The United States has the 2nd highest Corporate Tax in the Industrialized World. The Corporate tax on profits is 35%. This means that 35 cents out of every dollar goes to the Federal Government. The current rate on Capital Gains is 15% this means 15 cents out of every dollar of investment goes to the government.
If Corporations were free from their current tax rate, the money saved could go toward new product development, manufacturing, expansion and, finally, jobs. When more people work, more people pay tax. When more taxes are collected, from an expanding work force, the federal government collects more revenue.
If the Corporate tax on profit were lowered, it would be a success for America. As your Congressman, I would work toward developing real tax reform that would enable private business to do what private business does best, and that is to develop products for the market place, manufacture products in the market place, distribute products for the market place and expand and hire Americans to fill the new job openings that would occur in the free market place.
As it stands, close to 48% of Americans don’t pay income tax at all. The burden continually is place upon the middle class and the rich. Currently, according to the IRS, 70% of all taxes collected are paid by the rich.
More jobs results in two things: First, it would provide more revenue to the Federal Government to create the programs that help the people who need help. Secondly, it frees up private capital for investments and consuming.
Additionally, it is of no value to America if Corporations and individuals are allowed to go abroad, conduct business for profit and are not taxed on the profit they make overseas. Where is the incentive to provide jobs and expand business here at home if this is what’s happening now? The answer: there is no incentive.
Real tax reform would do two things that are not happening now. One - it would free up revenue for investment. Two - it would be an impetus for job creation in the private sector, here in America.
As your Congressional Representative, I would start the dialog immediately, so that I could do my part in providing a platform for unprecedented, fair, but equal, tax reform.