Posted on 09/04/2011 12:31:53 AM PDT by Bigtigermike
Sarah Palin proposed eliminating all corporate taxes in her speech to the Iowa Tea Party today. This is HUGE. The ripple effect of putting this in place would affect a vast swath of corporate America, in addition to eliminating crony-capitalism.
Consider for a moment all those that would be affected by such a policy. Corporate tax attorneys, CPA firms and countless tax department employees would lurch to a halt in their jobs. The focus of countless corporate controllers would shift from tax avoidance to net income maximization.
Countless corporate lobbyists would be out of a job overnight. Their corporate benefactors would pull the plug on their funding immediately. The focus of corporations would turn away from Washington, DC in a heartbeat.
Companies that have relied on government largess to support their bottom lines would be horrified. Weaknesses in governance would be exposed overnight as the SEC would mandate that companies disclose any risk in their business plans beyond company guarantors. GM and Chrysler would suffer a major downgrade in their stock valuation because the federal government would no longer underwrite and support their operations.
In a word, the free-market would explode! Risk-taking would suddenly be in vogue again and entrepreneurs would be empowered to invest. There would be a massive shift of cash out of savings into new endeavors. Corporations would scramble to find fitting investments for their stockpiles of cash. The value of small companies would skyrocket as these investment dollars would be looking for a good return and compete for the best ideas.
The downside? Washington politicians would immediately demonize the idea as a major impediment to deficit reduction, as if they’ve ever cared about that in the past. The caterwauling about reduced revenues for Washington would be deafening! If such a policy was implemented, we would watch Washington pundits undergo convulsions as they began to realize how their lives would be impacted. There would be no incentive for ANYONE involved in business to pay attention to them.
!
With the right Senate, House and president, wondrous things are possible. America can still be salvaged, and that is what the next election is about, not maintaining the status quo.
So, not only did Obama apparently steer a half-billion loan to Solyndra,, when Solyndra (which, according to Time, was already "a mess" when it got the loan), got in further trouble, the WH quietly restructured the loan this winter, with the end result being that Solyndra's major investor, a Dem bag man and major bundler for Obama's 2008 campaign, will get repaid BEFORE taxpayers in the now-declared bankruptcy.
As even Time asked: should government even be making these bets on winners and losers? (NO.)
And should government be down in the weeds trying to figure out how to run a corporation such as this one b/c it made a major investment of taxpayer money in it? (NO.)
When Carney was asked whether it was a good business practice to give Solyndra a half-billion dollar loan in the first place, he replied that the government "is not a business."
THAT SAYS IT ALL.
Corporate tax law, as well as all these outright and backdoor stimuulus gambits (such as the recent one to use Fannie Mae to give another backdoor bailout to Bank of America), is merely social/political policy that operates outside the reach of normal political accountability.
Also, once streamlined for corporations, it will make it a lot easier to go all the way and streamline the tax cade for everybody.
I forgot to state clearly that corporate tax law is also susceptible to major corruption.
Sarah Palin is a “natural” strategic genius. As Sun Tzu said, the greatest general is the one who defeats the enemy leader in his mind and is so undeniably superior in intellect, no blood has to be shed for victory to be gained.
And that is exactly what she meant when she says it’s not enough to just change the team uniform, you have to change the team. Rush talked a lot about the entrenched staffers in D.C. before, they’ve been somewhat constant through several adminstrations...and need to be cleared out.
No Perry’s proposal is for funds held overseas right now. A tax holiday. Not even close to what Palin proposed.
In the "The Undefeated" her staff in Alaska was interviewed about the release of the "ACES" Bill and they said she and the team went over every item in the bill and defended it, ad nauseum, to each other, so when the press started after them, they knew there was "nothing but right" to defend and they had all the answers.
She sure knows how to write a game plan.
Sarah Palin is a “natural” strategic genius.
That's a good way of putting it. There are people exactly opposite mentally from Barack Obama, people who think through things objectively and intuitively, rather than, like Obama and supporters think vocal blabbering, is thinking.
It is our exposure of the phony Noam Chomsky.
Unfortunately a majority of constituency probably do not understand.
One reason the Tea Party must be pointed and explicit in the articulation of conservatism: responsibility, self-honesty, moral discipline.
Johnny Suntrade
In 2010 Verizon paid zero in U.S. income taxes. That same year it laid off something like fifteen thousand workers. GE paid nothing in taxes. GE laid off thousands of workers. Black & Decker paid nothing in taxes. Black and Decker laid off a couple of thousand people. Prudential Financial paid no taxes. Prudential Financial laid people off. Boeing paid nothing in taxes. Boeing laid off workers. So how much lower to taxes need to be before these companies start creating jobs in the U.S. instead of overseas?
How about we just go ahead and do what we need to do and be done with it? The FairTax would do all that she is proposing plus a lot more and the economic boom that would result would FAR exceed anything anyone alive today has ever seen!
