What do USAA, CVS Caremark, Costco, UnitedHealth Group and Berkshire Hathaway all have in common?
They're all multi-billion dollar American corporations that pay their fair share of taxes and don't hide their money offshore. In fact, if you combined the federal tax receipts of just these five corporations, that accounts for more than $7 billion. Theoretically, that money paid for 175,000 teachers at $40,000 a year, or for the guaranteed healthcare for sick and injured 9/11 first responders outlined in the Zadroga bill.
Oliver Wendell Holmes Jr. said "Taxes are the price we pay for civilized society." Taxes have paid for everything from the interstate system to national parks, the moon landing and the liberation of France. In fact, Eisenhower, a Republican, presided over an era where corporate taxes accounted for a quarter of all federal tax receipts, and the richest Americans still enjoyed their wealth while paying a 90% top tax rate. Americans were never more prosperous as a whole than during that era. Now, loopholes and lobbying have lowered the top tax rate to its lowest point since the Truman era, and corporate tax dollars only count for 5-7% of all federal tax receipts.
After the Great Depression, our leaders had a vision for America. They fought to see ours was a country where everyone was afforded the opportunity for free basic education, an affordable home, a steady income and free healthcare for the poor and the elderly. FDR took to the airwaves in his last months of life to push for a second bill of rights that guaranteed all of these things and more. MLK called for an economic bill of rights to be drafted in 1967 that guaranteed Americans a fair standard of living.
Instead, the American people who pay taxes and abide by the laws put before us are seeing these essential pillars of American democratic society crumble to pieces. The same corporations who pay for the campaigns of our elected officials and own the mainstream media are instead allowed the opportunity to not only avoid paying their fair share to participate in society, but also to spend millions lobbying our leaders to continue avoiding their obligation.
We're constantly bombarded by rhetoric about how businesses are "obligated" by their shareholders to avoid taxes at all costs. Talking heads on TV constantly deride America's corporate tax rate, calling for it to be lowered so we can be more "competitive." Yet, the aforementioned corporations paid close to, and in some cases more than America's marginal 35% corporate tax rate. And each year, they continue to be extremely profitable without dodging taxes through offshore accounts.
What if today's corporations abided by a more sustainable business culture, where taxes are seen as an investment in their country rather than something to avoid? What if those investments could pay for nationwide poverty relief? Or cross-country green energy infrastructure? If NASA had the money to carry out a Mars landing, instead of a moon landing? If we could guarantee high-quality free public education to ALL students, regardless of zip code.
If an American business wants to employ our workers, use our infrastructure, and depend on us to make them prosperous, they should be required to pay our taxes. Our leaders must reform our tax laws to reinforce that standard. Let's hold government and businesses accountable to the American people -- the real shareholders.
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One of the reasons companies move overseas is because of the huge burdens (red tape) this country has placed on them. The reason companies move out is not as simple as tax burden although that is a part.
The wealthy have been vilified for not paying their fair share when in reality it is the top 20% that pay nearly 70% of the taxes. So what is the "fair share"?, 80...90...100%?
Wouldn't it be far more fair to have a flat tax and no deductions? This way it would be fair. Not only fair, it would lower everyone's effective rate and businesses could operate here with less of a tax burden.
This should be the real discussion in this country.
You trying to fool people with word play.
The issue is not the absolute dollar amount paid in taxes.
The issue is what is the net effective tax rate after all deductions and credits of persons making over $1 Million per year vs that of persons making $100,000 a year.
Remember that the rich get a much larger portion of their total income from unearned income which is not subject to Medicare or Social Security taxes. Long term capital gains also enjoy a lower tax rate than most earned income.
Make the poor and middle class pay more and the wealthy pay less.
Flat taxes always favor the wealthy.
Progressive rates are more 'fair'
If we all just worked our jobs in society for the good of society, rather than to make money, then so much of the jealousy, greed, corruption, and general inequality of America would wittle away.
If you want to know where working for the "good of society" was successful, then look at the current nations in Scandinavia, or even nations such as Germany, France and Great Britain. These latter three nations may not be faring as well as their northern cousins, but most of their misfortunes are due to the excesses of the rich and the "free-market reforms" tried in these countries.
Even the former SFR Yugoslavia is an example to point to, as their policy of workers' cooperatives benefitted the vast majority of their once impoverished citizens.
Interestingly, VAT consumption taxes are in place in many parts of Europe, especially Scandinavia, a place renowned for its economic equality. It seems that it does not matter how much money you raise in taxes or how you raise it, but rather, as the phrase goes, "How you use it".
The Federal Reserve taxes us each time they mess with interest rates or print another truck load of cash. Deflationary taxation, decreasing the value of your dollar, makes your ENTIRE LIFE more expensive. Right now your life is worth nothing financially; with the dollar worth about 2-4 cents, how much more tax would you LIKE to pay?
I'd also like to have someone explain what is civil about the way government is managing our lives. Because there's no bloodshed or peasantry involved as in the former serfdom we now call the EU, we are calling the current political Red/Blue duopoly CIVIL? Oliver Wendel Holmes? A Brit? His family roots came from the most heinous and abusive society the planet has ever seen...the British Empire.. Bloodshed, invasions, monopolies, colonization, slavery, outright theft of resources, and they STILL have a MONARCHY to this day!!! You need a better example than British thinking...sorry.
"Oliver Wendell Holmes Jr. said "Taxes are the price we pay for civilized society."
Corporations are free to move or retoute wealth to provide a wanted product and net the best profit. Thus, with respect to Oliver Wendell Holmes Jr., Society that wishes to remain civil, cannot not over charge people for its taxes; over doing it, is called oppression. The Democracy at Athens died of over taxation.
Now, in Business 101, we learn if the price is too high, the customer moves to another vendor. But, an optimal net in revenue income occurs when a effective balance between the cost of production and the price of the produce is struck. Some customers switch but not too many and the net income works out well.
America has the largest tax rate for corporations in the civilized world. Tax 101, how many multinationals will move or reroute wealth to countries with less stupid tax policies? If we miss a tax balance, why wouldn't a downward government debt spiral occur? Answer: because our government expenses are low!
Becoming corporate is our future. Everyone should be able to run a business out of their storage unit with a spreadsheet and a website. Did you know that even a one may office can off shore income? So, please, put that thinking cap back on.
Except in this case we simply buy out the other vendor, buy out the Feds who ask too many questions and get in the way, and then fix prices alongside the 1-3 other companies who did the same.
Why not have every Representative and Senator come to the table with a list of expenditures that benefit their supporters and campaign contributors that they are willing to cut. That's the only way we'll get real reductions.