Sunday, February 28, 2010, PM | Leave Comment
I was surfing yesterday [Internet surfing is the most I do – too scared of water] and I came across a site “The Center on Budget and Policy Priorities.”
It has given an example of the 2008 federal budget in terms of spending and financing.
Something caught my eye on the graph for financing the federal budget and that was about the contribution that individuals make to the U.S. Treasury as compared to corporate taxes. Look at the following graph:
Individual income taxes 38% and corporate income taxes 10%. That does not include payroll taxes of 30%. I don’t understand why the individuals’ share of income taxes was not taken out of the payroll taxes and added to the individual income taxes of 38%.
But still, corporations paid taxes less than a third of those paid by individuals. If the government is helping companies, big and small, in their Research & Development, I think I understand that. We need to invest in Basic Research. But still, the taxes paid by the two entities have a huge difference.
Look at it another way. If corporations take advantage of the loopholes in the U.S. tax system, where does the money go [I know but besides bonuses]? In essence, the government is helping them monetarily to run their business.
How come, then, we have such a large unemployment rate? How come the companies have laid off so many good and decent folks? How come they are not hiring?
In a Nutshell
I wish I was an economist to understand this shit. Has any economist, especially the ones in government, lost sleep over it? Does anybody think about these things? I mean the researchers spit out literally millions and millions of pages every year, has anybody given an iota of thought who is contributing to what and how?
Maybe I [the American public] is not supposed to understand how and why these things work the way they do
Yap! That’s probably it. We have become a nation of Hear no evil, See no evil, Speak no evil. Has anybody figured out yet how the American people can regain their part in running the government like in the days of Mr. Lincoln and the days before him? I and so many others would like to know.