Individual and Corporate Progressive Income Tax
is the Source of Congressional Power
Tax Loop Holes to the Highest Bidder
By the fifth grade everybody but the teacher's union understands what percent means. Ten percent of a buck is ten cents, ten percent of a million dollars is one hundred thousand dollars. A reasonable person would apply this to any taxation. Not only is this good math, it is fair on the face of it, and experience has shown (if the rates are kept relatively low) that a flat tax rate produces the largest private economy and therefore the largest public economy.
A corporate income tax is actually a tax on the corporation's customers. On business ledgers taxes are just one more expense like raw materials, advertising, and rent. All of these costs must be built into the prices of the goods and services the corporation sells. Another moment's consideration convinces us that this hidden tax falls hardest on the poor who spend virtually all of their money on food, energy, housing, and furniture provided by private corporations.
Let these two observations sink in. Government officials want lots of money to spend to buy votes. Reducing tax rates, making tax rates flat, abolishing all exemptions, and zeroing corporate taxes is not the best way to increase government revenue. It is the only way. Raising rates slows the private economy and therefore, logically, must decrease tax revenue. In our history, every time tax rates are lowered the economy grows. There is no rational argument against this thesis.
Even if we do the right thing and zero out corporate income taxes, the stockholders still pay
their fair share on their dividends when they pay their personal income taxes.
This being rational and obvious, why does the political class cling to the progressive personal income tax and corporate taxes on profits? Do they want to hurt the poor more than the rich? Do they want to sound like whiny little children:
His piece is bigger! Do they want to dry up investments that create jobs and wealth? Do they not understand what the
% symbol means?
Nothing of reason or mercy motivates the progressive income tax or the corporate tax or our outrageous spending and punitive tax rates. There are three obvious but unspoken motives for these irrational policies:
- Marxist Theories from the 1860's.
- Political corruption A: Buying votes with other people's money.
- Political corruption B: Congress sells tax loop holes and exemptions.
First, the worn out and old fashioned Marxist ideology. It is tiresome to repeatedly point out that this emperor not only has no clothes, he has no flesh and is a mere skeleton of sun bleached bones. After one hundred and fifty years of oceans of blood, dictators, war, suffering, and starvation it is the irony of all history that fat, wealthy, college professors still force feed this nonsense to young students. This is mental rape.
Karl Marx and Georg Wilhelm Friedrich Hegel are the problem. Blaming dictators for misusing Marxism is like blaming bears for tipping over garbage cans. A theology of theses and antitheses, a myth of materialistic determinism, and a shallow interpretation of history are the garbage. Violence is not the most likely outcome of this religion, it is the only outcome.
Class is a Marxist word. As used in Marxist politics in the United States,
race is a Marxist word. Personally, I did not engage in the 1960's Civil Rights Movement to create another voting block for the Democrat Party. I campaigned for the Declaration of Independence, and the Bible, that all men are created equal. So are
seniors phony classes. Any word that takes away individual rights and gives those rights to a group is Marxist. The goofy thesis-antithesis supernaturalism has morphed, in the United States, into factionalism that is tearing apart our founding philosophy.
We do not have classes in the United States of America, except those created by so-called Progressives as voting blocks. There are differing income levels but these tend to track age and location, not birth. In other words, young people have lower wages and their businesses are still taking hold. Old people retire or go on part time and their income goes down. But in the middle years these same people may have, and often do have, larger incomes. So the same person changes
class two, three, or four times in their life. And in free America even those born to wealth that in other societies would be upper class forever, lose their wealth, and therefore their privileges, in a few generations, even a single generation. The exceptions to this demonstrate the power of tax regulations aimed at wages and not investment income.
We are being torn into a multitude of groups and classes for a political reason. Candidates and elected officials use identity politics to promise special rights and free stuff to each and every group in their coalition. They buy, not votes, but voting blocks, whole cities of shaped hostages.
The third reason that the progressive and corporate income taxes are entrenched is the political corruption of Congress. They sell exceptions and exemptions and subsidies to the highest bidder. Large corporations, but not the mom and pop businesses, have office buildings full of lawyers and lobbyists whose sole purpose is to buy senators and representatives. Not only with campaign contributions but also with job offers when they leave office and stock tips and sweetheart deals too complex for the news media hacks to figure out. And that is not a high bar to meet. All campaign contribution reforms (so—called) are meant to protect the secrecy of this system.
Now imagine that the corporation income is not taxed. Will the corporation still give campaign contributions and offer sweetheart stock deals? Why should they? The incentive is gone. All of this corporate and government corruption would fade away.
Observant people will realize that there is still a huge incentive for business to government corruption because of the regulations illegally forced on industry. So corruption would continue as long as the EPA and the rest continue. Remember, like the corporate income tax, the goal is not the stated goal of cleaning up the environment or protecting consumers. Markets and private property are much better at those tasks. But regulations, the harder to follow and the more confusing the better, are first of all another source of power and money for Congress and the President.
Is that regulation too harsh? Let me pass a bill for you to make it right. Buy the way, the address of my campaign committee is… But the subject of regulatory extortion needs a new essay.
Why does this system continue? Because the TV networks and big newspapers are clueless. Because our universities are dominated by politically correct Marxists. Because we let the extortion continue.