Have a Burger King on your 1040
Corporations do not pay income taxes. They consider taxes as just another expense such as wages, parts, rent, interest, etc. The purchaser of a product or service from a corporation pays the tax. After individuals pay their income taxes and sales taxes, should they also have to pay a corporation an additional amount for the product or service so that the corporation can pay a 35 percent tax?
At the present time, the U.S. corporate income tax supplies the government with about 9 percent of its revenue. By reducing this corporate tax to something like 15 to 20 percent, the government may not see a reduction in revenue. Corporations would return foreign profits to the U.S. Prices they offer would be less and when competing with foreign owned companies, they would increase sales, profits and the taxes they pay. This would result in needing more employees who would pay taxes and not have to receive unemployment benefits. It is possible that the government would not see a reduction in revenue.
If, however, by reducing the corporate tax rate, there was a reduction in government annual revenue, it would not even be a rounding error compared to the $17 trillion national debt. Does the government really need a Burger King with your 1040? — HARVEY R. TUCK, HARRISON TWP.
Europe’s economic problems
Re “French leader fails nation and Europe as a whole,” Sept. 1: Liberal Prof. Paul Krugman admits Europe’s economies are in deep trouble, including France. He blames it on austerity, which European countries are attempting to implement to rein in Socialist spending habits. For decades, European populist bureaucrats, prodded by unions have been re-elected by implementing unsustainable liberal regulations, pensions, work rules, benefits etc. The inevitable occurs when Socialists run out of other people’s money; their economies stall while the liberal benefit spending continues to increase.
Krugman believes you spend your way out of trouble. It’s analogous to fleeing down a mountain to avoid being swamped by an avalanche. Unfortunately, Krugman’s solution only adds to the avalanche. And the professor teaches this theory to young impressionable students. — THOMAS SUBLER, VERSAILLES
Thomas Sowell suggests that because of the “disastrous decisions made by President Barack Obama, especially his pretense of stopping Iran’s becoming a nuclear power,” we may “wake up some morning and find some American city in radioactive ruins.” I suppose Sowell’s answer to such a threat would be to use American power to put an Iranian city in radioactive ruins.
Recently, I went to the license bureau in Fairborn to renew my driver’s license. I didn’t know they didn’t take credit cards for payment and decided to go back later. A man offered to pay for my license and said repayment would not be necessary so I sent a donation to Hospice in honor of his kindness. I really appreciate what he did for me.
Canada has lower corporate tax rate and free healthcare. Wonder how they figured that out.
Education and jobs are the two things needed for a functioning future society. If we continue to be organized around making the rich richer instead of having America’s productivity benefit everyone, we will not have the kind of society we want to live in.
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