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Originally Posted by Xion Valkyrie
Well, post tax on that $200k combined salry would be something like $130, if they're sending both kids to private university or even an out of state public, that's $80,000-100,000 on tuition alone. Leaving $30k to pay for the mortage and other living expenses. In the US tuition is not tax deductible, so they are paying the full amount after taxes. Living expenses and housing costs vary quite a bit by region too.
Of course, if you're making $200,000 a year and not sending any kids to college, then you'll be pretty well off.
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They don't
need to send their kids to the fancy-shmancy Yale, they could send their kids to the pretty much as good local public college for 10,000 a year each. That extra cash they're spending on college is a luxury they can afford to not pay. Besides, each kid is only going to be in College for 4ish years MAX. The rest of the time that expenditure isn't there...
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If you lower corporate taxes, you'd need to raise corporate taxes on offshore profits, as well as close a ton of tax loopholes they use. Otherwise, they'd just pay less tax on the profits they are making domestically and continue abusing offshore profit loopholes.
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One of the reasons they go through all these loopholes is that the corporate taxes are
unreasonably high. I also don't think they should necessarily tax all offshore profits. For instance, the US should only tax Coca Cola's US based profits. The profits it makes in China should be taxes by the Chinese etc.
The issue is that they shunt their profits using artificial wrangling to other countries with almost no taxes, so it appears that the US operation makes no money. That kind of thing isn't on. We're getting to the stage where almost all the worlds companies are being based out of the bahamas!
Perhaps we should abandon taxing companies directly altogether, and instead focus on the stockholders and employees. And if wealthy individuals want to have their residence listed as in another country, well that's another problem! But I suppose you could start by taxing their american assets, and also tax stuff like Stocks a bit more...