Harvard's Elizabeth Warren is not only the self-proclaimed "intellectual founder" of the Occupy protest movement, she's also the originator of the idea that no one got successful on their own.One of the things that occurs to me is that corporate taxes, which burden small businesses more than large, are really pass-through taxes, which are ultimately paid by the customer, and if not by the consumer, then as a penalty to the stock holders, as the customers rebel against price increases.
Professor Warren's view is that government is responsible for helping to build your business. Because of that, Warren says government is entitled to, as she put it, "a hunk" of whatever you built.
It's how she justifies raising taxes in order to fuel her idea of a bigger and bigger government.
Regards — Cliff
Tax is always passed through. Profits extracted from enterpirse can be taxed, via income or capital gains.
ReplyDeleteOn corporate tax, there is constant wailing about the set rate, yet rarely is the set rate paid. The larger the corp., the more likely loopholes are exploited. This is where the charges that "GE paid zero taxes."
Small businesses can't afford fancy pants tax attorneys. So, the corporate tax ends up as a regressive tax.
Worse, yet. Big corps, like GE, et al. can afford to buy politicians in Congress. They not only "react" to taxes, with an army of lawyers and CPA's. They also, proactively rig the game in their favor.
Bend over, middle class. "Real Americans" need the dough.
We need to look at businesses and taxes at a higher level than just the tax on profits, less whatever deductions companies are allowed.
ReplyDeleteLet's include the personal income taxes paid by the employees of each company, and the payroll taxes and health insurance expenses borne by both the company and its employees.
Then compare the total tax and health care expense of various companies. You will see that those who import goods and sell them to us bear a much smaller total cost burden. That is one big element contributing to the loss of American jobs.
We need a tax system and health care system that levels the playing field, so that businesses with equal sales pay approximately the same total tax and health care costs.
We are all headed to quite literally "FRENCH" tax rates once Obama gets "more flexibility" in November. Thus....these discussions......while interesting and entertaining....are merely intellectual exercises.
ReplyDeleteOf course, Neal just pulls this 'fact,' out of his derriere.
ReplyDeleteWell.....I didn't pull anything out that hasn't been pulled out before me in the past few weeks. I can think of few political and economic observers that are not admitting and or predicting that taxes not only are GOING to soar after Jan 2013, but HAVE TO soar. Obama's legalization of illegal immigrants alone is going to cost millions we never budgeted for.....oh wait...the Senate that has been in the hands of Democrats for well over 4 years hasn't bothered to pass one. Never mind that the law requires one to be passed. But then, under Obama, we don't need to follow no stinkin laws that we don't like...or disagree with.
ReplyDeleteGee....I wonder if that argument will work with a MA state trooper when he pulls someone over for speeding. "Well officer, I just don't think that law is fair, so I am just not going to follow it."
Speaking of derrieres....it is not what I pulled out of mine....it is what your populist, class warfare hero is going to ram up everyone's starting in 2013.
You forgot to mention that Obama will force Christian women to have abortions, herd dissenters into "re-education camps" and will take away all the guns, except for those owned by the Black Panthers.
ReplyDeleteI realized Glen Beck and Michele Bachmann are talking to someone. Who knew. It's you!
HA.....sorry....don't listen to Beck....and to my knowledge....Bachmann is busy finishing up her term in the House and prepping her digs in Switzerland. I was listening more to folks like Star Parker, John Stossel, George Will, and of course George Friedman.
ReplyDeleteClear, concise and easy to read. Thanks for a nice blog post!
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