Flat Tax

Posted on November 3, 2011

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After reading yet another article on how big corporations have paid no taxes over the last 3 years it strikes me that maybe lowering their tax rate to promote job growth is not the answer. Maybe its time to make it easier for them to know the bottom line cost of business. By imposing a  flat tax on corporations they would now get down to the business of making jobs. Make it fair and equitable and who can argue with it.

Lets start by being honest. A very large percent of corporations pay no tax at all. Most pay far less than the rate that they should be taxed at. Still others pay their fair share. Lets even the playing field here. Pick a number, say 25 percent, thats it. You pay this amount. No right offs, no deductions, you pay this. Now I know that this simplistic answer will never work. I know this because the tax code is so ridiculous that many people who are schooled for this type of work have a problem figuring it out.  But somewhere in the simple answer is starting point to make it fair to business and fair to the government who collects the taxes. It seems to any logical person that even if the number was a little lower, the amount collected would increase over what is collected now. And the savings on the corporate side could be tremendous when you conceder the amount of money saved on accountants and lawyers looking for every loophole and fighting to keep that loophole. This could be a win – win for all parties.

Well, look at that, feel asleep again and had that same dream. Now that I’m awake and have re-read this I, as all of you, know this will never happen. If one thing in life is consistent it’s that common sense can never and will never be exercised by the Federal Government. Business knows up front what they will pay and they will save money by knowing this. The Government knows what they will collect and because of that will save money, taxpayer dollars , collecting it. But when you have a Government built on the premise of spending more and collecting less, it’s almost impossible to change that mentality.  And that is what we have in this country. How else can anyone explain why the Government is going to now spend a trillion dollars on a jobs Bill when 40 plus percent of that money has to be borrowed. Their real job is collecting taxes,it’s their business. There only source of income. So what have they done with that? Made it so complicated that no one can really understand it and put in so many tax breaks and loopholes that they can never get their fair share. And yet they will fight to the death and oppose a flat tax because somehow they think they will lose money. Can’t lose any more that they have on Wells Fargo. They reported 49 billion in profits from 2008 to 2010, but they received a tax benefit of 651 million. Or how about one quarter of the 280 largest corporations owed less than 10 percent of profits in federal income taxes and 30 companies had no federal tax liability for the entire three-year period from 2008 to 2010.

How much worse can a flat tax be? And so you don’t think I’ve forgotten, NO REAL JOBS FROM ANY OF THESE CORPORATIONS.  But I’ll bet someone will tell you that Corporations need more tax breaks so they can hire more people. They have them now and have been shedding jobs.

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Posted in: Flat Tax, Politics, Taxes