Raise top marginal rate to 40%.
Remove all existing tax credits for corporations. Keep current corporate rate at 35%….
Hire 35,000 additional accountants for the IRS….. Just do it.$35,000,000,000.
Allow dollar for dollar, a one time tax credit over these next two years, for every dollar spent on new construction here within the boundaries of the United States. A small business making $60 million this year, .. times the corporate rate of 35% stands to pay $21 million in corporate Federal Income tax. But with the “kavips deduction”, it instead decides to build 4 new locations with a start up cost of $5 million each…. and pay NO FEDERAL TAXES that year.
Those four new locations, each pump $5 million into their respective economies, which as it changes hands, gets taxed over and over and over again. If each unit has sales over $2 million, at a 30% payroll cost, they over the course of a year, pump an additional $660,000 into each local economy… As that $660,000 changes hands, it gets taxed over and over and over again as well….
So what do we have?
Whereas we had no investment under Republican Tax plans, (all that free money was going to Chinese investment since they worked for $1 a day), now under the kavipsian tax plan, we have in the first year, $21 million invested domestically, and a combined $2.6 million each year in brand new jobs, flowing out through the economy……
That $2.6 million if all in one state with a top rate of 5%, puts $131,000 into the state treasury that was not already there. At 2.5%, it puts $65,000 back into local government…..
If the corporation choses to do the same for a second year… then, those amounts get doubled!
Now, here’s the beauty of the kavipsian tax plan…. Imagine, every business, corporate or private, doing this exact same scenario simultaneously…
Ironically, by raising the rate on the amount of taxes we take from the wealthy and/or corporations, but allow them to deduct dollar for dollar what they spend that year on physical capital (something that gets built) we force businesses to choose between giving the Federal Government more of their money…. or keeping it themselves.
We all benefit when they keep it .. themselves…
kavips 
4 comments
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October 20, 2011 at 10:15 am
David Anderson
There you go thinking again. Give it up. No one wants ideas just sound bytes. 🙂
The truth is that I agree with half of your program. The tax credit for investment here is more important than rates. Everyone is focused on rates, but it is how much of a check the business writes not the rates that matters. I would make permanent and expand accellerated depreciation. Our depreciation schedule is killing us. I don’t see why we need to move the individual rates up. I disagree with that. If they went up to 2000 levels, that wouldn’t kill the economy. I am not saying that I favor it. I am just speaking objectively from an econometerics POV. The tax rate increase would slow growth, but if the deficit is reduced and money put into long term infrastructure and energy needs, the growth from having more capital available in the private sector instead of the feds absorbing 70% of available investment capital would at least offset the effect of the tax increase. The confidence that the U.S. is not going bankrupt would boost the economy as well. We could muddle back to 3.5% growth and create a few million jobs.
I think there is a better way. That is fundamental tax reform, regulatory simplification, sound banking principles, an all of the above domestic energy strategy with green and traditional energy development, fundamental health care financing reform and sound money policies. If we do that, 7% growth like Singapore, China, and the Asian rim can be ours.
October 20, 2011 at 2:07 pm
kavips
I disagree with your premise that no one wants truth, only sound bytes, even though I know it was made in jest.
I believe the only people who are pushing sound bytes these days, are the small group that makes them, and then gets themselves paid for making them, and then receives a commission every time they get played…… Since these same people often advise campaigns in their spare time, of course, it can be expected to be what they advise their candidates to do…
What America wants, is a candidate who steps up on stage, and just IS…. We haven’t had that since, well, maybe as far back as Gerry Ford? Although Reagan (I’m remembering him cutting brush on his ranch) was close. We’ve heard the bull, we’ve heard all spins on both positive and negative commercials, and we all know they are not the truth, just some advertising genus who gets his idea picked and sold…
What America wants is someone who can explain complex ideas in language the rest of us can understand…… and is a real person…. not a carefully crafted image who says nothing, does nothing, and stands for nothing, for fear of losing a single vote…..
October 20, 2011 at 2:26 pm
kavips
And back to taxes… We all agree that getting money invested back into physical capital is conducive to growth…
The argument that cutting taxes does that… is tainted by the historical evidence that cutting taxes sends money into areas of high returns… Primarily buying stocks, buying up another company, or building in a Third World Country. …
The argument that raising taxes stifles growth, .. is tainted by the historical evidence that when taxes get raised, people invest in physical capital… so they can say, “sorry, IRS, this is all I have… no profit this quarter…” Hence the growth years of 1948-73, 1993=2001….
