ . . .

Germany's new government launches a program to encourage investment and boost the economy

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exchrist · 31-35

So true. Personally sales tax corporate income tax and vice taxes are the best means to collect revenue. Cutting the military budget, politicains salaries, and minimizing tax cuts, and rebates; especially to the wealthy are the only feasible ways to get America out of debt. Legalize hemp en masse and extract petroleum oil from non psychoactive thc is another answer. Making hemp illegal got America into this mess and caused ww2.
All bc of corporate financing of the Marihuana Tax Act of 1937. Funded by Rockefellar oil.

SusanInFlorida · 31-35, F

@exchrist sales taxes are regressive (weigh more heavily on the middle class and poor). In that regard they are disfavored by economists and liberals.

and yet the political left in america uses sales taxes to a means of social engineering.

1 - gasoline taxes to encourage public transportation use

2 - liquor and tobacco taxes to curb consumption, rather than simply outlawing them

3 - new taxes on firearms and ammo

4 - electricity taxes to curb consumption, since the nation hasn't expanded generating capacity to keep pace with population.

exchrist · 31-35

@SusanInFlorida actually i agree sales tax is not a prefered option it is the current strategy. Shameful yes. vice taxes? Idk 1. weve curbed tobacco consumption, now we have too many post reirement age people working (double edged sword?). Instead People (especially the young) switched to designer drugs ( is that better?)
1. Gasoline taxes were to discourage inefficiency and a limp wristed effort to increase revenue to reduce traffic and encourage alternatives. Rather than cut wasteful military spending. Oversimplified.
Outlawing alcohol lead to illegal bootlegging and huge health problems. As well as criminal activity.
2. I brewed my own beer from the age of 15. Using only bread water and sugar. . . My friends and i would drink it in the woods every few weeks. No tax money for uncle sam. Fail.
3. Taxes on firearms and ammo good idea ppl will simple buy less. Bow and arrow might be fun throwing knives blow darts.
Id like more solar and wind efficiency is improving but yes we need more ectricity production.

SusanInFlorida · 31-35, F

@exchrist i'm not sure tobacco taxes deserve any credit for reduced use. there has been a constant monologue from the FDA and other government agencies about the dangers of tobacco. I'm watching one right now on TV. A public service ad featuring a woman in a hospital bed, half her jaw amputated, warning that tobacco can give you oral cancer.

if it wasn't already legal, tobacco would never be allowed. Wait . . . that's what people thought about pot too . . . and look where we're headed now.

exchrist · 31-35

@SusanInFlorida i agree tobacco tax may have "curbed" some use but compared to the lethality of opiates in street drugs maybe tobacco isnt so much of a big deal; You know? Die in 40 years; or die in the next 15 minutes.
And as you noted tobacco use is way down so revenue from taxing it isnt much. I think the drinking age ought to be lowered. Purely for the tax revenue. And given lyft uber rideshare and public transportation availability the drinking and driving justification that got it raised is less valid.

exchrist · 31-35

@SusanInFlorida the answer is agricultural petroleum oil extracted from the nonpsychoactive thc in hemp.
Disolved in alcohol (ethanol). Thc is alcohol soluble. Upon disolution it becomes a liquid hydrocarbon. When the ethanol is evaporated the solution becomes only 15% ethanol gasoline (E85). Prior to the "Marihuana Tax act of 1937"
gasoline was produced by agricultural hemp.
Prohibition of alcohol and the marijuana was justified by greedy capitalists that funded the demonization of the only competetion for "fossil fuel". So if we return gasoline to being an agricultural product. Everything else fixes itself.
300 barrells an acre until The Marihuana Tax Act of 1937 (purposely misspelled to delay it ever being repealed).
All to further the corporate interests of John D. rockefeller and Standard Oil.
Thats when America lost its way. And it inspired Germany (The Nazis) to ww2 (blaming the Hebrews for the resultant food shortages and higher prices because of increased fuel cost\shortages. (Must have been the jews!? Nope it was greedy America.)
Ah capitalism.
Because unsold newspapers were used as the filter in which hemp was held while alcohol was poured over it. The newspaper owner Herse (?) funded and published the smear capaign. Newspapers were the only media source at the time! Could you imagine?!
Its a problem as old as time;
Corporate interests!

SusanInFlorida · 31-35, F

@exchrist this sounds suspiciously like growing corn for ethanol to run our cars on.