Wouldn’t it make sense to reward companies creating large revenues? Wouldn’t it make sense to stimulate our economy through re-investment?
I believe that a tax that works with steps on the hind end might bolster productivity and the desire to re-invest in the United States. It would hinder the temptation to create shelter corporations and other off-shore structures to funnel revenues into as a way to bypass excessive taxation.
Defining how much is enough is difficult, but is an issue that should be tackled. As an individual, I would be more tempted to spending more as a consumer if I had more money left. These days I scrape to save and invest knowing that even those profits will be taxed. It’s like having a non-productive partner in my business transactions!
In looking at a business – perhaps taxing 35% up until a certain dollar amount would make sense, then backing off after that threshold is reached to say 30% and so forth until they reach the no tax zone. In theory companies would be inclined to make to that no tax zone but pay their taxes in full up to a certain amount. Currently, accountants are employed to find ways not to pay taxes from dollar one.
I am not a tax expert – just an observer of human nature. I believe that a windfall tax is foolish and will hurt our country. It is punishing excellence and enforcing mediocrity. Our land was built on free enterprise. Stifling re-investment is certainly not the way to go!
An Obama victory in December may trigger huge sell offs of stock and stifle any desire to reinvest – what is more urgent than hedging against a Democrat victory in December is to address issues NOW. The Dollar is tumbling, and little is said about the effects this is having on our economy. You may argue that we can export more – the issue is that we also import supplies and corporations being in the business of profits are also less likely to invest in the United States if they can preserve the value of their capital by parking surplus funds overseas buying Euros. This will hurt us badly and for the first time in many American’s lives, currency exchange rates may have a meaning.
Increased taxation, i.e. FICA and repealing the Estate Tax phase out is simple tomfoolery. The Candidate for Change will have us asking for change!
