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Comment by Twirrim | Hacker News Reader

Yet another attempt to shift tax burdens to the working class. Yay. (/s if that wasn't obvious)

The tax burden in the US already is mostly on the working class. Corporate tax rates were low and were reduced further during Trump's first term - and Biden made no attempt to raise them.

One should also remember that low minimum and median wages are "pre-burdening" the working class, i.e. constitute a different form of tilting the distribution of economic power, and access to goods and services, away from workers. And minimum and median US wages are quite low relative to the wealth of the US as a whole.

> The tax burden in the US already is mostly on the working class.

not really

https://www.federalbudgetinpictures.com/do-the-rich-pay-thei...

https://taxfoundation.org/research/all/eu/taxing-high-income...

The first link ignores payroll taxes because it doesn't paint the same picture. The second link seems to show the US tax rates are significantly lower for the upper echelon compared to other first world countries.

Whatever the "rate" is, it's largly mute.

The labrynth of deductions, exeptions and other tax havens for the higher echelons of the income brakets makes the listed rate pretty meaningless.

I was more pointing out the second link does nothing to support his statement.

Increasing corporate taxes wouldn't necessarily shift the burden off the working class (though it might). Individuals react to taxes by reducing consumption of 'luxuries', whereas corporations don't experience luxuries, so increases in expenses (including taxes) cause increased prices, reduced wage expenses, reductions in dividends, or reduced capital. Increased prices and reductions in wages (either pay cuts or layoffs) are the most frequent reactions to tax increases, as investors have international alternatives, and so demand maintenance of the value of their asset.

> The tax burden in the US already is mostly on the working class

Blatantly incorrect. 89% of income tax revenue comes from families making $120k or more.

> Corporate tax rates were low and were reduced further

Corporate income tax is a side show. Most money that doesn't get taxed will get paid out either as purchases, salaries, or returned to investors. So either a sales tax, a personal income tax, or a capital gains tax. So a large cut to the corporate income tax only has a small overall effect on the overall tax burden.

> 89% of income tax revenue comes from families making $120k or more.

which are still mostly working class, i.e. their participation in the economy is through the sale of their labor power for a salary.

> Corporate income tax is a side show. money ... paid out as purchases... returned to investors...

So, not a side show then.

Biden made several attempts to raise them, he pushed and got a corporate minimum tax. He got a global minimum corporate tax rate as well.

I keep seeing this. Everyone, before you comment on something, maybe check to make sure your understanding of laws/events is actually anywhere near true before making definitive statements. This is how disinformation works.

https://www.nytimes.com/2023/09/07/business/corporate-minimu...

https://www.washingtonpost.com/business/2023/07/03/global-mi...

“On September 12, 2024, the Department of the Treasury (the “Treasury”) and the Internal Revenue Service (the “IRS”) issued long-awaited proposed regulations (89 FR 75062) (the “Proposed Regulations”) on the application of the corporate alternative minimum tax (the “CAMT”), which was enacted two years ago as part of the Inflation Reduction Act (“IRA”). In general, the CAMT imposes a 15% corporate alternative minimum tax on the adjusted financial statement income (“AFSI”) of certain large corporations for tax years beginning after December 31, 2022.”

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