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?