Corporate taxes are a sham

Corporate taxes are now and always have been a political game.

By Jack E. Lohman

A game used by some politicians to show how tough they are by going after corporations, but who are willing to soften up for cash bribes (campaign contributions, don’cha know?). And used by other politicians to (image this) fight for tax breaks for these same corporations, in return for (again) campaign contributions.

In both cases the taxes that are paid, plus the costs of avoidance for the taxes that are not paid, are 100% passed on to you the consumer. Or where they can finagle it, they are written off their taxes as a business expense which — you guessed it — are borne by the taxpayers.

Life is just not fair.

We are better off having zero taxes for corporations (to keep jobs here rather than in China and India), and raise taxes on the wealthy.

But guess what? Campaign bribes also flow here to keep the Fat Cats fat. And their competition in arrears. And their CEO salaries at the max.

How much good did the Bush tax cuts of 2001 and 2003 do? Where is all of the job growth that was promised then? Should we expect that an extension of those tax breaks will — 10 years later — create the economic growth we were supposed to see then? Or is this just more political gamesmanship?

The tax breaks were kept by the lucky recipient, not spent on jobs. And that’s all we can ever expect, because only increasing demand of product or services will create jobs. And stealing money from the middle and lower classes — the people expected to create demand — just won’t cut it. Never will.

Scott Walker’s tax giveaway in January will do more as political payback than for stimulating our state’s economy. And the tax cuts should go to ALL corporations, not just to those who give campaign bribes. (Which, incidentally, they also pass on to consumers.)

Our big problem … 

… no, our ONLY problem… is campaign bribes. Corrupt politicians. And the sooner we can get them (including Scott Walker) off the payroll of the corporate interests that fund their elections, the sooner they will instead write laws that benefit the totality of our state and nation and return our economy to sanity.

It does not matter what your issues, follow the money and you’ll find a politician on the other end with his hand out. In fact, the Fat Cats love it when the people are diverted toward feel-good issues and away from the political corruption that feeds their tribe.

ObamaCare and RomneyCare in Massachusetts both suck, and both happened for the same reason: cash contributions from the insurance and health care industries. Neither were passed with the best interests of citizens in mind. Both mandate that citizens purchase a commercial product (insurance) from an industry that contributed heavily to their campaign. Paul Ryan’s plan to save Medicare, by privatizing it and adding 20% for-profit overhead, is a cruel joke.

And since there are only two forms of money — public and private — that means that private bribes got us here and only public funding of campaigns will get us back. Our politicians are not stupid, but they are greedy and too willing to give away the store (our store) for a price.

Fix the economy by making poor people poorer, and rich people richer? I don’t think so, Paul, but thanks for your advice.

3 Responses to Corporate taxes are a sham

  1. And get this: corporate taxes only represent 6-8% of U.S. revenues! Reducing them to zero would have little impact, especially if offset by higher taxes on the rich. Don’t miss these Ten Charts that Prove the United States Is a Low-Tax Country

    • Gregg says:

      Have you seen any detailed analysis showing how much income taxes would need to be raised to make up for the 6-8% revenue loss from corporate taxes?

      I think the pro-business independent voters might support something like this. I suspect many of these voters don’t fall into the high income brackets. On the other hand, many of these people are against increasing any taxes even if it doesn’t apply to them.

      The Republicans will enthusiastically accept any proposal to eliminate corporate taxes, but will also insist on across the board income tax, capital gains and estate tax cuts. Since they have the full support of the corporate media, they have been pretty effective at arguing their positions.

      I’m pessimistic because it looks like the Republicans just won’t compromise on anything. Why should they? They’re not really interested in solutions that benefit the public. They only need to please their corporate donors. These corporate donors want the elimination of any regulations that might lower their profits (except the regulations that inhibit their competition), an end to competition from public institutions and of course, lower taxes. So the current Republican strategy is to remove regulations and privatize public services, even if these public services cost less, and to lower taxes. If you can accomplish all of these objectives at once, you will drastically reduce the size of government (“starve the beast”), eliminate those costly regulations and reduce competition and thus increase profits and salaries. That’s the goal — corporate utopia. Unfortunately, that might also mean the elimination of the middle class as we know it.

      • I haven’t seen just how much the Fat Cats will have to cough up to offset the corporate tax losses, Gregg, should we ever eliminate them. I don’t count on that happening, but I can only hope to get Lefties to recognize that they are paying for those taxes, and in a very regressive way. The truth is that IF we could get the politicians off the payroll of the Fat Cats they’ll find the right formula.

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