Our current tax code has much more to do with social engineering and much less to do with financing the country. It is both the carrot and stick that makes happen what our so called leaders want to happen.
Want a new wind turbine? Tax coal fired power plants, and give the receipts to a wind farm operator. Want to stop smoking among the young? Tax cigarettes at a rate that makes them nearly unobtainable to the underemployed. Want to get the housing industry jump started? New home owner tax credits. Can we all agree that this seems to be the plan? It is certainly what has been done. I have plenty of experience with the two latter examples and they worked as planned. The first is only speculation on my part, but the thousands of turbines I pass every week lead me to believe that project has taken off just fine as well.
So if you wanted to keep corporations in the U.S. what would you propose a government should do as far as tax code is concerned? How would you go about driving an industry off shore if again taxes were the tool you chose to wield?
If you are able to see the former why can you not see the latter?
Does it really matter who pays the freight and were the payment is made from? Are evil corporations able to print money? Do they raise all tax payments from sales? Price to bring a product to market includes the tax liability. How would you go about raising the cash to pay taxes if you were a business owner? Sell your wifes jewelry, pawn your kids bicycle, sell the boat and motorhome? Sure, that will work once, how about next year?
Lay off a few less productive employees, like Sid who having been with the company 35 years is now sweeping floors and emptying waste cans. Sid is liked by the entire staff and it is heartening to know some day you might just have Sids position. Well guess what, every department has a few spare moments to empty the trash, and a broom is available to clean your own wok station, and Sid can go pound sand. The tax man cometh. Now the third year gets to be a problem now doesn't it?
The toys are sold, Sid is off pounding sand somewhere, and the tax man has assured you he will be returning again next year. What is left to do I ask? Raise prices (will the competition allow that)? Abandon the facility and move production off shore (thereby avoiding the tax burden and possibly lowering wages as well)?
Winchester has moved assembly to Portugal. Red wing shoes are easily double the price I once paid, especially for the U.S. built product. Filson clothing is off the hook price wise and quality too, but damn, $370 for a simple wool coat? They have a few foriegn made clothes these days too. These companies have chosen to stay in business, how many have gone tits up?
A goodly half of my check is sent to some government entity at the end of the day. I don't think the government is able to spend my money as wisely as I can. Maybe some are too damn dumb to spend their money "properly" I am not one of those. I want my money back. Let me decide if Apple is making too much profit for their product. I can choose for myself if GM should still be making autos. Apple deserves to be making large profits GM as well if they start building a product that is worth the price charged.
Ask yourself this. Who should be blamed, the professional athlete asking for millions a year for throwing a baseball. The owner for writing the check? Or the athlete for cashing it?
