Big business loves big government
|
|
December 21, 2012 |
By U.S. Congressman Raul Labrador
Last week, the Business Roundtable, an
association of some of America’s largest
multinational corporations, sent a letter to
Congress suggesting that tax hikes on individual
taxpayers and small businesses should be
considered to avert the ‘fiscal cliff.’
Nationally, the ‘fiscal cliff’ talks are seen as
a debate between the two parties. But the
Business Roundtable letter reveals another
battle that is not as apparent to the American
people, one between big business and small
businesses across the country.
I was more than a little surprised to hear these
businesses asking for higher taxes on individual
taxpayers and small businesses since I have seen
many of these same CEOs parading through
Congress over the last two years asking for a
significant reduction in the corporate tax rate
so they can become more competitive. I actually
agree with them that the corporate rate is too
high in the United States and it must be reduced
so we can be globally competitive again.
So why would these CEOs be asking for tax rate
deductions for their companies while begging us
to raise tax rates on individuals? How do we
explain this apparent contradiction?
It’s simple.
Washington's dirty little secret is that big
business loves big government. Big business
loves to use its power and influence to exact as
many concessions from big government as
possible. Because big business can afford
accountants, lobbyists and regulators, big
business ultimately ends up with a tax code and
regulatory environment that benefits them at the
expense of their smaller competitors.
In essence, they use big government to decrease
or eliminate competition. The more government
grows, the more big business benefits because
only they can afford the overreach of
government.
Let me share with you what some of President
Barack Obama’s biggest supporters have done over
the last few weeks. Business entities like
Costco and the Washington Post Co. have
announced that they will pay their shareholders
next year’s dividends before the end of this
year. Think about that. In order to protect
their shareholders from the huge tax rate
increases they advocated for by supporting Obama
and his policies, they are paying their
dividends this calendar year before the new tax
rates take effect. Costco even borrowed
money—millions of dollars—in order to prepay
these dividends.
Don't get me wrong; I know that they are acting
on sound financial advice, but it is more than a
little hypocritical.
Raising taxes is not a solution to our current
fiscal crisis, particularly at a time of such
high unemployment. Higher taxes would further
damage the economy and hurt individuals,
families and the small businesses that employ
approximately half of the American workforce.
According to the Joint Committee on Taxation, 95
percent of all non-farm small businesses in 2009
filed taxes on the owner’s tax Form 1040, paying
income taxes at the individual rate.
Tax increases will take needed resources away
from investment and jobs. Uncertainty in the tax
code creates significant planning hurdles for
businesses, impacting hard-working families for
the worse.
What’s more, raising taxes on anyone still fails
to address the real issue of runaway government
spending. In DC both parties love to spend. Some
borrow money today and promise future spending
cuts and others increase taxes today and promise
spending cuts later. The problem is that the
spending cuts never happen.
The ‘fiscal cliff’ won’t be solved by raising
tax rates. The problem is bigger than that. Our
current tax structure is complex, over-bearing
and often unfair. When some large corporations
pay little or no taxes, the American people
become frustrated with the system. This is why I
support tax reform that incentivizes success and
treats all Americans fairly and equitably.
I have been hearing from many of you about what
needs to be done to get our fiscal house in
order. I remain committed to finding a balanced
solution to the ‘fiscal cliff’ but any solution
must involve savings from serious entitlement
reform and higher revenues through pro-growth,
comprehensive tax reform.
As a conservative, I believe in small government
and in the individual. I did not become a
conservative to defend the rich. I became a
conservative because I believe that my party has
a message that resonates with the American
people.
The American economy can grow and thrive if we
simply level the playing field and allow
businesses to succeed through innovation,
competition and customer service instead of
through special access to lawmakers and a
loophole-filled tax code.
|
|
Questions or comments about this
article?
Click here to e-mail! |
|
|
|
|
