Wednesday, June 19, 2013

Tax Reform? No Way.

       On MSNBC's Morning Jo this morning they made a good point that trying to tax the rich does two things. First it causes those wealthy folks to move their financial lives off shore. So we don't get any taxes at all. Secondly all that's left is small businesses to pay those higher taxes, thereby cutting the potential for new jobs. I still have a problem with this one, but assuming it's true, then that only leaves the middle class to pay all the bills. The poor still can't afford any tax. Which is another discussion.
       So why is it then, that neither left nor right seems to want to change the system? Oh, to be sure, both the Republicans and the Democrats demand change. To get to tax reform, now. Yep, the politicians agree wholeheartedly with this idea. We must reform our tax code to make it more fair. Democrats want the rich to pay more, the Republicans want tax relief for the rich.
       But if you peel back the layers of polititalk what you find is that, since both sides are financed by the rich and mainly by rich corporations, there's no real desire to change the system. That's because most giant corporations like our tax system just fine the way it is. It allows them to deduct most of their income or keep it offshore so it doesn't count as income in the U.S. at all.
       In order to fix our problem, these mega-corporations would wind up paying a lot more in taxes. Now who would be against that? Well, of course, the Democrats and Republicans in office, that's who would be against that. But it's more politically correct for everyone to be in favor of fixing our tax system. Heck, even corporations will tell you that. If you want to hear that sort of thing.
       The real question is do we want things to change? Tax accountants and lawyers don't want change, corporations don't want change. Even the IRS probably doesn't want change because 75% of them would be layed off. Even talk show hosts would be unhappy with change. And sorry but what the middle class and the poor want doesn't count.

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