Let the tax games begin…

Call it the Harley-Davidson jobs bill!

By Jack E. Lohman

Fact: This country is in deep financial trouble and the poor people can’t pull us out of it.

That’s tough to accept, but the rich guys think they’ve found a way. It’s called a Value Added Tax (VAT), and they’ve even got President Obama talking about it. It transfers the burden to the middle wage earners.

It’s a national sales tax that’s applied at the point of distribution rather than at the cash register. It raises the price of a product from $1.00 to $1.05 (or whatever) and the consumer pays without knowing it.

A national sales tax adds the $0.05 to the $1.00 like all taxes, and the consumer notices it right away. So the VAT lets them slip it to buyers in the dark.

But both penalize product consumption, and that’s the last thing we need right now. We want people to buy, not shy away.

The wealthy folks like the VAT because it is regressive. It spreads the costs over all sectors, regardless of income, and it reduces the need to tax wealthy people. But the little guy feels it and the big guy doesn’t, because a larger percentage of his income is going to taxes, and the rich guy doesn’t notice the hit.

Indeed we need to simplify our tax process.

Zero taxes up to $25K, a progressive tax on all income over $250K-$300K, and a flat tax in the middle. And on all income, including stock options and investments. Not just on claimed wages. And the 15% capital gains tax loophole should be eliminated and all income taxed evenly.

Oh, I know; the rich guys will supposedly invest and create jobs.  But when that happens the jobs are usually in India or China. Otherwise the money gets stashed in off-shore tax havens, and rarely legally.

But even if that trickle-down ploy were to work, then why not have zero taxes for the wealthy and let them invest like hell?

Well, we saw the tumble in jobs after the Bush tax cuts in 2001 and 2003, which went mainly to the rich, so no thank you.

Corporate taxes should be zero?

Almost. At least for those corporations who manufacture or provide services that use American labor — and who adhere to reasonable compensation packages for their executives — their taxes should be zero.  That will bring old jobs home and attract new jobs. That, and single-payer healthcare, can keep Harley-Davidson in Wisconsin.

As it is, these companies simply add their taxes to the price of their product anyway, and we reimburse them at the cash register. That’s the way it has to work, but it is counter-productive.

So let’s make hay with this new policy and make our companies and product more competitive with foreign product! What’s not to like about that?

Tax policy to adjust for inequality?

Yea, it’s got to be that way.

Inequality didn’t cause the fall of the economy, it was the other way around. We cannot ignore the massive redistribution of wealth that occurred over the last 20 years. Smart but deceitful financial executives aided by politicians corrupted by campaign cash took the country down, and only the restoration of the lower and middle classes will bring the country and the world back to its feet.

Otherwise we will find ourselves like Thailand, with the poor battling the rich in the streets, and their riches are being spent on security to guard their families. That’s what we call rebellion.

While the world economy collapsed, the Fortune 400 richest Americans increased their wealth by $30 billion. From where did that new wealth transfer from? From the poor and middle classes. It could come from nowhere else. But for better or worse, the perps stole from all countries that had assets, and not just ours. That also makes prosecution more complicated.

It took two decades to get us here and it will take two decades to get us back. And maybe even longer if we don’t get the special interest funding out of our electoral system.

This country flourished, especially when we taxed the rich higher, and we can again. But can we trust the politicians to do the right thing?

6 Responses to Let the tax games begin…

  1. Jack, I’m with you on most of your solutions, but I still don’t like getting rid of the corporate tax.

    The corporate tax money is a sure thing. When that’s gone, who will make up for maintaining our countries infrastructure that benefits business?

    Will Harley bring their prices down once the tax is gone? No. They will make more money. Will that create jobs? No. Maybe Harley is a bad example because they have a unique product, but the market has already adjusted prices, and always will…kinda.

    Even though price fixing was determined to be “legal” by the conservative activist supreme court, throwing out 100 years of precedent, there are still market forces at work.

  2. I know the idea is controversial, John, especially because most people don’t see a direct drain on their cash when we tax corporations. But it’s there, and when Harley leaves the state it will increase. Will they reduce prices? I think competition will force them to in time.

