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Originally Posted by Dom182  Ok, this point is an old argument but is nonetheless true. If you tax businesses and their earnings, who do you think pays for it. That tax is passed on to the consumer. In addition if the tax is too high the corporation will just cut jobs that can be done by others. Last year EXXON paid over 30 billion in taxes. That is more than the bottom 50% of wage earners paid wich was 24 billion. Yes they had immense profits at 40.6 billion that is only 28cents per gallon profit or about 9.3 cents per dollar. It works out to less than 10% profit margin. In addition they plan to spend about 15 billion in further exploration of oil and alternative fuels. Now say we raise their tax. Go up from the 41% they pay now and go to just 50%. Where do you think that9 percent increase is going to come from.
1. Gas prices will go up
2. Exploration and research will go down.
That is just one example. It is the same with any business model. If you tax them at a higher rate something is going to suffer and you can be certain it is not going to be their profits.
What should really happen is the government should cut their spending by 8%. That would enable them to eliminate the tax completely on the bottom 40% of wage earners, without raising other taxes.
I understand the point that our country tends to be stratified, but the fact is those on the top layer are the ones who employ most everyone else. |
Then explain to me how the richest countries in the world that have much more evenly distributed wealth do not have America's tax system? And didn't Clinton already debunk your theories? If what you say is true, then we wouldn't have seen such an economic growth during Clinton's years in office. And don't you dare say that it is because of Reagan. That man set us up for a huge recession of 1987.