Taxation

How Data On Income Distribution Are Misunderstood And Misapplied

Investor’s Business Daily | by Thomas Sowell | Jan. 8, 2010

Most intellectuals outside the field of economics show remarkably little interest in learning even the basic fundamentals of economics. Yet they do not hesitate to make sweeping pronouncements about the economy in general, businesses in particular, and the many issues revolving around what is called “income distribution.”

Famed novelist John Steinbeck, for example, commented on the many American fortunes which have been donated to philanthropic causes by saying:

One has only to remember some of the wolfish financiers who spent two thirds of their lives clawing a fortune out of the guts of society and the latter third pushing it back.

[Read more…]

Don’t Tax You. Don’t Tax Me. Tax That Guy Behind the Tree!

American Thinker | by Thomas Sowell | Jan. 8, 2010

Politicians like Barack Obama try to make you believe that someone else will pay the tax he wants to impose. For example, President Obama said he will increase taxes only for those making more than $250,000 per year. Other politicians, at other times, have told us that we will tax corporations rather than individuals, or tax some other out-of-favor group or product (sin tax) rather than the majority of individuals or the general sales tax.

The problem is that in reality, the guy behind the tree is the vast majority of us…yes, the same people who were promised that they would not pay the proposed tax increase. This is quite easy to see in some examples. [Read more…]

The French Model

The Washington Times | by Richard W. Rahn | Aug. 26, 2009

Why does it appear France is bouncing back more quickly from the recession than the United States? France has long been known for having an economy that suffered from too much government interference, too-high taxes and destructive union activity. Yet it grew 1.4 percent in the second quarter of 2009, while the U.S. economy continued to decline.

The United States and Britain have had the largest “stimulus” programs of the major economies (as measured by increases in government spending and deficits relative to gross domestic product) and yet they are not moving toward recovery as rapidly as most other countries that had far smaller stimulus programs or none. [Read more…]

The Assault on American Business

The message from Washington is clear and getting louder by the day. If you run a successful business you face excessive government regulations and higher levels of taxation for years to come. The more productive and profitable you become, the more you will be forced to pay for the privilege of operating in this country. This threat is real and it appears that many companies and business owners are taking steps to protect themselves.

President Obama’s anti-business and anti-competitive campaign messages made executives and business owners apprehensive ahead of the January 2009 presidential inauguration and the Democrats obtaining control of Congress. Coming in the midst of one of the worst financial crisis and economic recessions in recent memory these promises had predictable results: businesses aggressively cut expenses, decreased their capital expenditures, drastically reduced their payrolls, and hunkered down to weather the current crisis and deal with the long-term consequences of punitive government actions. [Read more…]

A Lesson in Stupid Tax Policy

American Thinker | by Daniel Salvaterra | July 12, 2009

North Carolina is a state with a huge budget deficit. It is one of the worst state deficits in the nation at $4.6 billion or 21% of the general fund budget for fiscal year 2010. In addition, North Carolina has the 5th worst unemployment rate in the country at 11.1%, and just missed the top 10 lists of the worst states in the country for business.

So how has the Tar Heel State proposed it solve its budget crisis and spur economic growth? Not by cutting spending of course! Governor Beverly Perdue has proposed $1.5 billion in tax increases, much of which will come from taxing online retail sales from companies that have no physical presence in the state. [Read more…]

US Companies Pay the Highest Taxes in the World

US High Taxes Corporations Businesses It may come as a surprise that US companies pay the highest taxes in the world. Yes, you read that right! American businesses, large and small and across all industries pay from 35% to 41.6% of their income in combined state and federal taxes. The 41.6% maximum rate is scheduled to rise to 46.2% in 2010 when President Obama’s promised tax increases are implemented. Compare that to socialist France where companies pay only 34.4% in taxes, to China where the rate is 25%, or Russia which levies a mere 24%. Corporations in Ireland, Europe’s fastest growing economy for the last 18 years, pay just 12.5% in taxes.

Because of its dual taxation system, US businesses and individuals are required to pay both state and federal taxes on their income. When combined both these taxes range from a minimum of 35% in states like Nevada, South Dakota, and Wyoming that do not tax business income, to a maximum of 41.6% in Iowa, the state with the highest corporate tax rate of 12%. [Read more…]

The 2 Percent Illusion

Wall Street Journal | Feb. 26, 2009

Take everything they earn, and it still won’t be enough.

President Obama has laid out the most ambitious and expensive domestic agenda since LBJ, and now all he has to do is figure out how to pay for it. On Tuesday, he left the impression that we need merely end “tax breaks for the wealthiest 2% of Americans,” and he promised that households earning less than $250,000 won’t see their taxes increased by “one single dime.”

This is going to be some trick. Even the most basic inspection of the IRS income tax statistics shows that raising taxes on the salaries, dividends and capital gains of those making more than $250,000 can’t possibly raise enough revenue to fund Mr. Obama’s new spending ambitions. [Read more…]