The tax plan cuts the business tax rates and simplifies the process of filing, meaning that companies can devote more time and effort to their business and less to finding or lobbying for and creating tax avoidance loopholes. It doesn't just apply to the largest of corporations, small business will be able to take advantage of them to, meaning that the chief driver of new jobs in America will be getting a boost.
Today, America has the highest corporate tax rate in the Free World, currently taxing at a rate of 35%. And we find ourselves competing with other nations with rates as low as 15% while we wonder why American business likes to outsource and move corporate headquarters out of the country. It doesn't take a rocket scientist to realize what the problem is, but of course, when you are looking for a witch behind every tree you can never focus on the real problem. Who wants to talk about something important like taxes when you can divert attention to Michael Flynn?
And then, of course, there is the question of who pays the taxes, the corporate entities or the people who buy their goods and services. Well, they do write a check but it's a pass through. They merely add the tax bill on to the cost of the products and services they sell and that means you and I pay those taxes. No matter how much you might despise them, the only way a business stays in business is to turn a profit, and a profit is what they are going to do. And if you think running them out of business is the answer, try turning the goods and services business over to the government and see what happens. Visions of the old Russian GUM Department Store dance through my head with throngs of people going through empty shelves looking for something to buy. Or if you want a closer example, both in terms of time and location, take a look to the south at Maduro's Venezuela where people initially couldn't get toilet paper but now are literally starving to death. When there is no incentive to work and produce, no one works, which means goods and services are no longer available.
But for those of you who oppose the plan, you may not have to worry, for by the time Congress gets through with it you may not recognize it. Why? Because Congress is a creature which represents the two extremes plus everything in between. It all depends on who you think really is entitled to the money.
If you are a Conservative, you believe that the fruits of your labor are yours and that taxes should be limited to the specific things that the Constitution allows the central government to do and even then only after finding the most cost effective way to do so. If you are a liberal, you believe that the fruits of your labor really aren't yours, that they belong to the state and it is for the state to allow you the privilege of keeping a small portion of it after they've allocated most of it. And even most liberals, privately, really don't buy that argument with their own money but they certainly will apply that argument to yours. If you don't think that's accurate, think about the Great Society, not long ago celebrating its 50th anniversary. And what does it have to show for itself after all those years. The answer is very little, for after spending over $23 trillion dollars of our money, much of it going for overhead and handling, we find our welfare society growing and growing and individual freedoms disintegrating. You can agree or disagree and that's fine, but if you dig deep you'll know that it is true.
Tomorrow we'll look at individual tax cuts and what they mean to all of us. I'm cautiously hopeful, but also pessimistic about what will come out of the plan. But at least Trump is trying, that's more than I can say for our recent past attempts to tame the beast of power. See you then.