I had a day off from work the other day and decided to listen to a live session of the House of Representatives. The discussions revolved around taxing the rich and stemming the flight of corporations to foreign shores.
The Democrats normally pull out an example of some corporate CEO making millions while his workers make very little. You never see this “rich“ (high income earner) person being a basketball or football player who makes millions but pays very little in taxes. It is always the rich against the middle class. Did you ever notice the difference between the two? The rich don’t have to work and if you don’t work, you pay no taxes. In the process of getting rich, you pay taxes. Once you make it, you have no more taxes to pay. Middle class people have taxes to pay and if you have enough deductions to escape taxes, you’ll be classified as poor. From a basic point of view, the rich and the poor pay no taxes and the middle class is stuck with the bill. So we get a two hour Congressional litany on why Congress should tax the rich, great vote getter, rah rah, rah.
Congress also wants to stem the flow of companies moving offshore. Have you ever asked yourself the question, why all of the new startup companies, start in a garage? Answer: the government cannot control what you do in your garage. Want to start a business? The paperwork is ridiculous, not to mention the extra money needed to satisfy all of the state laws that needed to be observed. Before you even open, you have to open up accounts with the state for unemployment insurance, workman’s comp, Social security, employer tax ID and so on. They will send you forms 4 times a year that threaten you with fines if filled out wrong or sent in late. I can guarantee that you will not even comprehend how to fill out the forms unless you are a lawyer. And if you become a success, the lawyers will feed on your company as if it was dead carrion. No wonder manufacturing has moved to a safer less restricted havens.
You really don’t have to think too hard to realize that Congress has dug itself in a deep hole and hopes passing a few new laws will somehow change things back to the ways they were. Their approach is a little like walking down the stairs with both shoes untied. They know where they are going, but its going to be a little different this time.