I'm just not sure what to make of all this. I hear different politicians at the federal and state level talking about the heavy tax burden that we carry in this country, and while I certainly don't want to volunteer for more taxation, I know that the big corporates and the wealthy folks who derive their income from investment really don't have it all that bad. Some folks (Michele Bachmann, Sarah Palin, Rick Perry, The Wall Street Journal, et. al.) get pretty worked up over returning the tax rate back to the level of the Clinton era. They yammer constantly about companies moving out of state and out of country if the tax rate is raised, or even if the special tax loop holes are closed. Businesses are already overtaxed at the 35% level and to go back to the 39% of the Clinton years would surely create an economic catastrophe.
Well, it didn't in 1993 when rates were increased to 39%. In fact by the end of Clinton's term in office, we had amassed something on the order of 200 billion dollars and were on the path to wiping out the national debt within the next 10 or 15 years. People were working, business was booming. In fact, if I remember rightly, there were kids getting out of college and receiving signing bonuses if they went to work for a given company.
There's a saying that alcoholics can't stand too much of a good thing and that they will purposely sabotage their sobriety. Looking back, it almost seems like the Bush tax cut sabotaged our prosperity – and certainly getting us embroiled in two wars and borrowing the funds to do the fighting. It reminds me of a fellow I knew who borrowed $300 to buy a car to run in the demolition derby on Sunday evening. He won the prize – a $100 – and his car was completely demolished. In one sense he was a winner, but it was a pretty costly win.
And now the Citizens for Tax Justice have found “recent data from the Organization for Economic Cooperation and Development (OECD), the Office of Management and Budget and the Census Bureau reveal that the U.S. is already one of the least taxed countries in the developed world. Only two OECD countries have lower taxes as a share of gross domestic product(GDP) than the United States.” Cite -http://www.scribd.com/doc/59076701/U-S-Is-One-of-the-Least-Taxed-Developed-Countries It's an interesting article if one pushes through to the end and accepts the citations offered. Remember the 35% rate is the nominal rate before business takes off for a new roof and machinery, and hides any real profit over seas. So with all the loopholes in the tax was, the real rate was somewhere in the neighbor- hood of 22.6% in 2009. And it hasn't changed that much since then.
I could go on, but the article tells the story much better and succinctly than I could do. Read it if you dare. Challenge it if you can. As for myself, I am not much of a tax expert. Then again, George W. and his team couldn't have been much good at the taxing game either. So I'll point you in the right direction and you can make up your own mind.