Hooray For Tax Cuts!

Hooray!  New tax cuts.  Despite the ever growing national debt and deficit, the continued need to fund the Iraq war, and the apparent need to spend some money on our infrastructure (as was made apparent by first Katrina and then the collapse of the Minneapolis bridge), Bush is ready to roll out even more tax cuts.

Don’t get too excited though, they aren’t for you and me.

No, these will be corporate tax cuts:

President Bush said yesterday that he is considering a fresh plan to cut tax rates for U.S. corporations to make them more competitive around the world, an initiative that could further inflame a battle with the Democratic Congress over spending and taxes and help define the remainder of his tenure.

Advisers presented Bush with a series of ideas to restructure corporate taxes, possibly eliminating narrowly targeted breaks to pay for a broader, across-the-board rate cut. In an interview with a small group of journalists afterward, Bush said he was “inclined” to send a corporate tax package to Congress, although he expressed uncertainty about its political viability.

This, as the article points out, coming at the end of his administration where everything else he’s tried in every arena has ended in shameful failure, most likely an attempt to get at least anti-tax Goppers back on his side.  Oh, and I suppose he’s trying to help American corporations out too.

But, I think we could help American corporations out equally well, maybe even better if we retooled free trade to be fair trade thereby increasing the competitiveness of the American Worker in the new global economy as well as shifting tax relief away from the rich, a good source of revenue for the government, to the middle and lower class who would be hurt considerably more by increased tax rates for less revenue.  This would in turn increase the buying power of the middle and lower classes, making them more apt to be able to afford American made merchandise and services, providing more income to American companies.

We could invest in education to make our workers more adaptable to the moder job market that is making a general shift away from manual labor to help non rich Americans find more fruitful means of employment, again making them more adept at supporting American companies.

Also, believe it or not, we could also probably help out corporations by increasing certain regulations as opposed to decreasing regulation.  Seriously, American made products are already more expensive than imports a lot of the time, let’s at least make the money’s worth.

Then there is this whole “going green” fad that maybe the president and the corporations that he loves so much might want to actually look into.  It’s a new industry that no one really seems to want to look into which I find absolutely astonishing considering there could be millions of American jobs just waiting to be created, new resources, and new businesses.

The fact is, corporate tax relief is a band aid to the problem, and in no way an intuitive solution.  I’m not necessarily saying all my ideas above are exactly feasible, but at least they’re worth the debate to actually make them so.  But that would be work, and require actual thought, and this president doesn’t like that so I guess I should wait until the next president, huh?

Note: Others blogging this courtesy memeorandumThe Atlantic Online, The Carpetbagger Report, Crooks and Liars, Washington Monthly and Oliver Willis

3 Responses to “Hooray For Tax Cuts!”

  1. I like to suggest that the corporate tax rate be cut to zero in a revenue neutral way, e.g. tax dividends and capital gains (re-valued every 5 years) at higher levels, e.g. at standard income rates.

    I don’t know what the ratio of these is, but it would make our tax structure simpler, and would not be unreasonable to just reflect the corporate profits in the “effects” to the stock owners. In addition this would reduce the class warfare between the wage earners and the capital owners that the current adminstration is waging.

  2. Hey Mike. Alright, I’m going to toss out a quick disclaimer right here and now. I am in no way shape or form anything even resembling an economy wonk. So, with that in mind, can you run that by me again one more time. Go on and explain it like I’m a two year old. I’m not a wonk, but I learn fast.

  3. Actually, now that I reread it, let me take a crack.

    So you want to eliminate all corporate taxes, however you want to gain that revenue by upping the taxes, essentially, on the rich people who own the corporations?

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