Monday, March 5, 2012

Alan Grayson on the 99 per cent

Uploaded by  on Jan 19, 2012

These are most of the real problems facing America, not tax cuts for the affluent or for corporations.

Two out of every three United States corporations paid no federal income taxes from 1998 through 2005, according to the congressional Government Accountability Office.

Nearly 7 in 10 businesses are exempt form corporate tax because they are organized as a "pass through" S-corporations or LLC's .

In addition, 99 percent of all independent enterprises in the country employ fewer than 500 people. This is the upper threshold that he Small Business Administration uses to define  a "small business."

According the the SBA, small businesses represent 99.7 percent of all employer firms and employ half of all private sector employees.

Likewise, the affluent can hire excellent accountants and lawyers to handle a myriad of issues facing them, an option that is not available to most middle class Americans. 

In addition, the affluent often do not work. They invest their fortunes in stocks and bonds and clip coupons when they need cash. The short term capital gains tax is 15 per cent which is more than half of the income tax rate that the top income tax earners pay. 

This is why men like Rick Scott don't take their government salaries. They don't want to be bothered with paying income tax. However, Scott did take his government health care that is not taxable.

We know that corporate taxes are primarily paid by the large Fortune 500 corporations and that the affluent don't directly hire Americans, businesses do. 

Many corporations such as GE, the largest American corporation, pay no corporate tax at all because of tax loopholes. Federal revenues from corporate taxes has declined significantly since 1962.

Yet one in three Americans votes for a political party that advocates tickle-down economics. According to Wikipedia,  he idea that tax breaks or other economic benefits provided by government to businesses and the wealthy will benefit poorer members of society by improving the economy as a whole. 

C'mon america. Wake-up.  What  kind of conservative wacky tobacky have you been smoking? 

Businesses become successful by increasing their customer base, not through tax breaks. You employer is far morel likely to be a small business than a large corporation or the millionaire next door.

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