I’m sure you go back to when as a young man just starting out, … the old men would tell you… “just go ahead and buy it… but save the receipt… and take it off your taxes…” That line worked. As young people, we bought….
The piece that is missing, I think, and that is the point I’ve been driving home, is… yes that tax cuts work to stimulate the economy, but only if they are targeted to this: YOU MUST BUILD IN THE UNITED STATES….
When someone complains that a giant corporation pays no taxes… because of loopholes… I think that is the way it should be… as long as that money was invested here in the USA… Why? Because if that money if pumped into the economy, it gets taxed as it passes through every cash register, as it gets paid to every employee…
It is a trade off along these lines… Yes, as a corporation it is your public duty to give some of what you earn back to the country that allowed that prosperity to come your way… You can either pay it up front in taxes, or you can expand your business here in the United States… Either way we benefit, and if you pursue the second path, you actually own what you invested….
The beauty if that these investment made here, tend to double a corporations sales.. Simply put… if you build a second factory, you’ll sell twice as much and make double what you did with one factory. If you build a third, then it becomes three times as much…. If you can grow yourself around taxes, after a while, you really don’t mind the small amount you are paying…..
Now if those actions are multiplied by every company, the economy roars, consumers spend, and a big chunk of our deficit has been taken care of….
Bottom line, it is imperative that money gets invested in the USA in the form of physical capital, not overseas. Tax code is an easy option that makes that happen…
October 20, 2011 at 4:02 pm
anonymous
Do rich republicans want more liveable wage jobs for Americans? If they did, there would be jobs aplenty. The rich have the money to create jobs, but why create jobs when they can hire illegals, hire lower pay temps without benefits or foreigners thereby withholding their power/money from Americans, furthering, improving, (by their prospective) the rich/poor disparity that serves them so well.
The richest, smallest class of Americans has figured out how to buy the common man’s
vote, thereby buying the government. Republicans bought a new step child, the non thinking, clueless voter and
weaned him on Homegrown Terror Tea. Hate is a powerful thing.
The most important question:
What would quickly bring down America, the world’s economy and the world’s
environment?
Homegrown terrorists in control of America’s government.
Power equals money equals power. In republican minds, power/money is
most almighty. (THAT’S what’s wrong with republicans.)
Beyond that equation, they do not care. Instead, they become threatened,
then angry, aggressive, dangerous if that equation is threatened. It is ALL about ‘their’
power/money, without which, they wouldn’t know how to deny, relate, campaign or
influence voters. The richest are about protecting their own interests, not looking out for the American public. The lowest earning tea republicans want to at least view themselves as being, above the lowly poor. Makes um ‘feel’ powerful too.
Interfere with 1% wealthiest power/money equation?
Invest in America? Not when there’s more power/money to be made here and elsewhere. For the wealthiest in the country, being the wealthiest, isn’t
tough; having everything, isn’t enough. Squeeze the middle class dry;
scoop up their ‘bargain basement’ remains – go for 100% financial control. Call it, being fiscally conservative; (it sounds better than endlessly, soullessly greedy.
All “other” Americans should remain powerless and poor as, it is a
‘republican’ flag, ‘their’ God, ‘their’ Constitution.
‘their’ country. What about the ‘other’ Americans? Whatever they have, republicans ‘want it back.’ (They told TP’s to say so. Ask Castle.) Deny the poor like pollution. What about poor
tea voters? Maintain and energize them on hate, prejudice, lies (so their ‘tea’
votes can be counted as needed.)
Who is it after all, who derived the most financial advantage from all
America had to offer? The wealthiest. Poor tea republicans are happy to survive on the crumpet crumbs.
As all the world had recently witnessed, those who ‘represent’ the wealthiest (republican politicians) would opt to throw America out with the bloody tea bath water, in order
for the wealthiest not to lose ‘their’ tax breaks and advantages, (power/money.)
The battle has just begun. It’s now is the streets. Will the richest agree to let go of any advantage, pitch in to help? Will republicans co operate in further maintaining a liveable debt ceiling? Deal with man made CO2 over production now surpassing worse case levels? Enact vital governmental regulations, support public education, create jobs; demand equal treatment, improve health care for all? No. No. No. No. No and No.
Opposite of what they say, rich republicans don’t ‘hate government per se, they just want to buy it, (using tea party votes,) so they can own it, control it. The middle
class can serve a government of/by/for the rich.
