SENT TO "THE GANG OF SIX" SENATORS, COBURN, CHAMBLISS, CRAPO, CONRAD, DURBIN & WARNER:
We all want to cut taxes. Globalization is nothing more than production looking for a cheaper country to produce. We can cut taxes and stop the hemorrhage of the U.S. off-shoring its production and jobs by eliminating the corporate income tax and replacing it with a 5% value added tax (VAT). One hundred thirty-six countries in globalization have a VAT that is rebated on export. This will immediately boost exports and create jobs. Not only that, it amounts to a tax cut. The average corporate tax is 23% compared to a 5% VAT. The 2010 corporate tax brought in $191.4 billion, whereas a 5% VAT brings in $583 billion. Exemptions of $83 billion for the low income leaves $300 billion to start paying down the debt. With the $100 billion in spending cuts that the "Gang of Six" agrees to, this is a $400 billion cut in the deficit. This makes it profitable for Corporate America to produce in America. It frees $1 trillion in off-shore profits that Corporate America can repatriate and produce and create jobs.
According to the CBO from last summer if we extend the Bush tax cuts for the rich for ten years it costs $700 billion; if we extend them for everyone the cost is 2.7 trillion. Middle class tax cuts cost us $2 trillion in revenue.
You have to broaden the base of taxation. This means eventually a VAT or national sales tax (or gas tax) is coming. Raising taxes on the rich will not be enough to fix our structural deficit which according to Laurence Kotlikoff may be $200 trillion (no that isn't a typo).
Tough decisions remain but our problems will not be solved solely by taxing the rich; it won't work. Also I wouldn't put too much stock in eliminating corporate taxes and magically creating jobs through a VAT. We should have consumption taxes to encourage savings and help fix our deficit not to "create" jobs.
No thanks, Senator. You want to live in a hellhole, move to one. Quit trying to turn the U.S.A. into one.
That's the age old dream of conservatism, to conserve the good old days of the super rich 1000 families and the rest of us their serfs and slaves.
The republicans want to lower taxes to increase company profits and the income of wealthy, but this doesn't translate into a benefit for the vast majority of ordinary. It certainly does nothing to cut the defecit either.
We should! If we want to turn this country around. You seem confused about who ultimatly pays. Corporate taxes are paid by consumers when we purchase goods and they discourage business development and investment. The wealthy can change the way they make money to reduce or eliminate taxes. The poor make too little to pay taxes.That leaves the rest of us paying the tax bills.
Better yet find another $500B to cut. Move responsibility for education back to the states and cut dept of ed., cut from defense... The list is as long as the deficit.