Republican Crowd Cheers As Tea Party Rep. Labrador Condemns Corporate Tax Dodgers

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Republican Crowd Cheers As Tea Party Rep. Labrador Condemns Corporate Tax Dodgers
An unlikely scene emerged at a Republican conference Thursday afternoon: a tea party congressman deplored corporate tax-dodging, and the conservative audience responded with cheers.

Freshman Rep. Raul Labrador (R-ID) spoke to the GOP crowd yesterday at the Western Republican Leadership Conference. Though the majority of his speech echoed standard Tea Party rhetoric, Labrador deviated from a discussion of Republican tax philosophy to condemn corporate tax cheats. Labrador said, “I believe that it is fundamentally unfair that companies like GE are making huge profits and not paying taxes.” The Republican audience applauded Labrador’s criticism:

LABRADOR: When people scream about Republicans being unwilling to raise taxes on the rich, they’re actually partly right. We don’t want to raise taxes on anyone. Not just the poor, not just the middle class, not just the rich. We don’t want to raise taxes on anyone. But we do believe that everyone should pay the taxes that are assessed to them and not find ways to avoid them through accounting tricks. I believe that it is fundamentally unfair that companies like GE are making huge profits and not paying taxes. (Applause)

Watch it:
http://thinkprogress.org/economy/2011/10/22/349781/raul-labrador-corporate-tax-dodgers/

Thursday’s scene displayed just how fed up Americans of all ideologies are with corporate tax cheats. With polls showing more than three in five Americans supporting increasing taxes on corporations and millionaires (including two-thirds of Republicans), perhaps outcries like these — even among conservative audiences — will become more commonplace.

[ChairmanAgnostic]

1. We can thank OWS for this change in thinking.

They realize that our message is stronger than their message.

[Schema Thing]

5. oh please. They cheered because he said "GE" and Obama's job czar

is the head of GE.


They. do not. give.one.shit about corporate tax dodgers.

[Fuzz]

21. DING!

[proud2BlibKansan]

2. A republican acquaintance admitted this to me just last week

He said he could agree with Democrats that the rich and especially the corporations needed to pay more taxes.

[Chih]

3. Proving that they know very little about running a business.

Widget Factory Budget Report

Direct Costs

* Material -------------- $100
* Labor------------------ $100
* Labor Burden (30%)----- $ 30
* Equipment-------------- $100
* Subcontractors--------- $100

Subtotal----------------- $430

* G&A (15%)-------------- $ 65
Subtotal----------------- $495

* Profit (10%)----------- $ 50
Subtotal----------------- $545

*Taxes on Profit (35%)--- $ 18

Consumer Cost for Widget------------ $563

Consumer Cost for Widget w/o Tax --- $545

[Bonhomme Richard]

4. Using that logic then they shouldn't be taxed at all. n/t

[Chih]

11. That is not what I am saying at all. And I am not denying that corporate greed exists.

I am simply demonstrating that taxes on business are born by the consumer.

[safeinOhio]

19. No they are not.

Corporate income tax is base on year end PROFITS, not cost. If they make more money, get a higher price, they pay more tax. Now if they get by with very little profit they pay hardly anything in taxes. Either way, cost do not figure in taxes. Taxes depend ONLY on profits.

[Chih]

24. Indeed, they are...unless I am the only one that includes a line item to account for taxes.

While it is true that taxes are based on year end profits, businesses realize profits (or losses) on a quarterly or project basis. Hence, the payments that businesses remit to the IRS come directly from revenue received from consumers, which includes all costs, (including taxes) associated with providing a product or service.

[safeinOhio]

8. Price has nothing to do with cost.

Basic econ 101.
1. Supply and demand

2. What the market will bear.


Global Motors builds a car in US and charges $21,000.
Builds same car in Mexico with 1/3 labor cost and lower taxes and with 1/3 labor burden- Cost of same model, $21,000.

[Chih]

13. However, the car built in Mexico is subjected import tariffs,

which equalizes those costs with US manufactured cars.

Nevertheless, your Econ 101 points are valid and would result in lower costs to the consumer if not for the tariffs.

[safeinOhio]

16. NAFTA import tax on Mexican cars

is 2.5%. Hardly equalizes prices.

[Chih]

25. Fortunately, I do not have to deal with such complications as NAFTA and tariffs.

However, I can state without equivocation, that my costs have a direct impact on the final price.

[Generic Other]

9. proving you know little about running a society

Taxpayer cost for bridges, highways, schools, military, social programs --- $563

Taxpayer cost for bridges, highways, schools, military, parks, social programs w/o taxing the Widget Company --- $1000

That's just a guesstimate.

[Chih]

27. Fortunately, I don't have to worry about running a society...

I have my hands full with trying to run my own life and haven't the time, nor the inclination, to try to run anyone else's.

[Angry Dragon]

12. What is G&A??

[subterranean]

15. G&A = General and administrative expenses

[Chih]

17. General and Administrative...for simplicity I didn't include overhead, which is also an

indirect business cost.

G&A refers to the portion of indirect costs that apply to the whole business; whereas overhead costs apply to a specific portion of a business.

[louis-t]

23. Chances are, your little company doesn't pay

any where near 35% tax on profit.

[Chih]

26. That is true, and in this economy, profits are slim; thus, taxes on profits are slim.

FYI, I pay 15% on the first 50k, 25% on the next 25k, 34% on the next 25k. I will not have to worry entering the next bracket this year.

[Kingofalldems]

29. So you have your own business?

[louis-t]

30. So, you won't be hiring no matter how many tax breaks you get?

[jimlup]

6. The Tea Party Republicans are putty in the hands of anyone willing to manipulate their opinion

These people are not particularly bright and certainly do not have sophisticated political positions. Just sayn'

[sixmile]

7. It's a cheer for the Flat Tax

A far right-sanctioned tax hike on the working class.

The teabaggers couldn't possibly be turning left.

[OHdem10]

10. To be fair, GE did have huge losses which they could legally

write off.

Hearing a Republican slam their Corporate Masters just
sounds duplicitous or down right two-faced. They get
out and slam GE while in the the background they are
handing out goodies and protecting Corporate Interests.

[southernyankeebelle]

14. Why is it always GE they are after? Why not the Koch or WalMart families?

[Lint Head]

18. Okay. Is this a conscensus or hijacking from the Tea Baggers?

[deacon]

20. Shouldn't they be proud of the tax dodgers - they hate taxes don't they? n/t

[MedicalAdmin]

22. Cue: pitch for flat tax. n/t

[Politicalboi]

28. GE = MSNBC

That's probably the heart of the matter.