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Weekend Rant: Corporate Taxes


Don Stott

Do corporations pay taxes? Of course not! Who pays them? You and I pay them, just like we pay income taxes, sales taxes, and all of the 200 plus taxes we pay either directly or indirectly. Think about it. If Ford Motor Corporation pays a 35% corporate tax, that tax is added to your new Ford. The same is true with Walmart, Boeing airplanes, or the local electric company. Consumers pay all taxes, either directly or indirectly. This is easily understood, I am sure, but the other effects of the corporate tax are more sinister.

For several years now, other nations have been lowering their corporate tax rates, and are almost in a race to see who can lower theirs the most. Why? TO ATTRACT BUSINESS, and it’s all that simple. America has, counting state corporate taxes, an average of 40% corporate taxes, by far most at the federal level, averaging about 35%. If you were a corporation, making weed eaters, TV sets, or tires, and you had to pay a 40% corporate tax, and you found a nation which had either much lower or no corporate tax, and on top of that, there were no high labor prices, incessant bureaucrats, and endless regulations, would you move? Of course.

The high US corporate tax, is one of the reasons why jobs have moved overseas, and so far, I can hear of no effort or campaigning by the Tea Party or other conservative groups, to lower or even eliminate all corporate taxes. If there were no corporate tax, all merchandise would be cheaper to buy, and factories would probably move back here, creating jobs. The possibilities are magnificent.

If there were no US corporate taxes, not only would all merchandise, gasoline, electricity, clothes, tires, etc. be cheaper for all of us to buy, but the jobs created or returned to the US would all pay income taxes, probably offsetting the loss of corporate taxes. Think of the factories that would be rebuilt or built, all paying property taxes. In upstate New York, an ex General Motors factory of 800,000 square feet is about to be demolished. The property taxes that were collected from that factory will be gone, and the jobs are already gone. There are hundreds, if not thousands of empty factories in America, and millions and millions of lost jobs, partially lost because of corporate taxes. You think ethanol is stupid? Try corporate taxes!

The total lack of even the most basic understanding of economics in D.C. and for that matter everywhere, is astounding. Hundreds of millions of Americans still think their dollars are just fine, earning 1% interest, and losing value every day, week, month, and year, as indicated by constantly increasing prices of everything. Maybe we’re lucky that most people are economic illiterates, because if they knew what is hitting them, the prices of metals would zoom to the heavens. They will, but slower than they are now, since most people haven’t the remotest idea of elementary logic. The new customers we get every day, are but a trickle of what will happen eventually, as more and more people get a glimmer of what’s going on in the world.

The debts are unpayable, other than with unbacked paper money. Even a second grader would understand if it were explained to them.

Tucson

Tens of thousands die in traffic accidents every year, millions die from cancer, heart attacks, and other ailments, and many brave police and firemen die protecting us. Some nut case kills half dozen in Tucson, and the media goes crazy. Obama reads a speech he didn’t write, in an attempt to retrieve a few shards from a broken Presidency, and the world is agog. I’m sick of it. Fox News is just as guilty as the rest. Give us a break! If a couple of armed citizens had been present, it might have been less tragic, and the villain wouldn’t have to stand trial. Democrats aren’t the type to arm themselves though, and there weren’t any Republicans present at a Democrat rally.

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