Thoughts on Taxes

Here are some basic thoughts on the subject of income taxes. This is only a very basic outline, just as I wanted it to be.

“Rich people” pay a much higher percentage of their income in taxes than I do, and that percentage is always going up. Because of this (along with costly labor union mandates) many big business owners have been outsourcing overseas where they have incentives to grow as a company rather than consequences for growing. Consequences like getting slammed with higher and higher tax rates as they do in The States. Outsourcing is clearly not an evil plot against America on the part of the business owners; they are simply doing what they must in order to protect their bottom line and their investors. Lower the tax rate for big businesses and you give them an incentive to stay here and grow. And if businesses grow, then they will need to hire more people, thus creating more jobs. This, Rachel Maddow, is economics 101.

Now Republicans are not and have not proposed actual tax cuts for the rich in a very long time. When you read about “Republican tax cuts for the rich”, that is simply demonizing the party through a play on words. The so called tax cuts that Republicans are proposing are, in fact, only stopping the tax rate increases for job creators (a.k.a. “rich people”). This is an attempt to give the “rich”, “corporate”, “big business owners” an incentive to grow and create jobs. There are many companies that have grown to a certain point and then been forced either reduce or outsource, because they know if they remained stateside, and grew any more, and made any more money, they would find themselves in a new tax bracket and the subsequent tax increase would cause them to take in less than they would if they grossed less. And remember, if companies stop growing, they stop hiring.

Democrats want higher tax rates for the rich and lower rates for the poor. According to them, this would bring in more revenue and put dollars back in the pockets of poor people. Looks good on paper, but the problem is that most poor people work for rich people and, if those rich people are taxed to the point of needing to outsource or cut back, then the poor people lose their jobs. Secondly, most poor people (if they have any children) are already not paying anything in for taxes. Or at least they get it all back at the end of the year. For years my wife and I were included in this category. We would pay our taxes in and then get it all back when we filed. If our tax rates had been any lower, we would’ve been getting payed by the government (we actually did one year). On the other hand, if you try to tax the owner of the company that I work for too much, he may feel the need to build a production plant in Dubai, where he won’t pay income taxes and will receive all kinds of incentives to grow and make more money and hire more people – more people in Dubai. And consequently, I would lose my job.

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3 thoughts on “Thoughts on Taxes

  1. Excellent argument! I’m so impressed with how clearly and succinctly you stated your points with clear logic instead of just a tirade of blows to either one or the other party. Well done, Dinkerson! 🙂

    Once again, I’m left here thinking, “My, but he does have a way with words!” Great post!

    Like

  2. Dink,
    Sorry for the delay, but I’m having a difficult time getting past the second paragraph for the following reasons: 1) Relating personal tax to business tax is apples and oranges (well, at least to me) … 2) Although we (US) have a high initial tax rate for business, let us not forget the effective tax rate they have after the credits – which happens to make the US competitive.

    Like

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