Zero corporate taxes can turn the tide

State leaders must spend stimulus money wisely…

By Jack E. Lohman

So here we are. Blaming the abstract “faulty financial system” rather than the greedy CEOs who drove it into the ground with the help of corrupt politicians who wrote the laws that let it all happen.

Unbelievable are the CEOs, totally detached from reality, fighting to retain their $50 million pay packages even while seeking taxpayer bailouts that are funded by the little guys. You know, those low-wage workers they criticize for wanting to increase the size of their own pie. These CEOs and unscrupulous lenders should be fired and proscecuted for fraud, usury, and even stupidity. But they should not be bailed out.

Until we address the real problem by regulating our free-market system, expect more of the same. There is nothing wrong with trying to get ahead and make more dollars, but this nation cannot continue with the terrible imbalance of wealth we now have. History dictates that this massive transfer of wealth will lead to anarchy, and I don’t think we are too far from it.

Now it’s up to Governor Doyle and friends. But spending the stimulus money on temporary projects that only employ a select few road builders, for example, is not productive.

Spending $25 million to expand a perfectly good interchange in Oconomowoc is absolutely foolish, though admittedly this does satisfy the road contractors that help with campaign funding.

I’m not an expert on this, but I do know that I don’t want our state fixed by a bunch of politicians who take campaign contributions from special interests. The state’s nonpartisan Government Accountability Board should appoint a panel of business and labor leaders to create recommendations for development.  

We need permanent jobs, and eliminating corporate taxes will free companies to hire back and add new employees. These taxes make no sense at all. Corporations hire expensive accountants, CPAs and attorneys to minimize their taxes, and then they add the taxes and all of their avoidance costs to the price of the product and consumers reimburse them at the cash register.

We pay far more at the cash register than if corporations paid no taxes at all. And in the meantime they are put at a competitive disadvantage with foreign product and must lay off workers or outsource to stay in business. Alternatively the state could subsidize new jobs added. (Though I am retired and no longer own a corporation, we also had no choice but to add these costs to our prices.)

Our political system must change as well. Yes, there will always be illegal bribery. Campaign reform will only eliminate the legalized version and the illegal bribery will continue to result in jail time.

Unless we fix our corrupt political system, we are in this for decades to come.

Tidbits:

  • Bribery is never in the best interest of the taxpayers, no more so than it would be if one of your employees were being paid off by a vendor to act to the detriment of your company. Especially when a second employee is taking money from a vendor aimed at exactly the opposite.
  • Why are we laying off policemen and firemen and not resolving our school problems? Because the politicians have been paid to spend our taxpayer money elsewhere.
  • According to “Corporate executives overpaid, undertaxed,” average full-time workers made $41,198 in 1973 and $37,606 in 2008, adjusted for inflation.
  • Also, “While workers across America were losing jobs, homes and health insurance, Merrill Lynch paid nearly 700 employees more than $1 million each in bonuses last year, amounting to a $3.6 billion bonus bonanza while Merrill lost $27 billion.”
  • The news is as stunning as it is disturbing. KBR (Kellogg, Brown & Root…until recently a part of Halliburton) was awarded a $35 million contract for major electrical work in Iraq, “…even as it is under criminal investigation in the electrocution deaths of at least two U.S. soldiers in Iraq.”
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    Sorry to rail on about political corruption on every issue, but in fact every taxpayer problem is caused by political corruption. So it has to be talked about, it isn’t going away. Politicians don’t make stupid decisions for free; they are paid to, and do, perform well.

    Campaign cash must flow in order to distort laws, and if it didn’t work to the contributor’s benefit, cash wouldn’t be given. Good laws do not require cash to flow, only bad laws do.

    State taxes spent on subsidies and tax breaks, rather than on schools and firemen and policemen, are just a few examples of the effects. It is a far bigger problem at the federal level. See more at www.WiCleanElections.org.

     

     

    2 Responses to Zero corporate taxes can turn the tide

    1. John says:

      I’m with you on the political corruption front.

      But, no corporate taxes? Can you say no corporate responsibility to local communities, nothing to lose, no stake in supporting the local infrastructure or schools for an educated work force? We should kiss the feet of businesses that hold job opportunities over our heads like the playground bully, or they will leave for lower pay in foreign countries. What a beautiful world.

      What are you drinking?

      Tariff the bastards who choose to turn their backs on American labor and middle class families. We’re already at a point of not being able to afford to spend money even on cheap things knowing that we might not have a job in the future. What a great business model. And now that most competitive businesses have folded due to the recession, we have only a few choices, the big chains and box stores. Now that’s competition.

      Trade should have started with the premise that each country could sustain itself, while never having to depend on other countries for a thriving society. But that didn’t happen did it?

      We could advance these new fiefdoms, the power elite, so they will give us a jobs without benefits. After all, we wouldn’t want to demand too much of these lords of business. We should be glad just to have a job. That by the way, is something people are already saying now in story after story in our newspapers.

      It sure would be nice to pay even higher taxes to sustain their roads and utility services. How could they abandon us?

      As far as paying more for their products, I’m sure they’ll reduce the price, even though they know people were willing to pay the original inflated price. Businesses that already don’t pay taxes in the state must be offering incredibly reduced rates, right?

    2. John, Let’s turn it around 100%. Zero taxes for people and 100% of revenues coming from corporations. Now what have we accomplished? We sure have taught those bastards a lesson, haven’t we?

      Not! Even if we gave them zero write-offs so they wouldn’t have to hire expensive attorneys and CPAs, they’d still pass the taxes on to the consumers and we are right back to where we started. But in the process they wouldn’t be able to compete with foreign product and they’d go out of business, taking our jobs with them.

      This just doesn’t make any sense at all. We are paying 100% of the taxes anyway, why are we adding all of the administrative BS in the process? Let’s give corporations a break and get all of our jobs back in the US!

      I hear you on tariffs and have supported them in the past. But those are taxes too, and they are 100% passed on to the consumers.

      We need to get smart. This system we have is total foolishness.

      Jack

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