So who are the rest of these deprived, voiceless, unequal,
silenced, unemployed, broke, hungry, under educated, homeless, un rulely,
polluted, sick, ignored, country less, marginalized people populating America? They are the American powerless/getting poorer. Republicans like it. On the other hand,
every republican thinks he is the “true” American while
some still claim the President of the United States, isn’t. That’s the mindset you’re dealing with.
Can the top 10% who possess 80% – 90% of stocks, bonds, trust funds,
business equity, etc. hate their President, their fellow Americans, the
environment and expect that America will succeed? Of course not. Do they want America to succeed?
Republicans want themselves to succeed; 80%-90% worth, isn’t control enough.
Being the 1-2% of the nations wealthiest, isn’t wealth enough. The ultra rich refuse to
help out America, yet they think Americans should help them hold onto
their billions. (Hello clueless TP voters.)
One could stretch one’s imagination to think, the average American Tea Partier would have the same end game goals as an average Occupy Wall Streeter. But tea partiers, living in Denial, tend to be the dumbest Americans -the easiest to be ..bought…then sold … without them even realizing it. They would rally in the streets for the 1% wealthiest, but to save the American Dream – expect a no show.
A boss who is shooting down excellent ideas, needs to be replaced. That applies to republicans in Congress or at a filthy, poisonous E.coli kitchen.
How did the 1% of the wealthiest Americans, gain vote control of T. P. republican puppets?
Americans are in for a rough ride, as yesterday’s issues will not just be thrown out with the toxic tea bath waters.
Thinking Americans will remember Obama speaking of – “collateral damage.” A memory, a sense of history, will be brought into the voting booth.
Obama has made the issues perfectly clear and is working daily for economic recovery from the horrendous Bush years, battling persistent, republican destructive Denial, baby Denial, every step of the way. The real ‘leaders’ of the Tea People, are the 100% Greedy, (also known as the 1% wealthiest,) who through their agents, have bought and positioned themselves in control of high public places and offices, to enact the catastrophic opportunities that should have been recognized as extremist 100% Greed madness all along. The kind of madness only terrorists can enact – bringing down a nation.
How could the 1% wealthiest, destructive few, gain such overwhelming power over our nation’s political system intended for the 7 billion citizens? How was Mr. average TP vote bought, as TP sold average Americans (young, old, poor, average, upper middle America) down the river?
For what reason would an ordinary Mr. TP turn over his vote, to the privileged 1-2% few who lack nothing but a conscience and numbers for voting power? Homeland security looked away as the power seekers paid soulless mouth pieces to ranted hatefully,daily over the airwaves, Internet, at town hall meetings. Deadly Denial, with public hostility and loathing still caters to the fears and prejudices of common TP republicans fueled by Greed, Racism, Prejudice, Hate. Did the top 1% pull out all stops so that America would be saturated, trampled then divided and over taken? Are Tea Partiers finally exposed as resentful, jealous, hate filled republicans, tuning in to the propaganda, waving the flag, while turning out their vote against – their fellow Americans.
Another common citizen turned TP pulled the lever, bought and sold out, as another un American vote for – neighbor Denying neighbor. Fail, freedom, fail. Deny science, health, the climate, nature, and the nature of economic Greed of the 1% wealthiest power brokers. Deny the great nation we had become by working, battling together over the centuries. Deny our duty and ability to protect each other, educate, succeed and importantly, protect the future of generations and their quality of life on the planet: The Republican Tea Party became the Republican Party of Denial, the Republican Party of Greed, the Republican Party of Pollution, the Republican Party of Ignorance, the Republican Party for Poverty, the Republican Party of Health care denial, the Republican Party of – the end of the American Dream.
Drill, baby drill was chanted in unison in their halls, but Denial is the actual battle cry. Deny profits by pollution. Deny a hungry five year old a school breakfast; Deny school children who aren’t taught to think or compete, yet are pumped through a failed system. Failure, baby failure. Deny health care for Americans – Sickness, man, sickness. Deny gramma’s Social Security in her final years; Suffer, gramma suffer. Deny fair interest rates, bankruptcy duped consumer, bankruptcy. Deny fair banking practices, foreclosure homeowners, foreclosure; Deny clean energy – pollution for profits baby, oil wars; serve soldier, serve with your life. Deny American jobs. Deny that billionaires invest profits overseas; Profit 1% profit, is the Republican chant. Deny the destruction of your fellow American. Fail freedom, fail. Deny republicans, deny.
