Friday, February 24, 2012

I'm Sad To Say Obama Is Pandering On Corporate Tax Cut

By Manifesto Joe

The fundamental dishonesty of the Mainstream Media business press tends to come out at times like this, as President Obama is proposing a cut in the U.S. corporate tax rate, down from the stated "35%" down to 28%. Unfortunately, this is when the fundamental dishonesty of many politicians comes out as well.

The MSM business press, while widely reporting that the current U.S. corporate tax rate of 35% is among the highest in the developed world, fails to report that two-thirds of American corporations aren't even paying it -- or anything at all, effectively. They acknowledge that many corporations, because of loopholes, don't pay an effective rate that high. They fail to report how prevalent, and how widespread, that failure to pay is. It's so bad that two-thirds of them basically pay NOTHING.

Don't believe it? Here's a link.

I can provide many others. Suffice it to say that two-thirds of U.S. corporations, according to numerous studies, have been shown to dodge federal income taxes to such an extent that their effective rate is little or nothing.

What Obama proposes, as I understand it, is to cut the nominal rate from 35% to 28%, with the trade-off of closing a lot of the loopholes that have permitted corporate giants in America to get by year after year paying virtually nothing. Sounds like a reasonable trade-off. I'm a political realist. So, on the surface, it sounds quite pragmatic.

But Obama's plan, again, as I understand it, would introduce a new set of loopholes into the mix, after closing some of them. While additional loopholes, for "green technology" companies and such, may seem like a good idea, it's an idea best left for a time when our federal government can actually AFFORD such breaks.

Granted, one of the nastiest pieces of Republican demagoguery is blaming the current accumulation of national debt on Obama. During Reagan's presidency, the national debt TRIPLED, from about $1 trillion to about $3 trillion. During the absurd "presidency" of Il Doofus, the national debt doubled from about $5 trillion to about $10 trillion while this imbecile was busy doing something that was tantamount to -- well, if FDR had decided to invade Argentina after the Pearl Harbor attack. That's about what the Iraq invasion amounted to, in hindsight.

But now is not the time to introduce any new proposals for loopholes. After 20 or so Republican debates, some of us have a general idea of how batshit crazy most of their "hopefuls" are.

(At the most recent debate, Ron Paul was asked to describe himself in one word. His choice: "Consistent." Yeah. Consistently insane.)

Some of us are looking desperately to the president for leadership. I like the man, but I've been disappointed. I hope to see MORE of the best stuff from him.

Contrary to what Darth Cheney once said, deficits DO matter. America can't afford to run up too much more. As nice as breaks for "green" companies would be, we've come to a time in which all and everyone must ante up.

I understand that Obama is running for re-election, and that he must "dance with them what brung him," as the saying goes in Texas. But now is the time to see statesmanship from him, not pandering. Everyone must share the sacrifice. And that means everyone. Close the loopholes for all, and please, please, don't introduce any new ones.

Manifesto Joe Is An Underground Writer Living In Texas.

1 comment:

Cletis L. Stump said...

By the time the lobbyists get through with the legislation, it will still look like swiss cheese. I lol at the Ron Paul crack. Consistently insane is right. Newt's "cheerful" depiction after he warned of terrorist armageddon 48 times was also hilarious. I'll reprint this next week.