Well, my friend RedStateVT has pointed out an inconsistency that I must comment on. It turns out both Oil Companies and Mining Companies benefit from tax shelters at the expense of Individual Rate Payers. I was going to castigate Republicans for their lack of support for ending such tax shelters but then it turns out certain Democrats don't want to end the mining breaks.
Wait a minute, isn't curing the deficit a common goal of both parties. Wouldn't it make sense to package Republican and Democratic industries to raise revenue while ending unfair corporate welfare. Of course it would, but then incumbents might be at risk of losing elections. Well, lead and educate the voters.
The fact is that corporate effective tax rates have fallen from 35% to something well less then 20%, while Individuals are somewhere around 31% overall with the 35% top rate. It is time for corporations pay their fair share, especially if the earnings are on shore. That does not have to mean 35% but a well designed tax overhaul (such as that recommended by The Deficit Reduction Commission) could raise revenue while cutting tax rates for all. That would be a good thing. Tackle 30% of the deficit with revenue increases and the other 70% by reducing spending. Yet no politician has really taken up promoting the Deficit Reduction Commission, including its sponsor the President. He should lead and educate the voters, also.
And while we are at it, it makes no sense for Hedge Fund employees to get annual income treated as a capital gain just because it is a "carried interest". If it comes as a salary, it should be treated as ordinary income. If it at risk in an investment and held for more then a year, well then it deserves capital gains treatment.
No comments:
Post a Comment