To clarify, we don’t need uniform taxes in the essence of taxing uniforms, but by the way of making them equally applicable to everyone. Here is a brilliant synopsis by my friend Rex about how the current high tax rates on corporations really plays out. Hint: it’s not hurting “the rich.”
“Big Corporations have a huge advantage in raising capital because they can take people’s money and give them limited liability. Big corporation executives have huge advantages in tax rates because they can use incentive stock options to defer taxation on capital and tax most of their salaries at capital gains rates instead of ordinary income rates.
If a small corporation borrows from the bank, the shareholder will have to sign a personal guarantee, so the small corporation guy usually doesn’t walk away free when something fails like the big corporation guy. The preferred way for small corporations to raise capital is through prior earnings, but if the government takes half their earnings in taxes, or more, it gets very difficult for the small corporation to control its own destiny without having to resort to banks, brokers, underwriters, public shareholders, and everything else that will limit the way they can use their ideas, which they are usually pretty attached to.
Big income taxes, for those reasons, and others, are not a tax on being rich, but on getting rich. The middle class doesn’t want to stay in the middle class, and that’s the source of a lot of incentive, being able to do things your way and control your own destiny.
That’s what the income tax system is destroying in America, the economic liberty that brings a ton of innovation. That’s why big corporations do all the things to us we don’t like, because big government gives them unfair advantages. Living in a homogenized society may not be the most terrible thing, everyone working in cubicles with a 401k and doing it the way someone else wants it, but that isn’t what made America what it is. It was never meant to be a place where people were stamped out uniformly like postage stamps, standing in long lines at McDonald’s.”
So, high taxes don’t do anything to the already rich, but they sure do keep people down. This is one minor example of how the rhetoric doesn’t match the actual results of a policy. “Tax the rich” equals “keep people down and help the rich.”
Do you want policy that sounds good but hurts the average American? Or do you want policy that delivers?
Know where you stand.