

The biggest telecommunications merger in U.S. history just received federal approval















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RE: Thank God for this merger
By encryptkeeper on 1/3/2007 9:52:30 AM , Rating: 2
Whoa there pal. Now that prices are where they are, you think lowering or even eliminating taxes on that corporation will bring lower prices? Hell no, a windfall like that would never be seen on the consumer side. Take gasoline for example. 7 years ago gas in my hometown was under a buck a gallon. Now that the oil companies know we will find a way to fork out 3 bucks a gallon, they'll NEVER let prices get close to that again. Besides, the government would levy those taxes on the common people to make up for the loss. The real problem with the government now is a catch 22. There are checks and balances for the checks and balances. Our government design is complex but also one of the best designed systems in history. But right now there is so much spent on making sure so little is spent that the circle will never end. DOn't you see? They CAN'T take away corporate taxes in the US or else big corporations would screw us more than they already are.

RE: Thank God for this merger
By AxemanFU on 1/3/2007 10:28:34 AM , Rating: 2
Our Tax code does suck though. It is FAR FAR FAR too complex, and riddled with loopholes that allow for deductions and breaks that are intended to provide a social influence. The tax system is used for social engineering. Paine and Franklin are correct: the power to tax is the power to control behavior. Then there's the complaince cost, and the grey and black economies encouraged by the tax system, etc. It could be much better, but noone has the guts or humility to revise it.

RE: Thank God for this merger
By Ringold on 1/3/2007 4:25:01 PM , Rating: 2
Two world-class economists (forget the name of the University behind them) recently published their analysis of a consumers propensity to invest, spend and earn additional income under two different tax systems.

Under the FairTax (a flat national sales tax replacing all current federal taxes), it was quite simple. Invest more, and work more.

Under the current tax code, the analysis was nearly impossibly complex. Definitely impossibly complex for a human mind, and extremely difficult without 'heavy iron' running the numbers through complicated custom models. Their conclusion was, if the consumer can even understand his own motivations for doing any of it, the results were "bizarre".

RE: Thank God for this merger
By masher2 (blog) on 1/3/2007 10:31:04 AM , Rating: 1
> "you think lowering or even eliminating taxes on that corporation will bring lower prices? "

Of course, and there are tens of thousands of historical examples to prove it. If a company can afford to lower prices and still make a profit, it will...or its competitors will.


Yeah, thats why gas prices have dropped here over a dollar a gallon from their highest price (dropped by double that if you count the Katrina price spike) :rolleyes:

The problem with gas prices is simple. We've refused to allow a single new refinery to be built in this nation for the past 30 years. We just can't meet demand...and no community is willing to allow a new refinery in their own backyard. Many companies have tried, and spent millions of dollars trying to get the thousands of EPA, state, and local approvals needed. So far only one has succeeded...and then it instantly wound up stuck in the courts, blocked by a suit from an environmental group.

RE: Thank God for this merger
By AxemanFU on 1/3/2007 10:36:21 AM , Rating: 3
Also, corporate taxes are not taxes on the corporations..which are made up entities. They are taxes on the shareholders of the corporation, which ARE individuals invested in the corporations. They are ultimately taxes on people, just like you and me. Your 401K, my IRA, your stock, my bonds. That may be a bit simplistic sounding, but that is what it ultimately boils down to. If you cut corporate taxes to zero, their profits would spike, but then they can afford to pay their employees more (which they will have to do to keep them from going to other companies that can ALSO afford to pay them more), make bigger purchases and do more business that will drive the economy, and they'd also have a LOT more room to drop the prices of their products and services to compete. They would start to undercut eachother in price, and eventually (or quickly) their prices would fall to the point where reasonable profit margins are back, due to price competition. This is basic economics 101. They can't conspire to keep their prices artificially high because that would be price fixing, a HUGE no-no. People go to prison and get huge fines for that.

Ultimately, taxes on corporations are simply hidden taxes on the investors and stockholders in that corporation.. i.e. you and me.

RE: Thank God for this merger
KUDOS to you!


