From: Michael Lorrey (mike@lorrey.com)
Date: Mon Dec 14 1998 - 12:16:49 MST
Josh Glasstetter wrote:
> >Also, governments can exist just fine with very little or no taxation.
> > Look at the US up until 1913 or so. Hell, look at the US up until
> >the early 60's. I think families paid less than 10% of their income
> >in taxes up until the Democrats decided to create a Welfare State.
>
> absolutely not! the reason working families pay so much is because the
> share of the tax burden funded by corporations has decreased from around
> 40% to 10%. they've bought off enough politicians over the years to exempt
> themselves from countless taxes. so while the standard of living for the
> average American has stagnated, and decreased in many instances, American
> corporations are pulling in record profits and are receiving more in
> government welfare than individuals. and how did this happen? a privileged
> few running unchecked in a ruthless battle to the top, stepping all over
> the American public in the process.
Oh please. You've bought into the dummycrat propaganda. They make you think
that if the government lets you get away with paying less than they think you
should that your stealing the government's money, ie you are getting a
subsidy. The idea of 'corporate welfare' is a crock made up by liberals trying
to sheild the last of the real welfare state by trying to weave a concept of
'moral equivalence'.
The corporate tax level is still up in the 30-40% range. Fortunately, it is
only a tax on profits. It would be nice if families could only pay taxes on
their family profits, eh? In that respect I agree that families are getting
the shaft. What is worse about corporate taxes is that with the exception of
Subchapter 'S' corporations, corporate earnings are taxed TWICE at the 30-40%
range each time, first as a corporate profits tax, then as capital gains tax
on the individual shareholder's dividend earnings and any increase in value
when the stockholder sells the stock. Now, since the average profit level for
corporations is around 5% of gross revinues, then the average taxes paid, as a
percentage of gross revinues is around 2.5%. Additionally, this is all
dependent on profits. However, it does not include other taxes, like sales
taxes, FICA taxes on employers, property taxes, and value added taxes.
Additionally, if one company owns another company, the the shareholders only
get earnings on the owned companies after it has been taxed twice, then they
get taxed too.
And in the end, all corporate taxes get passed on to you and me, no matter
whether we are customers or investors. The concept that corporations are
getting welfare means that we are all getting welfare indirectly.... how does
that grab you?
Mike Lorrey
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