To start off, I’d like to review some elements of the Obama tax plan, with a specific focus on what Senator Obama plans to do with corporate tax rates. You can view his actual plan here on his own website (page 4). All of the steps Obama proposes would increase the amount of taxes corporations pay, not necessarily the tax rate, but it would eliminate things corporations currently do to lower their tax bill. Democrats call this “making sure corporations pay their fair share”…nuance.
Many people are arguing on how this would affect those companies, their employees, and their customers. Predicting the outcome of such a change can prove rather difficult. However, here in Chicago, there’s a perfect example brewing of the effects of Obama’s tax increase on corporations. CBS 2 reported today on Mayor Daley’s proposal to raise taxes on parking.
The parking industry says taxes have been raised six times in the past 12 years, and they have no choice but to pass that cost onto the drivers. They said the expenses incurred from the new tax could price some motorists out of parking at all.
As motorists entered the Lake/Wells Self Park Facility, 175 W. Lake St, workers handed out flyers and encouraged them to call their local aldermen and fight the increase. They say Chicago has the second highest parking tax in the country, and with the new proposal it could rise from 27 percent to 33 percent.
So the Chicago government wants to increase the tax rate on parking garages and lots located in the city, sounds simple enough. However, the parking lot owners are arguing that if their tax rate is increased, they will have to pass along this expense to their customers. Let me repeat that, in bold.
…if their (parking lot owners) tax rate is increased, they will have to pass along this expense to their customers.
For some reason, brain-dead liberals and Obamabots (notice how I separate the two, Obamabots are in a cult class of their own) can’t seem to fathom this small little fact; businesses do not pay taxes. Sure, people might call it a “corporate tax” or the Federal Government might send a bill to a company for “taxes”, but it’s not the corporation who pays it. The tax burden of every single corporation in existence today is paid for, in full, by that corporation’s customers.
If a company has its tax rate raised, do you think their first instinct is to cut everyone’s salaries? What about making less profit? I’ve got news for you, corporations don’t want either of those things to happen and will go to great lengths to ensure it, so they do one of two things;
1) lower their costs for producing their product (which in many cases results in laying off workers and outsourcing their jobs), or
2) increase the price of their product.
I would hope that the Obama camp considers both things to be bad for America. Obama’s tax plan already proposes to “cut corporate taxes for firms that invest and create jobs in the United States”. Now, what exactly Obama means by “create jobs”, is up for debate. How many jobs? Do I get a tax break for creating just one? How about 40? Furthermore, any tax break for a corporation to keepa job here in the US is meaningless unless that tax break is equivalent to the cost difference between keeping a job here and shipping it out. What’s so difficult for people (read: liberals) to understand?
By raising tax costs on corporations and business, you are guaranteeing they pass along those increased costs to their customers, OR, ship even MORE jobs overseas to lower their costs. What Obama will end up doing is losing MORE jobs in the US because it simply because too expensive to continue to do business here in the United States.
By the way, why is it that Daley is even proposing this tax increase in the first place?
Mayor Daley has proposed the Loop parking tax to help close a massive budget shortfall. He has also proposed hiking the city’s two-tiered amusement tax from 4 to 5 percent for mid-sized venues, and 8 to 9 percent for large sporting venues.
That’s right, there’s a “massive budget shortfall”. Government is spending more money than it makes, which isn’t really that suprising. Most of us regular Americans only spend what we can afford, but government has a blank check it can write at any time to give itself an increase in salary courtesy of the taxpayers, all it has to do is pass a tax increase. Still, time and time again, the residents of Chicago vote these Democrats into office. What have they done for you? Kept taxes low? Remember that little increase in sales tax a year ago? What about lower the crime rate? Oh, right…that.
Tell me again how it is that Democrats can claim to be “sticking up for the little guy”? What have they actually accomplished that benefits the citizens of Chicago?