Business Taxation

This author will first direct Readers to Calculated Risk which gives a fair interpretation of the current Beige book; there being some interested in the current stage of the Economy. The NYTimes, along with most other News media, say that the numbers and indicators are mixed. It reminds me more of a Breakpoint in a Tennis match.

A mild Recession at this time, no one could want for anything worse, would bring to the forefront dicussion of Taxes once more. Tax Cuts, the pride of the Republicans, will again be rightfully depreciated once more. The Cuts only generated a vast Government Debt load, without producing American Labor Employment or heavy recapitalization of American industry. Exports have never risen in the same magnitude as Imports, and the United States has become tied to foreign Imports on both the Manufacturing and Consumption levels. A major change of Economic policy will gain momentum if We are flung back into the Recession of 2000.

This Author relentlessly advocates an elimination of Income Taxes, a scarred Wasteland of old bombardments of specially legislated reliefs of every type and kind--some outrageously obsolete. My solution, though, does not call for a National Sales Tax, or any other form of Consumer tax rape. I advocate switch to complete Business taxation.

A graduated Profits Tax, based solely on Business Profits stands as the real answer to Growth promotion and realistic Economic policy. Business produces the real value of the Economy, providing the Income and Profits in total for the expenditures of Government, Consumers, and even Investors. This is the level at which Economic production should be taxed. Business already employs the Accounting procedures to meet Tax authority needs for rational taxation; they would face no greater Expense in Paperwork. All elements of the Production, Distribution, and Consumption cycle would develop the proper taxation based upon the real Cost of provision of the Goods and Services. Consumers would possess their Total Income upon which to decide their Buying decisions, while Business would finally treat Taxation as they should--a Production Cost. lgl