The focus of the day is the economy and what is more controversial than taxes?
We can mark the day….taxes will be all over the web come 2014….it will be a major stepping stone for campaigns….the conservs will be all over this issue especially the need to lower taxes, especially for corporations……they will argue that the US has the highest corporate tax rate in the civilized world……but after they take all their deductions and special dispensations it is one of the lower…..(we can argue that later)…..I have a problem with the whole tax thing in general……the argument is that if we lower taxes we will create more jobs which in turn will increase revenue and make the skies blue and the angelic chorus sing……to me it is a total bullsh*t belief.
Jobs will be #1 issue for Dems……but will they follow Bubba Clinton and cave to the conservs on taxes? BTW, we have been lowering taxes for 20+ years and how many jobs has it made? How many good paying jobs? I have been writing on politics and economics for 40 years and I have yet to see any benefit for the nation by lowering taxes……it does nothing to solve poverty…if anything it makes it worse……
But back to the con job…..lower corporate taxes…….from an op-ed written by Nathan Proctor…….
For years, business lobbyists have advanced the theory that lowering corporate tax rates would create jobs in the U.S. Their argument is that any effort to close corporate tax loopholes would have to be coupled with legislation to lower overall taxes for corporations. This argument, with the help of its powerful backers, has become the prevailing theory in Washington.
The report, released earlier this month by the Center for Effective Government (CEG), examined the tax rates paid and jobs created by 60 large, profitable companies. The companies were not cherry-picked. Rather, they came from a larger group of 280 corporations and CEG examined the 30 companies that paid the highest effective tax rate and the 30 companies that paid the lowest effective tax rate.
The report’s conclusion? The 30 companies that paid the highest tax rates created nearly 200,000 jobs over a five-year period. Conversely, the companies that paid little in taxes or no taxes whatsoever shed about 51,000 jobs during that same period.
But rather than avoiding taxes and lobbying for even lower rates, the report’s authors argue that corporations should pay their fair share for the national public structures that allow their businesses to be profitable in the first place. Their argument is that corporations enjoy a number of benefits that clearly are the result of taxes all of us pay: a workforce educated at public expense, roads and transit systems that allow employees to get to work and goods to reach customers, and consumer safety standards and inspections that give consumers confidence in products.
Closing loopholes is not the answer…….changing, not reforming, the tax code is the only way to be sure that equity is practiced in our method of taxation. And there is the rub……Washington will reform, not change….and that will accomplish only one thing….make life for the middle class worse….maybe 2 things…..reform will make the wealthy pay less and make more profit and in the end…that is the job of Washington…protect the wealthy.
They, meaning the conservs, still cling rabidly to the notion that trickle down economics works…..that has been proven to be a mindless belief with no foot in reality.
Thinking about the taxes thing I have come to the realization……with tax cuts and the loss of revenue will make the deficit raise then they use that to drive the move to cut social programs to help the deficit….and then once they have that accomplished they return to the tax cut thing which they will get and the deficit will raise and then the programs are cut…..it is a vicious cycle……a cycle that the Dems allow to continue….looks like all the special interests money is well spent.