Business does not pay all the taxes in the US, not even close.

Yawns. Where do you think those consumers get their money from, Jack?

(Answer: The businesses they work for.)

Thus, business activity pays for pretty much 100% of everything in the US. That’s true in any nation. They either pay taxes directly through the corporate income tax, or they pay it on a pass-through basis in the income taxes paid by their employees.,

It is 100% counterproductive for any political entity who says they want to improve the plight of the citizen to work AGAINST the entities that employ them. In fact, it’s not just counterproductive, it’s malfeasant.

But no one owes us “job creators” anything more than what is fair, and particularly in the US, the large corporations are NOT paying their fair share.

On that we agree. The convoluted, complex corporate tax code allows the largest businesses to avoid a large portion of their taxation. There are two ways to fix that.

  1. One would be to flatten the corporate tax code so all businesses, more or less, pay about the same in corporate taxes. Both parties have suggested that 20% is a decent target for that reform, although I personally believe we’d be more competitive at 15%-ish or so. At any rate, you can get to 20%, it seems, in a revenue neutral fashion by abolishing most deductions and lowering the rate to 20% or so.
  2. The second way would be to eliminate the entire pass-through charade, abolish the corporate tax entirely, and raise personal income taxes across the board until you’re revenue neutral. That’s probably even fairer to all parties, although politicians would gag on it.

Hope that helps.

Data Driven Econophile. Muslim, USA born. Been “woke” 2x: 1st, when I realized the world isn’t fair; 2nd, when I realized the “woke” people are full of shit.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store