So for the last year or so we've been hearing that the economy is in such peril that we've just got to do something about health care, and this, that, and the other to fix all of our problems. Here's the fundamental problem I have. People (not everyone) site corporate greed as huge problem and the solution is to tax them out the wazoo to "teach them" or "punish them" for being so greedy. So to these people it seems illogical to lower the corporate tax rate to "fix things" because that teach corporations to stop being so greedy. The U.S. already has the 2nd highest corporate tax rate in the world and yet we are still in this mess. I know I've touched on this before, but I'm going to approach it from a different perspective hopefully.
Let's start with the recent news from Wal-Mart since they are one of the most popular demonized corporations outside of "big oil." Wal-mart is going to add 22,000 jobs domestically this year.
Before you guys bitch and moan saying they are crappy low paying jobs, "the retailer said the new hires will fill positions across its business units, including cashiers and sales associates, as well as pharmacists, human resource managers and customer service associates."
"The discounter said benefits, including health plans that offer customized health coverage options, will be offered to its full and part-time workers."
"Wal-Mart is the largest private-sector employer in the United States with a workforce of 1.45 million. Its total worldwide workforce is more than 2 million."
Like it or not, Wal-Mart is good for everyone in an economy like this. Not only are they providing all kinds of jobs, but they drive the competitive forces in that industry which keep prices low for all of us that are pinching our pennies in said economy that "is the worst since the great depression." Perspective people, we aren't standing in soup lines as a country. None-the-less, Wal-Mart is helping us stretch our dollars, even if you don't shop there. For that I am very thankful.
Onto the next point about corporations. Everyday people like you and me own these greedy corporations in the form of retirement portfolios, personal investment portfolios, etc. We want them to find ways to make more money because that drives up the stock price, which increases the value of our 401k which drives our ability to retire when we want to, along with the amount we save.
Not only does making more money lead to increased stock price, but it comes as a result of growth. What happens when a corporation grows? They add jobs to help keep up with demand for their product or service. So what if the founding and primary stock holder and possibly the CEO, is greedy. His or her greed ultimately leads to meeting the needs and desires of others in the form of increased stock value, or jobs. Does this make them evil? Does this warrant increasing the tax rate on a corporation?
Let's take a look at what happens when you raise the taxes on a corporation. In order to do this, we must ponder who pays these taxes? It's publicly owned. Say you own shares of stock. You pay taxes on any capital gains. Don't tell me you bought that stock with the intention of losing money. You wanted to make money. By logic being discussed, doesn't that make you greedy? So you pay taxes, but you aren't the only one. There are income taxes, but you probably don't think they count since we all have to pay income taxes as a reward for working!!! So I'll move on to payroll taxes as a result of employing people to pay for such things as social security and medicare, etc. Remember all employment costs get calculated into the cost of goods sold. So employing that knowledge, (don't believe me, ask a business owner) in order to make money, (which is the ultimate goal of any business, even nonprofits) they must account for income tax in the price of their goods. Now I know that the value of a good or service is what the market is willing to pay for it, but if they aren't making money after taxes, they aren't going to stay in business long because it won't be worth their time and effort. In all actuality the corporation is collecting taxes from you the consumer to pass along to the government. So you are the one getting taxed out the wazoo not the corporation. Corporation is a word, it's not a living breathing being able to make money and pay taxes. It is a word that is made up of people that have ownership interest in a group of people doing work for another group of people who pay for that work, and all 3 groups are the ones paying the taxes. So if you raise taxes on corporations you hurt all 3 groups of people.
So am I to assume that hurting people is the solution to the problem? Cutting spending sounds more logical to me.
On a side note, I'd like to see a copy of the cleared check to the IRS that person, who voted in my poll on the left, obviously must have sent to the IRS in addition to his/her current tax bill. Odd thing is, is that someone actually made that statement to me that they were willing to pay more taxes, and so I said fine you can pay ours.
Am I greedy? If wanting to keep my hard earned money to provide a reasonable life for my family without relying on the government to take care of me is greedy, then damn right I'm greedy!!! And I make no apologies for it. But I define greedy differently. I think greed is wanting what isn't yours for nothing. For example, if I want someone else's money, without providing them something in exchange for that money, that's greedy. It's also damn lazy. Business works by an owner paying his/her employees money in exchange for work they do for them. In corporations if you think the leadership is too greedy and not worth the money they are paid, then you have the right to vote at the annual shareholders meeting. So do it.
Who do I think is greedy? The government and the politicians sick with power running it. They take money from us all the time and provide us with practically nothing in return. They use our tax dollars to buy our votes. And we continue to let them. Why is this so difficult to understand for some people? I'm not saying that there shouldn't be a certain amount of taxes collected for infrastructure and military purposes. I'm even ok with some limited temporary assistance programs. But it's a way over-bloated system. With the Fair Tax, anyone receiving assistance is still paying taxes to help pay for these programs. I'm not going to go into the fair tax but look in my previous posts and you'll find a post on it if you're interested. Or just check out the website.
That's all for this rant. What do you think? Is corporate greed a problem?