By Douglas V. Gibbs
There seems to be a belief out there that big corporations don't pay any taxes. GE is proof positive. . . but they are in the liberal left's pocket, so of course they get preferential treatment.
The federal government has been giving money to failures like Solyndra, and bailing out failures, to buy votes, and try to pick the winners of society. Problem is, the beneficiaries of the government's good will wind up bankrupt. Such mercantilism is not how a free market is supposed to run. Failures are failures, and should fail. Other companies will pick up the pieces and grow as a result. The winners will win as a result of capitalism, not government favors.
Simply put, the liberals in control of the federal government are mercantilists that, despite their strategies they think will grow the economy, are bankrupting and ruining the economy of this country. The federal government is not some benevolent entity. The federal government is not a good money manager. The problem is not the corporations, as the federal government claims. The problem is the federal government.
People are overtaxed as it is, and the government is spending more than it should. If the government only spent constitutionally, we wouldn't even need an income tax because total government spending would be about 5% of GDP.
Cut spending, reduce it to constitutional levels, leave the State issues to the States, and the income tax will become unnecessary, and it would be reasonable to repeal the 16th Amendment.
The problem is, the tax system isn't even what it used to be. The original idea was to raise revenue to pay down the costs of the Spanish-American War. The income tax was supposed to be temporary, and voluntary. The income tax, however, under the management of the establishment, has evolved into something else. It is no longer about raising funding to run the government. The income tax, complete with the IRS as its militant arm, and its out of control tax code, exists as it does now for a whole new reason: for the purpose of creating political patronage.
Forty-seven percent of Americans who work pay no income taxes. The top 10% are paying close to 50% of all income taxes. The liberals will tell you the rich don't pay their fair share when it is the rich who are the ones supporting this country right now. Obama, however, does not believe that anyone should do that well, unless they are a part of the political elite. He has $1.5 Trillion in tax hikes ready to roll, and they are designed to take aim at the wealthy. Since Obama has taken office the number of millionaires has dropped by 39%. That is why companies are sitting on money, and why nobody is hiring. The liberal left is attacking the producers of this nation, and there is uncertainty. The rich are the ones that produce jobs, and grow the economy, and they are under attack. The last thing they want to do is invest, or attempt to grow their businesses.
Instead of growth, Obama's Keynesian economics has brought us a national debt that is skyrocketing out of control. The liberals have targeted the wealth creators, and in turn wealth is being destroyed. Socialism and utopian redistribution is not bringing about a more socially just future - the policies are destroying American prosperity. The government is out of money, and they are printing money at a rate that is devaluing the dollar in such a rapid manner, that it is bringing the United States rapidly to a fate not unlike what Europe is experiencing now.
In a panic, they are going the only place where they think the money is - the rich - and they are simply taking it from them.
The tax code is being used to punish the producers, getting even for what the Left believes to be an unfair society. The liberals have no interest in creating new jobs, because lowering taxes would encourage growth. In 2009 Obama admitted that raising taxes in a recession is bad, yet now he wants to do it.
Tax increases were always a part of his agenda, despite his rhetoric as a candidate, and early on in his presidency.
Tax collection is down because more and more people are out of work, meaning that less and less people are paying taxes. The corporations, individuals, all of them are paying less as the government spends more. The federal government is printing and borrowing and spending even more and more.
For every corporation taxed out of existence or taxed out of profit, that's another corporation for which you have no chance of ever getting a job. Whether you think the corporations are evil, can't be trusted, or whatever, the fact is it is them that is needed to create jobs, and grow the economy.
Corporations pay a 35% tax rate in the United States. It's the highest in the world. Then, after they pay their corporate tax, the shareholders who cash out their investments pay a capital gains tax on top of the corporate income tax already paid by the corporation. And then, the people who work for the corporation pay an individual federal income tax on top of what the corporation already paid with its corporate income tax. Dollars made by a corporation are taxed a number of times.
The Left have decided corporations are the enemy, except the ones that play ball, or serve the Left's political purposes (like Solyndra). The Left has done all they can to demonize the corporations, accuse them as much as possible, and they have even convinced people that they don't pay taxes. The people that work at these companies pay taxes. The corporations do too.
But, in reality the corporations don't really pay taxes. The money they lose in taxes they make right back up in the price of the product you buy or pay for. In other words, the Left wants to tax the rich, and hammer the corporations, and in the end the cost will be passed on to the consumers - which means when they tax the rich, they are really taxing the consumers (largely the Middle Class and the poor).
The Left does this for control, but they call it social justice. They demonize the oil companies, but need gas to go anywhere. They demonize the insurance companies, but dump their own investment dollars into them.
Liberals love the products and services that businesses provide, but they demonize those companies because it makes them feel good to hate them - because they've been taught to do that.
They have no sense to understand that the things they use are available because of the corporations - a free market. They use the technology, but they claim to hate the corporations, and want to punish them with more taxes so that they can give the money to the rest of the people through government programs - but does that create more jobs? Does that truly help the slaves on entitlement programs?
No, of course not. But for the political elite, it is truly about none of those things, anyway. For them, it is all about buying votes, and demonizing the corporations as their hand is behind their back, with their fingers crossed.
-- Political Pistachio Conservative News and Commentary
Buffet's Berkshire Owes $1 Billion in Back Taxes - NewsMax
Obama Unveils Deficit Plan Containing $1.5T in Tax Hikes, GOP Cringes - Fox News
Flash Back: Obama Says You Don't Raise Taxes During a Recession - You Tube
$1.5 Trillion in New Taxes - Heritage Foundation
O'Reilly Factor: Raising Revenue by Punishing Achievement - Rebellion News
Solyndra Scandal Ends Green Jobs Myth - Heritage Foundation
Dem Congresswoman: "You Don't Deserve To Keep All" Of Your Money - Real Clear Politics
Obama's War on Job Creators - Heritage Foundation
Economic Outlook Deteriorates on Debt - Townhall
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