Posted on 09/05/2011 9:03:01 PM PDT by MN_Mike
It's been a long while since I posted at FR, so bear with me please. There has not been sufficient discussion about Governor Palin's superb tax policy she announced in Iowa this past weekend. So, before the other campaigns try to co-opt it, I think it's necessary to put our pro-Palin stake in the ground.
Current Situation -
As we are all well aware, the high unemployment is plainly nasty and long-standing. Much as President Obama would like any of several of his targets to take the blame for the economic fix we are in, it is his name that will be on the 2012 presidential ballot.
We have major problems with our current tax system, and Governor Palin provided a practical solution for the corporate tax mess. Let's start out by restating the fact that at 34% our corporate tax rate is the highest in the developed world. And, as the Governor pointed out, unseemly politicians manipulate the tax system to provide loopholes for their corporate friends at the disadvantage of all other competitors and the absence of a free market system.
The corporate tax system at 34% results in some seriously adverse outcomes. Today, corporations with foreign subsidiaries are unwilling to consolidate their profits and investment dollars back into the US parent because it will incur a 34% tax just as if it was earned in the US to begin with. As a result, you too frequently read headlines that read that a US based corporation is laying off workers in the US while hiring at their foreign subsidiaries.
The Palin Tax Plan -
The Palin Plan eliminates corporate taxes and (obviously) tax loopholes. Let's talk first about the absence of loopholes.
Tax loopholes have been the way for politicians to pick winners and losers, where donor corporations just so happen to receive loopholes. Meanwhile, corporations who donate to the opposition or make no donations receive no loopholes and are therefore at a competitive disadvantage. It's corporate welfare, corporate cronyism, and "pay for play' all at once.
The removal of loopholes eliminates the prospect of "pay for play" because it is the free market, not the crony politician who sets the rules, who determines winners from losers.
As for the elimination of corporate taxes, this would level the playing field and bring the money earned at foreign subsidiaries back to the US parent. Why is this important? Because investments are made where the money resides. In essence, this become a stimulus plan not by and for the government but for the private sector, the job creators.
As such, businesses will invest in their expansion in the US instead of at foreign subsidiaries. With expansion comes the creation of many new jobs. The economy is unleashed and new jobs means new tax payers.
Palin, Uniquely Qualified -
When it comes to taking down crony capitalism, government welfare and the like, there is no one who matches Governor Palin's resume. This is right in her wheelhouse.
Governor Palin, The Right Person at the Right Time -
After the unseemly, dreadfully slow moving term of President Obama, there is no candidate more capable and qualified to drive the Chicago thugs out of our White House. Let's make sure she gets the nomination and moves into the White House in early 2013.
And don't forget Piper Palin for President in 2032. It's never too early.
As most if not all taxation is passed on to the consumer anyway, this would eventually put a lot of money back in everyone’s pockets.
And if one company wanted to pocket the savings, their competitors would take advantage by lowering prices. Ain’t free markets grand?
There will be more revenues and jobs than any other tax program on the board. Basically a copy of Reagan’s plan for individual taxes.
Pray for America and Palin
That’s pure propoganda. As a United States voter you have a duty to know what propoganda is. You just can’t make things up with no facts to back them up. That is the definition of propoganda and it’s exactly what you just said by your statement.
Your criticism lands better on the Obama voters; there’s a LOT of them.
I really appreciate you highlighting this. I’ve been thinking that it didn’t get much press, but that some ‘economists’ will come out in lauding it after having a few days to chew on it and vet it. There has been so much hoopla with the Hoffa/Demint forum/Bachmann fiasco/holiday weekend distractions the talking heads haven’t really given the substance of her speeches much press. There was a lot of meat in each of her speeches. If they are honest they won’t ignore it.
Mike, I shared your piece at C4P. Sure hope you don’t mind, but I thought it was important.
SARAH gets it because she is one of us!
Gov. SARAH Palin - “We The People” Candidate!
How is she supposed to make this happen with a Congress full of RINOS and Democrats?
With our help and support.
One third of the Senate and all of the House is up for re-election in 2012. REPLACE THEM!!!!
Sarah Palin's coattails will bring an overwhelming defeat for the Establishment Elites. Any of those escaping the election axe will serve in fear for their jobs.
“One third of the Senate and all of the House is up for re-election in 2012. REPLACE THEM!!!!”
It seems that that’s strategically even more critical than who’s elected president.
As long as it’s not Zero, of course.
Nobody’s talking about the math of this. It’s interesting. Projected 2011 corporate income tax receipts are $247 billion versus $1.463 trillion total income tax (corporate and individual). That’s roughly 17%. (Source: http://tinyurl.com/3sopxbo.)
Another way to look at this is the relationship to total federal spending. That’s projected to be $3.8 trillion in 2011 (Source: Ibid). Projected 2011 corporate income taxes are 6.5% of that number.
If we had the political will, could we cut $247 billion from our annual US federal spending?
You all know the answer is yes.
What would it buy us?
Capital flooding in from all corners of the globe to do business in the new US tax haven. American corporations would repatriate trillions of dollars stuck in as yet un-US taxed foreign jurisdictions.
Job creation would flourish.
Moreover, individual tax receipts would rebound; I expect soon replacing the lost $247 billion.
So, yes. It’s a brilliant idea. We should do it.
Very good analysis here. Might have to use your ammo for future web battles. Thank you, freepdawg.
Thank you. Please you would find it worthy of sharing.
Palin’s plan is not new, is not complete and is not enduring, and importantly does not put the country back on the track of its original founding upon freedoms and liberties of its citizenry.
History shows that elimination of taxes of any sort under the 16th Amendment is temporary in that such eliminated taxes are resuscitated within a few Congresses. It doesn’t take long for tax creep to resurface and increment its way back into the tax code.
An inspired and enduring tax reform that has tons more research than Palin’s can be found here:
http://www.fairtax.org/site/PageServer?pagename=about_faq
I thought Sarah also mentioned regulations that break companies or send them fleeing. I could be wrong but I didn’t think it was just corporate taxes. Taxes were the high point though. And I certainly agree!
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