Tax Reform

Taxes. Who Pays? Who benefits?

For many years, this party has spoken out against Washington’s terrible Tax system. Generally, it can be described as a way of asking the poor and middle class to pay for most things, while the rich complain about having to pay taxes. This system may look fair on the surface, because it asks everyone to pay the same amount in taxes. But it is rather like a company that asks a low paid worker out to a fancy restaurant as a reward for hard work. Two big bosses take hi to dinner, and announce that in order to be perfectly fair, they will divide the bill equally.

So, the waiter appears, and one boss orders a nice, thick steak, champagne,  and caviar. The second boss orders Wagu beef, pate and mineral water, and the poor guest orders the cheapest soup. The bosses don’t even notice him sweating under his collar as he worries about how to pony up his, “Fair share” of the bill. The bosses congratulate each other on how fair they were.

If we all pay the same amount, those earning the least pay a high percentage of their income.

And, it’s even worse with out Business and Occupancy Tax. Businesses are supposed to thrive and provide jobs, plus provide tax money to operate our state. So, what we do is tax every penny that comes in the door of the business, instead of waiting to see what their profits might be. I’m not encouraging Hollywood bookkeeping  here, but shouldn’t businesses be allowed to subtract expenses like rent, utilities, pay for employees and inventory? What do we do instead? We allow tax breaks to the biggest companies based on the idea that they provide the most jobs. And we don’t even insist that those jobs be in our state.

I believe it would be much more sensible and fair to get rid of all the special tax breaks, then only tax the profits each company makes.  That way, even the newest, smallest companies get a fair chance to survive the first few years when they don’t always make a profit. Especially since small businesses provide more than 50% of jobs in our state.

Let’s try a little fairness in our tax system.

 

Posted by Linde in Economy, 1 comment