    But even if we eliminated taxes and health care costs (through a single-payer plan), they still have to deal with the high union wages here versus elsewhere, and that may be the killer.

    Corporate taxes today represent about 8% of revenues, and over half of them pay no taxes at all. But we consumers nonetheless reimburse them for their expensive tax avoidance (lawyers and CPAs). We are driving companies out of the state and out of the country. This is the most counter-productive feel-good tax I’ve ever seen.

    • clarence swinney says:

      Corporations pay 16% on top rate of 35%
      Top 400 Incomes pay 17% of Income in Fed tax
      Top 20% pay 30% of Total Income in Federal-State-Local Taxes-Middle 20% pay 28%

      TOTAL FINANCIAL WEALTH OWNERSHIP-2008
      1% own 43%
      10% own 70%
      20% own 93%
      80% own 7%=120,000,000 workers shafted

      Rich got ultra Rich since 1980
      Three so called Conservative Presidents borrowed 9000 Billion which enabled rich to get ultra rich

      Would not we have a surplus were there no Tax Cuts for Rich??????

      1980=10 Billionaires
      1989=51
      2008=403

      To reverse course we must reinstate Tax policies which hit rich
      Individual Income Tax at 40%
      Unearned Income Tax at 40%
      Remove Payroll Cap
      Remove Corporate Loopholes so they pay 35% not 16%
      Rich Shall Scream ruin economy

      OK look at history

      1945 to 1980
      Greatest Years in history of America.
      Rich paid FAIR.

      Two Conservative WSA administrations gave us GREAT DEPRESSION and GREAT RECESSION

      Free the Freak Markets
      Let the good times roll-ROLL DEM DICE
      From investing in businesse and creating jobs Gambling paid off

      3 Conservative Presidents got 99,000 jobs per month. Carter 218,000 Clinton 237,000.

      12 years Congress controlled by Republicans
      8 years Bush
      6 Years control of ALL government
      Increased Spending by 100%(1800B to 3600B)
      Increased Debt by 100% (5700B to 11,900B)
      Created 31,000 Net New Jobs per month–Lowest since Hoover.

      Took wealth increase to top 1%
      by 115% (20% to 43%)

      VOTE A REPUBLICAN TO CONGRESS IS STUPID DUMB INSANE MORONIC IMBECELIC SUICIDAL bad bad
      bad bad bad bad bad

      cswinney2@triad.rr.com
      facts numbers appreciated

  3. clarence swinney says:

    Financed Campaigns
    Our Congress can accept nothing in office. Nothing.

    WSA formerly USA
    Wall Street Ultra Rich own
    Major Corporations
    Pentagon Suppliers war mo war mo war war
    Banks-we will charge whatever we please
    Credit Cards–6% aw heck charge 24%
    Own Congress
    Own White House

    I admired Max Baucus for years.
    Health Care Reform Bill hit his committee.
    First act-Remove Public Option.
    70% wanted it.
    Stunned me
    Until I read that Insurance Firms gave his campaign coffers $1,900,000.
    $$$$$$$$$$$$$$$$$$$$$$ BUYS ANYTHING $$$$$$$$$$$$

    cswinney2@triad.rr.com
    comments with facts number appreciated
    author-forthcoming-How Democrats created a Great Middle Class and Conservatives are determined to destroy it
    author-Lifeaholic-work for a Life not Just a Living

  4. clarence swinney says:

    This site is new to me THANKS
    It is awesome.
    Why are not you on TV like MSNBC?????

    AS A POLITICAL HISTORIAN I SEARCH MANY FORUMS EACH DAY.

    It is a thrill to find one so filled with useful facts

    cswinney2@triad.rr.com

  5. […] “While the world economy collapsed, the Fortune 400 richest Americans increased their wealth by $30 billion. From where did that new wealth transfer from? From the poor and middle classes. It could come from nowhere else. But for better or worse, the perps stole from all countries that had assets, and not just ours. That also makes prosecution more complicated.” Source […]

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