MisterMike said:
But again, since when has raising taxes on big business ever helped jobs? Another example, is now gov't is going to tax company stock options. So instead of footing the bill, they will just cut the program. I think the same cuts will come down on the people if tax rates go up just for business.
A better question to ask is when in the history of the industrial age has lowering taxes for big business created jobs, or raised saleries (accept for the salaries of the owners/partners)?
Would raising taxes (or actually taxing big business for a change), or bad economy cause downsizing, and job loss. You bet. Why? Partially because the owners don't want to take a pay-cut, as well as many other factors. (such as running a debt ratio that is so thin, that "pwease mr. govnoment official..if wyuo tax me then Iwiw have to downsize, firing your vowters...so pweety pweese don't tax me or ewse u won't get reawected evo again!")
So...we lower taxes for companies, it doesn't create jobs or raise salaries (in fact, the living wage has been getting lower and lower), but there is less money in the government so who do we tax? "The people." 'cept the very wealthy can actually have enough revenue to LEGALLY shelter their taxes (trust me...I help people do this!). So...that leaves the fact that taxes on the lower to upper middle class are what is left to run the government; regardless if these people are owners or workers (in fact, the small business owners in our country seem to get screwed the worst on taxes among other things, while the wal-marts of the land rule).
Now, a good economy and higher revenue will create jobs because companies expand to grow their profit potential...however....this does nothing to improve the living wage. It actually helps to lower the living wage, but that is a whole 'nother discussion.
So you see...we've created a conundrum, and I am not sure of the immediate solution.
O.K....I have an idea on the immediate solution, which would be flat tax. Just say screw it, and flat tax everyone, and don't allow breaks. Perhaps some incentives for families and such (and perhaps this would require us to solve our pollution credit problem as well)...but not the level of breaks and sheltering we have now. Everyones tax bracket would lower to somewhere around 20% or less because the very wealthy and the companies who get all the breaks would actually have to pay. I am not pulling this completely out of my **** either, as these figures were the results of an econ study that was done (if I could remeber or find who, I'll let you know). Perhaps some jobs might be lost in the short run ("AHHKKK!...we have to actually pay the government something! Move the plant to India!"), but some tests and studies would have to be done to determine how large of a scale this would be. This would require forumla's and study to ensure a smooth transition, but it could work.
Something is for sure, though, and that is that something has to be done. You know that we have a problem when the people who fund the government and drive the economy (the working lower to upper middle class) have less money to work with year after year.
One last thing: If your business claims to be an american company, but does not pay taxes AT ALL, then you shouldn't be allowed to operate here AT ALL. And...if you own it...then YOU SHOULDN"T BE ALLOWED TO LIVE HERE EITHER!
Also...you shouldn't be allowed to be vice Pres....but thats another conversation!
Yours,
Dick "Tricky dikky" Cheney
