“Deja vu all over again.”
We all noted, back in 2009, that we’d really stepped in it this time.
Pundits have said that the new Administration’s need to stack accomplishments during the first 100 days is the reason for the rush to pass a health care bill. Nothing could be further from the truth.
Nicky Shaw and I talked about the two big issues in Washington before the 115th Congress left for their 97th vacation so far this year. “This Congress has been very busy,” she said.
Yeppers. They codified the Presidential Innovation Fellows Program, passed a GAO access act, disapproved of an SEC rule, authorized the National Science Foundation to support entrepreneurial programs for women (I guess women weren’t allowed to be NSF entrepreneurs before that?), and passed a joint resolution to appoint a citizen regent for the Smithsonian Institution.
Oh, yeah. And they repealed ObamaDon’tCare and are about to cut the corporate tax rate.
“I’m all for dumping the Unaffordable Care Act,” Ms. Shaw said. “I know it’s politicspeak to say this, but it is unsustainable.”
We’ve covered that taxpayer-financed insurance bailout for seven years. She’s right. And that pullquote up there about the rush to pass? That’s from 2009.
I’m also all for dropping the corporate tax rate (I’m all for any drop in tax rates) particularly since corporate earnings are double taxed, once when earned and again by the shareholders when received as dividends (corporations may not legally deduct their dividend payments). Here’s some background on business taxes
In 2014 the United States had the third highest general top marginal corporate income tax rate in the world at 39.1% (consisting of the 35% federal rate plus a combined state rate), exceeded only by Chad and the United Arab Emirates. Shareholders of most corporations are not taxed directly on corporate income, but must pay tax on dividends paid by the corporation. However, shareholders of S corporations and mutual funds are taxed currently on corporate income, and do not pay tax on dividends.
Despite what the tax-and-spend crowd tells you, it’s not the just the Kochs and the Soroses who get those dividends; retired geezers and all the still-working-soon-to-be geezers get the dividends on more than $25 trillion in retirement funds alone. “Trillion” with a “T.”
Hmm, if corporations are people (viz. Citizens United) then they are taxed without representation. I’m thinking corporate income tax is unconstitutional if they are taxed without representation and we shareholders should revolt. And, bonus, we can blame the Democrats for the income tax! See, the Democrats first called for income taxes back when the whole idea of it was still unconstitutional.
During the two decades following the expiration of the Civil War income tax, the Greenback movement, the Labor Reform Party, the Populist Party, the Democratic Party and many others called for a graduated income tax. The Socialist Labor Party advocated a graduated income tax in 1887. The Populist Party “demand[ed] a graduated income tax” in its 1892 platform. The Democratic Party, led by William Jennings Bryan, advocated the income tax law passed in 1894, and proposed an income tax in its 1908 platform.
In 1894, Democrats in Congress passed the Wilson-Gorman tariff, which imposed the first peacetime income tax. In 1895 the United States Supreme Court, in its ruling in Pollock v. Farmers’ Loan & Trust Co., held a tax based on receipts from the use of property to be unconstitutional.
Do ya feel as if we’ve been here before?
Do ya remember electing a President who promised “change”?
And the only actor who has changed in this play is the guy at the top.
Passing a health care bill in the first 100 days. Why was it critical in 2009 and critical in 2017? Back then I thought even Congress would rebel if they actually read the bills. Turns out that was wrong this year, too.
Passing a tax cut in the first months. I had hopes for tax reform. This year, it looks like that was wrong, too.
“Maybe We the People should revolt instead,” Ms. Shaw said.
And there you have it. Since corporations are people and they buy their representation, that means We the Overtaxed People are no longer represented and that’s the hook to use.