Politics - Liars and Their Followers
Let's look at taxes.
A politician says, “The rich must pay their fair share!! We must close the tax loopholes.”
Many people get on board. That’s what they want to hear. There is no search for truth.
They hear that big corporations are making billions of dollars and paying a lower percentage in income taxes than poor individuals. They are outraged. Something must be done!!
Words are powerful. The words “tax loopholes” seem to conjure up images of corporate tax attorneys combing through tax code to find a misplaced comma that allows the corporation to reduce their taxes. In other words, they find mistakes in the tax code. Is that really what happens? Think about it.
Think about two kinds of “tax loopholes”. One is a payback to companies for donating to a politician’s campaign. It is intentionally written to provide a benefit to the corporation. The other kind of “loophole” is to incentivize companies to provide a public good. Examples include deductions for providing green energy, reducing carbon footprint, investing in new technology, etc.
When the tax rate is raised on corporations, the deductions are simultaneously increased. The corporations rarely pay more because the tax rate went up. They just take advantage of the deductions.
The politicians continue to say, “Corporations don’t pay their fair share. We must close the tax loopholes.”
Their followers are outraged. Something must be done. The cycle continues.
Now there is talk about increasing the deduction for state and local taxes. Why raise the deduction? Because the rich want to pay less. Politicians in states with high taxes want to reward their wealthy donors.
Now let me ask you. Should the government be in the business of business? Should the government provide services to compete with private business? Should the government pay private business to provide public good? Is it better to provide deductions for public good and allow businesses to compete to provide the public good?
I don’t think it is fair for government to compete against business. I am in favor of government paying private business for public good. Building roads is a good example.
I’m not opposed to providing incentives to businesses in the form of deductions to pay for public good. I am opposed to deductions which are really payoffs to politicians to help buy elections.
I’m opposed to politicians who say, “business must pay their fair share” then give favors to their donors. Is there any doubt that the politicians and their donors laugh behind the backs of their followers?
If you want higher taxes on corporations, fine. If you want corporations to provide public good, fine. If you want to incentivize certain types of investment, fine. Stop thinking the evil corporations are finding “tax loopholes.” If they are taking advantage of deductions to provide public good, be happy. If they are taking advantage of deductions granted by lying politicians, stop voting for lying politicians.
Don’t be so easily duped.
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