To: President Donald Trump, The United States House of Representatives, and The United States Senate
Republicans: The Middle-Class are the 'Job Creators'
Many people in the United States (roughly 15 million) are desperate for meaningful work at a reasonable wage. Congress has worked on meaningless issues so far in 2011 and entirely neglected the most important issue to Americans; The creation of jobs. The goal of creating jobs MUST be the top priority for Congress. This should remain the top goal until the U.S is again financially strong and prosperous. Jobs create consumers. Consumers purchase additional items, thereby creating additional demand that requires additional workers to create additional supply to satisfy this additional demand. Consumers are the most important element in an economically prosperous and innovative society.
Business in general is absolutely helpless during depressed economic times. This has been conclusively demonstrated over and over throughout history. Corporations are motivated solely by profit. Business will always accept additional tax cuts, however, tax cuts do not generate additional consumer demand to allow the hiring of new employees. The Great Depression of the 1930's and our current Great Recession (which are very similar in economic terms) have proven beyond doubt the helplessness of business to cope with an economically depressed consumer base.
Republican leadership has nurtured the misconception that large corporations and very wealthy individuals are the 'job creators', therefore, they should pay little or no federal taxes to support our nation's economy (this also applies to taxes at the state and local level). This fallacy has become ingrained in the American psyche. Business sectors that add the most to job creation and the overall economic health of the nation should receive the greatest benefit of lowered taxes and tax incentives. This system should not and must not be based on the ability of paying millions of dollars to unfairly lobby Congress and obtain unneeded or undeserved 'special tax treatment'.
The American people must have the cooperation of Republican leadership in Congress in order to rebuild this country. The Republican leadership constantly talks about 'uncertainty in business'. This concept does not exist. Business simply expands or contracts during high or low consumer demand by reducing or adding work force, which in turn, tends to compound businesses difficulties and reduces bottom line profits. The issue that must be addressed is 'uncertainty of consumers'. Address this problem (through addition of well paying jobs) and the rest will fall into place. Government is the last line of defense. The business community cannot be counted on to lift the nation out of severe economic depression. Which came first, the chicken or the egg? Or. a better way to state this; Which came first, business or the consumer?
Let's look at corporations in general. GE paid no taxes; Goldman Sachs paid $14 million last year. The GAO reported in 2008 that “two out of every three United States corporations paid no federal income taxes from 1998 through 2005.” Companies have become all too astute at paying for loopholes which allow them to shift profits abroad, or move their gains (on paper) to foreign low-tax/no-tax nations.
Let's look at the overall tax payments corporations have made. As the figures below show, the change in corporate taxes — not merely rates, but what they actually paid — over the past half century is astounding. Large corporations reap tremendous benefit through lobbying the federal government, however, they tend to provide the least benefit to American society by way of revenue and job creation (large corporations currently generate 20% to 25% of all new jobs). Republican leadership has maintained for more than 30 years that giving more entitlements and tax breaks to large corporations will increase prosperity and create jobs. The results of this '30 year failed experiment' indicates the exact opposite.
Corporate profits have not been higher than current levels since 1955 (World War II post-war boom). Large corporate taxes have never been lower. Large corporate subsidies and incentives through loopholes and special tax considerations have never been higher. Corporations are now 'holding' over two trillion dollars in profits. That being said, the current rate of economic contribution to the nation's economic health and job creation in the U.S. by large corporations has not been lower since The Great Depression of the 1930's.
Corporate Taxes as a Percentage of Federal Revenue
1955......27.3%
2010 . . . 8.9%
Corporate Taxes as a Percentage of GDP
1955.......4.3%
2010 . . . 1.3%
Individual Income/Payrolls as a Percentage of Federal Revenue
1955.......58.0%
2010 . . . 81.5%
Anyone who is serious about closing the US deficit should consider the changes in what corporations pay in taxes and the rise of the deficit (which has directly caused the United State's ever increasing national debt).
President Obama has worked diligently and tirelessly to reduce the tax liability and meani...
Business in general is absolutely helpless during depressed economic times. This has been conclusively demonstrated over and over throughout history. Corporations are motivated solely by profit. Business will always accept additional tax cuts, however, tax cuts do not generate additional consumer demand to allow the hiring of new employees. The Great Depression of the 1930's and our current Great Recession (which are very similar in economic terms) have proven beyond doubt the helplessness of business to cope with an economically depressed consumer base.
Republican leadership has nurtured the misconception that large corporations and very wealthy individuals are the 'job creators', therefore, they should pay little or no federal taxes to support our nation's economy (this also applies to taxes at the state and local level). This fallacy has become ingrained in the American psyche. Business sectors that add the most to job creation and the overall economic health of the nation should receive the greatest benefit of lowered taxes and tax incentives. This system should not and must not be based on the ability of paying millions of dollars to unfairly lobby Congress and obtain unneeded or undeserved 'special tax treatment'.
The American people must have the cooperation of Republican leadership in Congress in order to rebuild this country. The Republican leadership constantly talks about 'uncertainty in business'. This concept does not exist. Business simply expands or contracts during high or low consumer demand by reducing or adding work force, which in turn, tends to compound businesses difficulties and reduces bottom line profits. The issue that must be addressed is 'uncertainty of consumers'. Address this problem (through addition of well paying jobs) and the rest will fall into place. Government is the last line of defense. The business community cannot be counted on to lift the nation out of severe economic depression. Which came first, the chicken or the egg? Or. a better way to state this; Which came first, business or the consumer?
Let's look at corporations in general. GE paid no taxes; Goldman Sachs paid $14 million last year. The GAO reported in 2008 that “two out of every three United States corporations paid no federal income taxes from 1998 through 2005.” Companies have become all too astute at paying for loopholes which allow them to shift profits abroad, or move their gains (on paper) to foreign low-tax/no-tax nations.
Let's look at the overall tax payments corporations have made. As the figures below show, the change in corporate taxes — not merely rates, but what they actually paid — over the past half century is astounding. Large corporations reap tremendous benefit through lobbying the federal government, however, they tend to provide the least benefit to American society by way of revenue and job creation (large corporations currently generate 20% to 25% of all new jobs). Republican leadership has maintained for more than 30 years that giving more entitlements and tax breaks to large corporations will increase prosperity and create jobs. The results of this '30 year failed experiment' indicates the exact opposite.
Corporate profits have not been higher than current levels since 1955 (World War II post-war boom). Large corporate taxes have never been lower. Large corporate subsidies and incentives through loopholes and special tax considerations have never been higher. Corporations are now 'holding' over two trillion dollars in profits. That being said, the current rate of economic contribution to the nation's economic health and job creation in the U.S. by large corporations has not been lower since The Great Depression of the 1930's.
Corporate Taxes as a Percentage of Federal Revenue
1955......27.3%
2010 . . . 8.9%
Corporate Taxes as a Percentage of GDP
1955.......4.3%
2010 . . . 1.3%
Individual Income/Payrolls as a Percentage of Federal Revenue
1955.......58.0%
2010 . . . 81.5%
Anyone who is serious about closing the US deficit should consider the changes in what corporations pay in taxes and the rise of the deficit (which has directly caused the United State's ever increasing national debt).
President Obama has worked diligently and tirelessly to reduce the tax liability and meani...
Why is this important?
The goal of creating jobs MUST be the top priority for Congress. This should remain the top goal until the U.S is again financially strong and prosperous.