This is a discussion on GM to open factory in China within the Off Topic & Humor Discussion forums, part of the The Back Porch category; Originally Posted by Aimless On a side note,not everyone wants to tax the rich so to speak.But when an avg joe pays 35% of income ...
To correct another Tax "story":
Dividends are taxed at 15% because they are paid out by corporations using after tax income. I.E. those are after tax dollars which are accumulated after a 35% corporate tax. So that $1,000 of income is taxed first ($350) at the corporate level, and $650 is paid out as a dividend taxed at 15% ($97.5) so the total tax on that $1,000 is $447.5. That is why the whining about a 15 or 20% rate is so disingenuous. That $1,000 was taxed at 44.75%
Also don't forget Inheritances are given after a 50% Estate or Death Tax Rate, and those dollars are accumulated AFTER income taxes were paid on them. Trace $1,000 like this:
Corporation earns $1,000 pays $350 tax
Corporation pays $650 Dividend
Individual receives $650 dividend
Individual pays $97.5 tax
Individual dies and pays 50% Death tax on $552.5 ($650 - $97.5=$552.50) Tax = $276.25
Heirs receive $276.25 out of original $1,000 in earnings, governments keeps $723.75.
Total tax burden WAS 72.375% plus or minus
Now.........back to our regularly scheduled programming..............
Buy Chrystler or Ford, vote for different elected officials, enjoy your life.
So then if dividends are taxed at 15% because a company alrdy payed taxes on that money,what is the difference between that and an avg joes pay.A company charges 195$ an hr for joe to be on the job and he's payed at 50$ an hr.He should be taxed less because the company is being taxed as well for the 195$.I don't know what kind of link is wanted for the numbers above,you can use his 15% if you feel that's closer.
So you are saying my example is not true,or rocks numbers are not true?Could you be a little more specific about it.Cause we like to be specific here on DC.
The company charges Joe out at $195 per hour, and pays Joe $50, so the net earnings on Joe's hour is $145, ignoring other costs.
The company pays 35% on the $145, or $50.75, leaving the owners $94.25 to re-invest or pay out as dividends. If paid out as dividends, then the owners will pay about $14 in tax on the $94.25, so the owners will have paid $64.89 in total tax.
Don't confuse Joe with the owners - you are comparing apples and oranges. In this example Joe would pay about $17.5 on his $50 in earnings IFF taxed at 35%, but to be honest, it is probably much less.
Here are the actual tax rates by income level:
Single Filing Status
10% on taxable income from $0 to $8,500, plus
15% on taxable income over $8,500 to $34,500, plus
25% on taxable income over $34,500 to $83,600, plus
28% on taxable income over $83,600 to $174,400, plus
33% on taxable income over $174,400 to $379,150, plus
35% on taxable income over $379,150.
Married Filing Jointly or Qualifying Widow(er) Filing Status
10% on taxable income from $0 to $17,000, plus
15% on taxable income over $17,000 to $69,000, plus
25% on taxable income over $69,000 to $139,350, plus
28% on taxable income over $139,350 to $212,300, plus
33% on taxable income over $212,300 to $379,150, plus
35% on taxable income over $379,150.
I am sorry I pulled us off topics, and if ya'll want to start a new thread, I'll jump in. This thread is about Chinese Comm-Block Chevys.
So, let me get this straight. We bailed GM out with billions of tax dollars so they could take their company to China?
I thought a "certain someone" campaigned on keeping jobs in the US and specifically mentioned China when pointing out his opponent's "anti-American" plan.
It may be that your sole purpose in life is simply to serve as a warning to others.
Much depends on which jobs are being spoken of, and whether the economics of global sales allows for lack of regional manufacturing facilities.
If the designs and development are all done at a given spot, then, irrespective of where they're actually built, increased sales helps justify the high-salary roles of design/mechanical engineers and "product" staff.
If the economics of a given market ensure that non-present manufacturing facilities simply cannot compete in that market, then there aren't a lot of choices for anyone wanting to compete there, short of that country's government changing the barriers to entry and economics of that region.
The reality is both much simpler and more complicated than seen at face value. Toyota, Honda, BMW and others have shown there can be good results from regional manufacturing facilities, but the economics need to be there in order to make such a move justifiable ... above and beyond any political blowback from such moves.
This is a non-story, IMO. GM as well as other "American" car companies have factories all over the world and it has been this way for years (its nothing new). GM has a factory in Australia. The Pontiac GTO (2004-2006) as well as the G8 was based on GM cars (Holden) that is/was made in Oz. Its also been said that Ford's most advanced factory is located in South America because our environmental laws that we have here would never allow for such a factory. Nevermind that America's muscle cars, Camaro & Challenger are made in respective plants in Canada.
"American" car companies have plants all over the world producing car models that we have never heard of before because they never make it over here. I suspect that GM will make cars in China that will be intended for the immediate markets and the world will continue to spin on its axis.
China refuses to let you "sell" a product in the country, unless some part or all of that product are built in China. How do you think they got all of those companies to open factories in China ? I mean, really ? Did you think it was the "labor costs" ?
Is labor in China cheap... YES ... however NOT if they are operating a factory building your product. They pay the workers in the one I have first hand personal knowledge of, and they are considered the high end of skilled workers, .70 - $1.10 an hour. However, the US Company has to pay the Chinese Govt...... $29.80 per hour spent on their product. The Chinese Govt ... keeps the difference between what's paid, and what the laborer is paid.
Then, there are 'some' products that are made in China...... but sold only in the USA..... China will not allow them to be sold within China. Although the people want them, the Govt won't let them .... because they're American.
Some of the most popular cars in China... if you can find them.... and is the "girl magnet" there .... is the older American cars. One problem, they don't have many mechanics that can work on them. We helped one guy do some easy tune up work , etc. to get his Buick running good.... because it was 9 months before a mechanic could get it in.
I don't make jokes. I just watch the government and report the facts. --- Will Rogers ---
Chief Justice John Roberts : "I don't see how you can read Heller and not take away from it the notion that the Second Amendment...was extremely important to the framers in their view of what liberty meant."
Psssssssstttttttt, maybe this is why GM is doing it.....
General Motors sells more cars and trucks in China than America for first time in history | Mail Online
"One of the greatest delusions in the world is the hope that the evils in this world are to be cured by legislation."
--Thomas B. Reed, American Attorney
Second Amendment -- Established December 15, 1791 and slowly eroded ever since What happened to "..... shall not be infringed."
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We want all of those manufacturing chemicals & byproducts and industrial waste over in China rather than here.
That way the Chinese people will become too ill and mutated and chemically contaminated from drinking their water and eating their food & breathing their air...to invade the United States and claim our country for themselves...which they pretty much already own already.