What is going on here

Tuesday, August 16, 2011

What is going on here

I can’t believe this is an issue in this country. Our economic system was created because the men that founded this country had experienced exactly what progressives are wanting. They want more taxes to punish those successful individuals in our society that have done so well in meeting a need of society that they have become flush with money earned as a result of their efforts.Punitive taxes do not work, they just stop production. If they stop production, they stop employing people. Entrepreneurs will not risk their hard earned dollars if there is no return on it. 

What I am reading and hearing is a desire for hard working people, that have succeeded, to be punished because of nothing more than their success at what they do.

Keep in mind that corporations do not pay taxes, they just pass them along to the final user, you and me. If you want to pay more then you go ahead but I don’t care to. I'll bet that virtually all of you shop for the lowest cost on most items. This is the reason that many of our jobs have gone overseas in the last few years. In addition to the high cost of production caused by unions, the tax burden is another huge disincentive. Our corporate tax rate is the highest in the world, has become too high for them to remain competitive with the rest of the world in our world economy. They are driven away because the American consumer wants the lowest price possible. The more you raise taxes, the higher the sale price is and you will have to admit that you, too, shop by price. We all do. The sale will go to another company that sells it for less.

Corporate tax shelters are nothing more than Congress trying to give the corporations a break in their cost of production. Many are incentives to our companies to maintain production here. Many corporations make no money in the U.S. and their entire profit is made overseas but we still benefit, even though they would pay no U.S. taxes on the income from overseas. ExxonMobil, for instance, pays an 85% tax rate on income from Nigeria where they produce oil. Their overall tax rate is 36%. Many companies pay a much higher rate. Chevron paid 41%.

Why should someone making more than you pay a higher percentage tax? They have worked as hard or probably harder to make that money. They have earned it through their hard work. The only possible answer is that they need to be punished because they made so much and others didn't.

I am sorry for going on this long but this bothers me a lot to hear/read of people that want to change the way this country is structured. We don’t need Socialism/Communism/Marxism here. That is the way we are headed and we must stop it or we will all suffer immensely.