But wave that red, white and blue. No American manufacturing – as corporate elite are busy hiring overseas.So what. Vanished home values, robbed middle class savings; why care. Dropouts and scholars without jobs as republicans fight every offered solution. Not a problem. Crumbing cities, towns, bridges, highways, major infrastructure – Gridlock for the masses, gridlock. But look up to and look out for Mr. 1% wealthiest, as republicans are wooed and so ordered by Rush, Inc. – daily.
Mr. wealthy 1% must tend to his many bottom lines, estates, businesses around the world, five star meals and travel accommodations, previleged educations, security, private jets, etc.
Reminder for TP republicans. The 1% are the 1-2% of America’s millionaires, billionaires – who earn millions EACH tax year. Exactly how does a low class, middle class Tea Partier republican relate to that picture? Is it Greed, Denial, Prejudice and Hate that Rush et al have used to rally TP republicans against their own best interests in exchange for their vote?
Mr. ordinary, low class, middle class TP republican needs to think about the above issues that has turned his brain against his own best interests.
Before all the world, republicans toyed with the big plug – the one that contains the credit limit crisis. The one that will totally drain affordable interest rates, mortgages, bank accounts, infrastructure, educations, business start ups, energy advances, new jobs, economic recovery, affordable food. Republicans Deny everything that would improve average American lives; to the point of a complete government shut down, instead insisting on everything that would improve the lot of the 1%, the wealthiest of the wealthiest.
Why wonder why China is footing America’s debt, when Mr. 1% highest annual income earner Republican demands not to pay his fair share on his profits, holdings – to fairly contribute to his country’s success. Why will the 1% continue to refuse to create jobs for Americans? Profits baby, profits. Jobs are sent overseas on the cheap – as the 1% enjoy their tax breaks.The wealthiest have the tax break now, so where are the American jobs now? Has Greed, Denial, Prejudice and Hate so blind the average republican?
(One uses Tea Party and Tea Party Republican interchangably because they are of one and the same, the Republican ticket.) They created it, they own it.
When China says, no more credit America – and refuses to finance America, the 1% of America’s wealthiest (millionaires, billionaires) will manage just fine. They are the 1% wealthiest and will gain complete control, buy up America at bargain rates, as Mr. Tea Party Republican voters are the fools who would hand over the needed votes that would send America down the drain. Will the millionaires/ billionaires, bail Mr.poor TP out? Sure they won’t. Did the bailed out banks, bail average Americans out? Sure they didn’t. Were lost property values, lost savings, retirement plans returned to average Americans; – of course they weren’t. Were profitting corporations creating American jobs. No they weren’t. But one could become Mr. 1%’s servant. Who will work for $2, stand here. Now who will work for $1? The systems now in place to assist the drowning, will no longer exist for Mr. Expediter, Mr. empty TP roll. As Mr. TP has been willingly bought, he will be shipped down the river, his job, across the border and oceans to third world workers. When a republican votes like an empty Toilet Paper roll, it doesn’t leave a pretty sight.
Oh yes, clueless, sold out republican TP terrorist, always Deny baby, Deny. But realize, the 1% highest income earners,” never baby never, will include you – Mr. poor, average, foolish, spent TP roll.
The Denial, Prejudice, Greed and Hate won’t allow TPs to hear the shared complaints that Occupy Wall Street. But TP republicans will listen to the propaganda of the wealthiest republicans out to secure their vote. Average Americans’ failure, sickness, suffering, bankruptcy, foreclosure, financial losses, pollution, oil wars, are profitable for Mr. wealthy 1%. Yes, it is poor, dumb, soiled TP republican, who would give up his vote, for what the 1% wealthiest demands as his mind is dulled by the years of insults, prejudice, name calling, of the media loud mouths.
Drill, baby drill means Deny (pollution.) Profit, baby, profit is the real motive – even if the 100% Greedy take the country, the planet, the environment and civilization as we know it, down. Profit is almight to a republican.
Time for Mr. empty TP roll to clean up his act, realize it is Mr. TP republican and his vote (and future) that are being bought/sold, by the wealthy few.
Mr. 1% would rather see the country fail than pay an appropriate tax for the fantastic wealth, protection and advantages that our country, our ancestors, have afforded him. Mr. 1% would rather pay Rush et al to teach Mr. TP republican to hate a poor man, as Mr. wealthy 1% hoards the privileges, entitlements, unimaginable opportunities and tremendous prosperity that only the wealthiest know, enjoy and demand for the ‘rightful’ few.
Being republican, can never be right for America.
Republican solutions? Expect none.