Saturday, May 2, 2009

Obama Pushes to Levy Taxes on Overseas Profits

-President Barack Obama and Vice President "Middle Class Czar" Joe Biden-

Will you look at that picture. How could anyone not want to have a beer or go bowling with either one of these guys?

Today’s San Jose Mercury News item reveals that Obama's push to levy taxes on overseas profits is alarming a few tech giants. Will this “push” topple the current elitist “insiders only” casino culture of looting the American worker?

Government needs revenue to provide the basic infrastructures vital to its citizens living in our communities including roads and bridges, social services, jobs, and healthcare. While the U.S. undergoes this economic depression, much thought is being given as to how we can pay for such much needed services and overdue reforms. So they tax a lot of stuff, including entities like corporations (offering them gratuitous loopholes), back peddle on high speed rail and work 24/7 to eliminate job opportunities for millions of too kewl for gruel American workers.

President Obama is now raising an ambitious question: who will pay for America’s infrastructure? Will his administration show up those GOP windbags and do the right thing?

People at the top end of the spectrum don’t make their money by the dreadful pastime called work but instead through investments. The way our current tax code is structured, rank and file workers do the heavy lifting while corporate executives including CEOs and board members by comparison get a free ride. Just tweet hedge fund “real worker” Chelsea Clinton, who can explain this phenomenon a whole lot better than moi, in spades. (Yours truly btw is a fan of the Clinton family with one exception to the Clintons’ role in the wholesale sell out of American white collar jobs to the India/tech lobby. For them, the expression “Put American Workers First” means underneath an eighteen wheeler.) We hope, albeit w/o bated breath, that they reevaluate this treasonous and inhumane position.

Back to Obama’s push to levy taxes on overseas profits and to offer a simple solution…The rich are always whining about how they hate something called double taxation. “Double taxation” simply means that the government taxes, say, my humble company – LWOH -- and THEN turns around and taxes me AGAIN when I take money out of my own company.” Boo-effing-hoo, indeed.

But civil and social infrastructures aren’t handed down from Santa or Jesus or Yahweh or Allah or the Easter Bunny or the Buddha - although many fundamentalist believers might argue they should be -- and that’s why the human condition created such modern day mythological, hero-worship, luminary figures like Bono, Obama and The Gay Swami. The stark reality is that even our new president knows (better than our last one, much to his credit) that they have to be paid for by somebody…and even though corporations are taxed as entities like people, they are not taxed at the same crunch rate and get a lot better tax breaks than Joe Q. Non-Portfolio. Now, I don’t mind being taxed at a higher rate just as long as I know my money is being spent on infrastructures and social programs via policy reforms designed to sustain, improve and even enrich my life and those of my family and others in my community.

So here’s the solution:

Let’s not tax companies at all but in exchange, let’s BRING BACK the top tax bracket to 90% to get rid of THE DOUBLE TAXATION PROBLEM. YOU ASKED FOR IT, YOU GOT IT.

I’d be happy if government didn’t tax corporations at all but instead stuck it to the non-working class, multimillionaire portfolio community by bringing back the 90% tax bracket.

We can all live with resurrecting the 90% tax bracket, along with shutting down the Caymen Islands money laundry chute.

We can take it at the top, President Obama. Et tu?

Yesiree, YES WE CAN.


1 comment:

prezdumas said...

The 90% top tax bracket was in effect for a long time. It was the top bracket for a period which included the time from 1950 to 1965. You know, when the American economy became the dominant world economy and the ranks of the American middle class exploded. When America became the richest, most powerful country in the world.

The top tax bracket was reduced to 70% after that. This was the top tax bracket until 1985. In this period, the American middle class started to slip in earnings.

Then we got a real REAR END SUPPLY SIDE STIMULUS. The top tax bracket sank precipitously to as low as 28%. The American middle class shrunk during this period. Wages stagnated relative to inflation.

Also, during this period, the Social Security tax went through the roof for the lower and middle classes. (This is when Alan Greenspan FIXED social security--appearently he has forgotten that promise, since he now declares it is still broken). Not so for the upper class, however. Their Social Security tax is limited to the first pittance of earnings. Also, the non-working class was treated to "long term" capital gains tax breaks. (Where long term is defined as 18 months--not quite long enough to get pregnant twice).

Anyone see a trend? Anyone have any doubt what "trickles down" in "trickle down economics?"