No entity, individual or corporate, benefits more from government than mega-corporations. Individuals earn income mostly from wages and pay income tax, SSI and Medicare payroll taxes, with very limited deductions. Corporations only pay income taxes after deducting operating expenses including very generous depreciation allowance. Net cash flow for a corporation is much greater than an individual can expect from individual gross earned income because an individual must pay for non-deductible living expenses like food, clothing and rent. An added benefit for corporations is the copyright and patent laws which allow corporations to extract inflated prices from consumers years after corporate research investment has been paid off. Finally, transnational corporations spend billions on accountants and lobbyists to figure out ways to rig the system and recognize income, not where it’s earned, but where the corporate taxes are low or non-existent. When Caterpillar’s spokesperson responded to a congressional committee: “We are paying all the taxes required by law,” she forgot to add, “that our lobbyists wrote in our favor.” In short, corporations should pay a much higher percentage of net income than individuals pay on their adjusted gross income. Instead, we are giving transnational corporations’ unlimited access to the American market while letting them shift income and cash flow overseas. How dumb is that???
Posted on: Mon, 28 Jul 2014 13:41:55 +0000
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