Posted by: al66888 | May 30, 2007

Here come the tax hikes

Hillary Clinton is at it again, Vowing to take more money out of your pocket. What I want to know is, how do people continue to vote for someone that they know is going to take their hard earned money? She has proposed to remove the Bush tax cuts which will result in the largest tax increase in the nation’s history, averaging an additional $2500/yr per person. And of course, she is going to tax the corporations. Let me just explain this to everyone out there in case they are confused- CORPORATIONS DON’T PAY THEIR TAXES, YOU DO!

Let me explain with 1st grade math:

If Company A sells a product for $1.00 and has to pay $0.30 for every unit they sell, they have an after tax profit of $0.70. Now the government comes in and says, you can’t make $0.70 per sale, that’s too much. You now have to pay $0.40 per sale to us. Do you really think that Company A is going to take a $0.10 hit per sale? No way! They now sell their product for $1.10 and pay the government $0.40 keeping their after tax profit at $0.70. So who really paid that tax that these politicians are forcing on big bad company A? That’s right, the consumer that just forked out an extra $0.10 for the product he just bought.

Now sure, it’s a little more complicated than that, (of course it is, have you seen our tax code lately?) but you get the point. In another stroke of genius, she has decided that taking away a company’s ability to defer taxes on profits made overseas will help keep jobs in the country. How backwards can you get? If I stay in America, I’m paying more taxes because I can’t defer my overseas profits. What’s to stop me from moving operations to somewhere like Holland that has extremely low corporate taxes? The short answer: Nothing.

A spokesman for Mitt Romney’s camp stated, “Senator Clinton’s plan guarantees higher taxes, which will slow down our economy, halt job growth dead in its tracks, and make American businesses both large and small less competitive in the global economy.” I think that’s a pretty fair statement.

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