On the subject of corporate tax rates I’m sure you have heard conservatives observe that “corporations don’t pay taxes – people do.” This is only part of the truth. Barry O. and his buddy, Joe, were insistent that corporations “pay their fair share.” What their fair share is and who determines it I will leave to your imagination. What you never hear is that politicians (i.e. Demoncrats) really use the corporate tax rate to increase the total tax they collect from you. And on top of that they will then beat corporations about the head and shoulders when corporations have to increase their price to cover the increase in the taxes they collect from you to turn over to the gummamint.
And there is an even more evil aspect to corporate taxes. Imagine, if you will, that a giant international consulting firm, Big Builders, Inc. has just won a massive contract to build a very large project for the Saudis. After their initial evaluation and planning Big Builder, Inc decides they will need 100 bulldozers with a certain set of specifications. Bill Bundle is part of the acquisition team and these bulldozers are his responsibility. He gets out his heavy equipment catalogs and begins his analysis. He finds two that meet the required specs. One is the Patter-Putter Rock Crusher 3000 and the other is the Mitbehistushy Lavender Chrysanthemum Mark II. The 3000 has been produced for 9 years and the Mark II has been produced for 3 years. Bill wonders to himself if the 3000 was being targeted by the Mark II. Their specs are virtually identical and so is their price of $200,000.
Then Bill remembers that the Patter-Putter catalog was printed in the last year of the Trump administration. He calls an old acquaintance at Patter-Putter, Chester Honeyhugger, to determine the current price. Bill knows that the current Japanese corporate rate is 10% so each bulldozer will cost $220,000. Chester sheepishly confesses that Patter-Putter has cut it’s profit margin to 1% just to maintain a presence in the market. That brings the base price down to $191,900. But it turns out that Joe Biden has determined that Patter-Putter’s fair share is now 28% so the export price will now be $245,632.
As you might expect, Bill’s company is not in business to push a social agenda of “fairness.” Their goal is to make money by turning out the contracted product at the lowest expense. Bill offers Chester his sympathy, because he will have to give the contract to Mitbehistushy and save over $25,000 per bulldozer.
There are other factors to consider, too. Because their export share went up during the Trump administration, Patter-Putter may now need to down size and layoff some people. As may their suppliers. Companies like Electo-zap which produces the wiring harness for the 3000. And Marty Moss Fasteners which produces a myriad of nuts, bolts and washers for the 3000. And, of course, there’s Rods and Seams welding supplies. The loss of the sale will even affect Pip’s Lunch Wagon which had to hire an extra person before the change in administrations. And many other effects will ripple through the U.S. economy to every company that seeks to export their goods and services and their suppliers.
So as the liberals call for a fair share from giant corporations, ask 19 year old Solidad who just got a pink slip from her first ever job as a Cook Trainee how fair it feels to her.
when your prostate removal surgery has left you with only one sphincter between your bladder and the world.
I am going to do you a big favor even though you did not ask for one. One of the candidates for some position in City government was on FOX 45 this morning saying that the people of Baltimore City need more opportunity. Well, here’s the truth. Pretty much the ONLY opportunities in Baltimore City are for Demoncrat politicians and the patronage positions they can parcel out. That is because they are the Kapos who control the Demoncratic Party Plantation System – Baltimore Division. They trade bare subsistence housing, bare subsistence food, bare subsistence welfare payments and a few bare subsistence jobs in return for your votes, which enables the Demoncratic Party apparatus and the Kapos who run your City to get rich. Baltimore City schools get more money per student than ALL but 3 of the 13,000 school districts in the US. Meanwhile, your kids can’t read, they can’t do math and your schools are falling apart. How do you feel about that????