Remember that corrupted governments always call for taxing the rich, the same people they serve, knowing full well that it is always the end user that pays for it. Why are the same corporations that Hillary is railing against, the ones that are heavily financing her election? Why have they ignored Trump?
Let me list some facts as I see them.
1. The richest Corporations in America are multinational.
2. These same corporations earn substantial incomes outside of the US
3. These same corporations are the financial backbone of the Federal Reserve Bank, a privately owned corporation which makes billions of dollars on US (taxpayer supported) debt.
4. These same corporations are the financial backbone of the US Chamber of Commerce, arguably the largest lobby group in US history. They infuse billions of dollars annually in the pockets (campaign funds) to sitting members of Congress and the presidency.
5. Their donations do not come without expectations for favors and political payback. We by our absence in the political arena have allowed them to make laws allowing them to first accept these monies and even worse yet keep leftover monies for personal benefit after they leave office.
Let’s look at the effect of raising taxes on these wealthiest corporations with large incomes outside our borders. We will look at it at in two different scenarios. A healthy and robust US and world economy. A stagnant declining US and world economy.
Here is how they handle current taxes and tax increases in a robust economy where the average consumer has lots of disposable income after meeting their obligations. The average consumer is you, Mr, Mrs and Ms middle class American.
1. They do NOT pay taxes, they are well paid for collecting taxes from you and I. They give your hidden tax dollars to the appropriate taxing authority. This unhealthy alliance between the biggest business and YOUR elected representatives have allowed them to grow government, increase regulations that hinder the average American from venturing out on their own. Note two household named companies both started in a garage with little to no start up costs, you may recognize their names. Hewlett – Packard, better known today as HP and Microsoft. What chance is there today with the high costs of business mandated by government and much of it mandated by unelected bureaucrats who have little or no constitutionally mandated oversight.
2. Taxes increase their profits. Their profits are a set percentage over their hard costs to bring their products and services to the marketplace. In a robust market you the consumer pay little or no attention to the incremental increases in your goods and services because you have ample disposable income. You have been conditioned to believe it is a result of inflation and say oh well, it is part of life.
3. These corporations use a portion of these profits to buy more influence in the halls of government. They ask for special contracts that are negotiated rather than be put out on the open market where more people would have the chance grow their own business at a reasonable rate of profit for less cost to you the taxpayer. This unholy and unhealthy alliance has done more and still is doing more to create the chasm between the wealthy and the working poor. We Americans are quickly becoming the serfs of America. The majority of our ancestors fled their homelands to come here to escape from being poor serfs elsewhere.
4. The results of this is and has been the voluntary fleecing of all working Americans.
Here is what happens in a down economy where government’s voracious appetite to spend our hard earned incomes get pinched and strained. Our government, those whom we have so blindly elected are unable to curb their thirst for power and control. They begin to pass laws with hidden and insidious taxes in them and at the same time they borrow money to operate the government under the guise of trying to rescue and save the economy. These same corporations are the backbone of the Federal Reserve Bank who eagerly supplies money to them in exchange for a never ending source of interest payments using you the taxpayer as collateral. Here is how these corporations now function.
1. They have to cut their costs and expenses to maintain their level of income. This means layoffs and reduced hours for the very people who have given them such great wealth.
2. They find countries overseas who will allow them to bank large amounts of money with little or no tax liabilities.
3. They are always evaluating up and coming companies. When these companies can no longer sustain themselves due to increased taxation, over regulation and a declining sales market, the big boys offer them pennies on the dollar for their value and gobble them up in preparation for the next market recovery. Taxes and over regulation costs cannot be absorbed by these companies who are often on the cutting edge and without this unholy alliance could become the next household name of excellence and success.
4. Once again you the American taxpayer are the real loser. Wealth becomes less a possibility and dependence on government and or corporate welfare is stripping this nation of our lives, liberty and our individual pursuit of happiness and self worth.
This begs the final question of how much longer will the people sit idly on their hands and allow the complete and total theft of the American dream, the American ideal, real and equal opportunity to succeed with honesty, ambition, respect and integrity for the nation and way of life that was created by our Founders for US all? It is time to replace career politicians with public servants we have chosen from among our peers and not those chosen as acceptable by the big money that owns both major parties.
By Michael Bowman
Patriot Institute Contributing Columnist