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There is a Barack Obama television ad that criticizes John McCain for giving tax breaks to corporations. It's one of those with the very dire, serious announcer, who warns you of the impending doom of voting for McCain (most political ads have that 'impending doom' tone, don't they ?). The announcer says:
"Can we really afford more of the same? John McCain's tax plan: For big corporations _ $200 billion in new tax breaks. Oil companies _ $4 billion. Companies shipping jobs overseas _ keep their tax giveaways while 100 million Americans get no tax relief at all. For the change we need, Barack Obama. A plan that cuts taxes for middle-class families three times as much as John McCain would. Barack Obama. President."
Whew. Sounds like that McCain guy is a real snake, right ?
But maybe we should analyze things first, before we blindly buy into the concept that John McCain (he's a George W. Bush clone, you know), is inherently evil and out to utterly destroy America in order to....uh, what's the reason again ? Oh yeah...to help his rich buddies get richer while the rest of us eat worms to stay alive and set our own hair on fire to keep from freezing to death under the bridges where we live.
I want to address this issue of giving tax breaks to corporations. Barack Obama is being accusatory when he says John McCain's plan will help corporations. Accusatory, as if it's bad to help our American corporations succeed. I have never understood this mindset, and I never will, but first let's clarify a few things. This Obama ad is about the fact that John McCain wants to lower the corporate tax rate from 35% to 25%. Obama starts his ad by asking "Can we really afford more of the same ?", referring to that tired old talking point about McCain being just like Bush, a Bush 3rd term, yadda, yadda. That's just political smoke. And since Bush never lowered the corporate tax rate, I sure don't get how McCain is "more of the same" by doing it. Bush left our corporate tax rate at 35%, the second highest in the entire world, at a time when the rest of the world was lowering their business tax rates. This leaves us at a disadvantage, and is one reason we lose jobs. So, by lowering the corporate tax rate, McCain isn't doing 'more of the same', he doing something different. He's implementing CHANGE. It's Obama who would be doing more of the same by leaving the corporate tax rate at it's current high level.
And look at the state of our corporations. Our financial industry is collapsing like the house of cards it has become. Our mortgage industry is losing money faster than a coked up gambling addict. The credit industry is folding. The auto industry is tanking. The airline industry is on the verge of collapse. We're losing jobs. The stock market is dropping. Maybe helping our businesses to succeed isn't such a bad thing. After all, that's where our jobs come from. That's where our economy comes from. To hear Democrats talk, you'd think business was somehow the enemy. It isn't. It's our lifeblood.
Democrats also respond to lowering the corporate tax rate by making the statement that "72% of corporations don't pay any corporate income tax." This statistic come from the Congressional Quarterly. You will never hear a more misleading statistic than this. It's actually 72% of foreign-owned corporation that don't pay corporate income taxes. Only 55% of American-owned corporations don't pay income taxes, but you have to look at the reasons for this to find the truth. The reason 80% of those corporations aren't paying any corporate income tax is because THEY AREN'T MAKING A PROFIT. The remainder of them are mostly sub-chapter S corporations, small businesses that pay income tax under the personal income tax structure. Rather than proving their point, the Democrats own talking point really reveals that the majority of our businesses ARE LOSING MONEY. They could use some relief. And most of our businesses in this country are small businesses, not gigantic corporate monsters. When Democrats talk about corporations, they want you to think of Exxon-Mobil. You shouldn't. You should think of all your neighbors and where their jobs comes from. You should think of what feeds their families, and what happens to this country when the government makes it harder and harder to succeed in business endeavors, forcing more of those businesses to fail.
My only problem with McCain's plan is that he doesn't reduce corporate income taxes enough. Seeing as how business is vital to our economic well-being, I think ZERO is the best corporate income tax rate. That would be pro-growth and pro-job. Sending all those tax dollars to Washington D.C. will never be that.