Brewha wrote:As a someone who votes Democrat, I’ll tell you the problem is too much of the tax burden is on the middle class. And that large corporation and the wealthy do not pay what they should as they have lobbyist and in general own officials that can see to their interest at the expense of the middle class.
And while I’m at it; I’ll tell you that the mega churches and their businesses should be taxed. This is because I’m no only a crazy liberal but and agnostic as well.
Don’t disagree that the middle class shoulders a large overall percentage of the tax burden. But, the notion of ever collecting a statistical significant portion of taxes from the corporate sector has been, currently is and forever will be a pipe dream.
The corporate tax rate is 21% on net earnings. Yet, as evidenced by the second article I sent you large corporations will NEVER pay that rate and in most cases nowhere near that rate. Why? As sure as taxes or increased or some credit expires a new credit will take its place. Congress “fixes” loop holes only for 3 to take its place. Then Congress bickers over the new loop hole for x number of years. Then closes it. However that closing is usually offset by something new. Or savy accountants figure a way around it. Lather, rinse, repeat.
However, suppose Congress finally gets it right. A perfect and equitable tax code is by some miracle born. Now corporations have to pay their fair share. Well that’s going to play havoc on their share price. Investors are going to start looking for new stocks whose sale price was least affected. Do you think these formally greedy corporations are going to be satisfied and tow the new line? Doubtful. They will simply start raising prices to offset after tax earnings drops to push their share price as high as possible back the their prices before this new tax.
So now we’re right back where we started. The middle class shouldering too large a burden because they are paying a new tax. However, it’s not an income tax. It’s an inflation tax. So when it’s all said and done what was accomplished? Probably very little.
I forget what caused it but I remember when Biden was touting what has become known as Bideomics he promised lower taxes on people whose earnings were below a certain threshold. The reality is that program actually raised the costs born by the middle class.
The answer is to not keep increasing corporate taxes in an unending search of some holy grail solution that doesn’t exist. It would be far wiser to find a way to disincentivize retained corporate earnings. By doing so more dollars enter the economy and as a nation we benefit from the multiplier affect. It sounds like Reaganomics in a way but with some tweaks. It needs to ensure that money currently removed from the economy is brought in to the economy.