Capital gains and corporate taxes

“Corporations are people, my friend,” said Mitt Romney on August 11, 2011. If they are people and can buy and sell politicians and elections with money as free speech, per Citizens United, then they can damn well pay taxes at the same rates imposed on real people. The argument that taxing corporations hurts job creation is BS; the real job creators are the people employed by business to make goods and provide services. They in turn are paid wages and salaries which allow them to purchase goods and services. That demand creates jobs. No demand equals no jobs, no matter how low business taxes are or how much money business possesses.

The size of the organization or its legal form does not change the obligation to pay a fair share of taxes. Imagine the situation of two individuals providing the same service side by side in the same city. One is incorporated and one not. The individual pays taxes while the incorporated person would not. Is that fair and equitable? NO, it is not. The business community and its wholly owned subsidiary, the GOP, are advocating cutting the corporate tax rate to zero. That is the wrong direction to go.

I hate taxes, but I do not consider taxes as theft as some on the right claim. Taxes are necessary so that we can live a civilized life with neighbors rather than as hermits shunning our neighbors. After long deliberation, I have concluded that the graduated income tax is the fairest tax of all. All income, without exception, should be subject to a graduated income tax. What about the capital gains tax which is considerably less?

The capital gains tax is used mostly by the wealthy to pay a lower tax than they would if the income were taxed as income at progressively higher rates. This provision in the tax code allows the wealthy to accumulate wealth at a faster rate than if they earned the income by working for it. It allows the wealth difference between the 1% and the 99% to increase. Therefore, I believe that everyone, individuals and corporations, should pay taxes at the same rate no matter the source of the income, wages, salaries or capital gains.

Advertisements