“I give up.” That was how Jon Stewart put it after delving into the taxation realities of America’s big businesses. And I’m going to shock some of my more regular readers and say I completely agree with him. Okay, so no surprise there, but I’m not here to lambaste the Republicans and praise the Democrats. Today I would like to say, succinctly, you all suck.
In this great budget-fixing world we live in right now, Madison has been ground zero for the Republican solution to the problem. Blame the greedy, lazy, selfish and all-around terrible public unions for, well, everything. Also, make sure to constantly lower corporate taxes or else all the businesses will leave the country, and you, progressive elitist, will most definitely be sorry.
The number being floated around indicated the United States had the highest corporate tax rate in the world at 35 percent and that it was crucial this be lowered to prevent the aforementioned business flight. This even sounded reasonable until the realities of corporate tax maneuvering came to light. For example, GE had profits of $14.2 billion last year, and of that amount they paid no federal taxes. Not being a math major, I can’t be certain, but it does appear they managed to skirt our tax laws, and also that any argument for lowering the tax rate is moot, considering it is pretty hard to tax less than zero. But that is where I would be wrong, because along with paying no federal taxes, GE received a $3.2 billion tax benefit. All of this adds up to a stringent tax rate of -60 percent.
Apparently this is the norm in America, with two-thirds of American-controlled companies paying no corporate income tax. With President Barack Obama promising to go after these companies, at least we were going to address the problem. Of course, having the CEO of GE then chair your counsel on jobs and competitiveness when they have cut one-fifth of their workforce in America while stacking their tax department with former IRS agents might not exactly send the right message.
In a country where 400 individuals have as much wealth as 50 percent of the nation, politics remains business as usual. One side will be a bit more blatant with its attacks on the working class and defense of corporate interests. The other side, well, unfortunately I see a lot of lip service toward corporate and wealthy tax reform but still find plenty of cronyism and concessions.
And why not? The U.S Census Bureau’s latest report shows 92 percent of individuals who made more than $100,000 voted in 2008, while only 52 percent of people who made below $20,000 and 56 percent of people who made between $20,000 and $29,999 voted. Couple that with the Citizens United ruling and the reality of a system predicated on pleasing the wealthy is pretty unavoidable.
I don’t have anything against being wealthy, I don’t support “income equality” and I certainly can see the wisdom behind enticing businesses to invest in America by removing some barriers. But I do have a problem with a country facing a $14 trillion deficit that finds it easier to exact concessions from teachers than from billion dollar companies. I do support acknowledging a severe income inequality that is a fundamental component of our budget issues. I have a problem with how easily the conversation slid from “How dare you try to increase taxes on the top 1 percent, you socialist” to “It’s about damn time the unions did their part and stopped being so selfish.”
I’m sick and tired of reading stories every day about teachers who clearly have a passion for inspiring and guiding the next generation but are contemplating retirement and other career choices in the face of increased scrutiny, dwindling pay and expanding classrooms. I’m sick and tired of never hearing about the dangers of the income disparity in this country. Let me say it again – 400 people have more wealth than half of America combined. That’s a ridiculous statistic, but it appears to be in the best interest of our leaders to ignore it completely. It seems absurd to try to fix a system like this with increased concessions from the bottom as the top continues to consolidate its position, while distancing itself from the economic middle. But if that’s how it’s going to be, fine, I give up.
John Waters ([email protected]) is a junior majoring in journalism.
