Reasoning Behind Eliminating Business Taxes

Whenever elimination of corporate/business taxes are mentioned, people get excited. People have been conditioned to see corporations as greedy entities. We see this conditioning happening all the time on television and in movies where CEOs are seen as Scrooge types who care more for profit than human lives. There are some who might be much like the Scrooge character, but there are many more who care for their employees. What we can't forget is that the CEO's primary obligation is to the stockholders. Sometimes it's hard not to hate a corporation when you have to deal with tech support or try to solve a simple billing problem. I sometimes feel like punishing them myself, but I know taxation should never be about punishment.

Red-Blue Biases and Misinformation

Salon.com posted an article by Alex Henderson, titled: States That Mooch Off The Federal Government Partner. The article listed ten so-called red states that receive more federal dollars than paid out. This argument has often been used to prove that Republican economics don't work. I take offense that free market practices are attached only to republicans, but that's another argument.

Let's first ask where red and blue labels originated. The red label is less simpler as it's the color used for the enemy on a military strategy map, at least according to the New York times. Some think it might have been an attempt to associate republicans with communists. Attaching colors and symbolism to movements is a common tactic. That makes sense if we use history's reference to the red menace, the Soviet Union. The blue state monicker came about because of geographic location. Most blue states are located along the coast, especially Pacific blue states. It was during the 2000 election that states got an official color designation because of how they voted in the presidential election.

Corporate taxes at the Debate

In the debate Obama said that the USA was paying corporations to move out of the country. Romney responded correctly that he had never heard of such a thing. The truth is Obama and the Democratic tax policies are in part running corporations out of the country.

We all know this is a global market. Any successful major corporation is doing business out of the country. In all except the USA a corporation pays corporate taxes only on the money earned in that country. If a Japanese corporation operating in the USA moves those earnings after US taxes into a Japanese bank, there are no additional taxes.