Can you say F R E E D O M ! !
Thousands of middle-of-the-road to major corporations around the world would be scrambling to open up shop in the U.S. The true energy of the American Entrepreneurial Spirit would be unleashed in an economic eruption that would create millions of jobs (and Trillion$ in revenue to the Government, balancing our debt) within her first term as President, creating massive surpluses in her second).
This is what is possible when a real "leader" actually "leads." Palin will re-write what a historically leviathan political juggernaut looks like... again.
;^\
>>...Not quite. Graft can be had through regulatory chicanery, credits, eminent domain, etc...<<
Well then, it’s certainly a start - isn’t it?
Seems to me it’s a *huge* shot across the bow that should rock the beltway boat, however slight. Is the US Congress likely to legislate away corporate taxes just because someone (president, candidate, pundit, poll) says so? I highly doubt any tax-code change that massive could be done within the span of the next Presidential term.
But to get this country back on track, I personally think a bold leader needs to step forward and start challenging the abominations that have become status-quo over the past 50+ years. Throwing down such a jarring challenge to the current behemoth tax-code to get the conversation/debate started is not a bad idea in my opinion.
In the ensuing debate, there may be valid points made pro/con concerning the idea of flat-out abolishing corp taxes, but anyone who thinks it’s a *bad* idea then would be expected to either defend the current tax-code -or- suggest a viable alternative to have a credible argument.
It’s starting to get interesting. Whether she actually runs or not, I do admire Palin for how she can get folks talking. I wish there were at least two other candidates that generated as much water-cooler and friends & family conversations colored with a “brighter days ahead” vibe as Palin does. Most other candidates (at least so far) just tend to get the “better than Obama” vibe.
I’ll admit it’s unusual, considering she’s not even a candidate...
Yowza!
Odd, isn't it? Especially since most people work for one.
Why in the hell would anyone want the taxes on their employers to he higher? Class warfare makes no sense (unless you are trying to gin up votes of the welfare people.)
Your statement is the type I would expect from a socialist, an envious person. I suggest you read about the incredible amount of human labor it takes to keep compliant with ALL the taxes and regulations that the Imperial Federal government imposes on humans.
Taxes are priced into everything a corporation provides.
Do you honestly believe that it would be better if all the corporations you listed paid taxes???
Do you think the government would "spend" that money wisely?
You either did not read this article with an open mind, or you just have the leftists mentality when it comes to "corporations."
It is astounding how many Freepers have little understanding of what true Capitalism is, and the wealth it provides to a society. Instead, some Freepers ALWAYS look at corporations as something "ripping" off the consumers.
As far as the layoffs you mention, I suggest you read Joseph Schumpeter for his explanation of "creative destruction."
You know this kind of thing really bothers me. Here everyone is discussing a tax policy from Palin’s speech, but really the important conversation is the policy itself, not who thought of it. I bet plenty of ordinary people think it’s a good idea too, given the scope of comments here. This is an area that I don’t understand so I’m reading through with interest. Then here you come injecting primary politics into it. Can’t we have a policy discussion about anything, regardless of who proposed it without someone doing the “but my guy is better than your guy, neener, neener, neener”!
Cindie
The big corporations you named have buildings stuffed with accountants, whose sole job it is to game the tax system, so that those companies actually get to keep the money they honestly earn.
You're putting forth a tired (and might I say liberal) class warfare argument that won't do a thing to 'lift all boats'. How bad must economic conditions be, if even major corporations who have the ability to fend off being robbed by the federal government, are letting workers go?
Obviously, you don't see that it's the federal government that is responsible for distorting and undermining our economy. Bad aim.
And your's is the knee-jerk response of someone who doesn't bother to think things through. I suggest you read about the incredible amount of human labor it takes to keep compliant with ALL the taxes and regulations that the Imperial Federal government imposes on humans.
Obviously all that human labor is paying off since they don't pay any taxes to begin with. So why can that be a complaint?
If all these companies don't pay taxes and they aren't creating jobs here then it isn't the tax structure that is the reason. So what is it? Government regulations? If so then that should be the primary target for action and not a blanket end to corporate income tax. Is it the fact that labor overseas is a fraction of the cost of labor here? Then there is nothing we can do to offset that so why drop their taxes entirely? Why not end all taxes on profits made from work done by U.S. workers and tax the crap out of profits resulting from overseas workers?
It is astounding how many Freepers have little understanding of what true Capitalism is, and the wealth it provides to a society. Instead, some Freepers ALWAYS look at corporations as something "ripping" off the consumers.
If people disagreeing with you astonishes you then you must be in a perpetually astounded state.
But isn't the reasoning that if we only cut the taxes on the job creators then they would begin hiring and unemployment would fall and joy would spread across the land? Well here are cases where companies pay nothing and they aren't creating jobs, at least not here. So if taxes aren't the reason why they aren't adding jobs here then wouldn't it make more sense to identify the real reasons and address them?
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