Your Opinion: G.E. example shows need for Fair Tax
Saturday, April 16, 2011
In recent News Tribune Letters to the Editor, there were two that made my case as to why we need the federal Fair Tax Act of 2009 (HR25-S1025) passed into law. The first was Mr. Luebbering’s letter on April 9 and the second was Mr. Garber’s letter of April 10.
Both mentioned that even though G.E. recorded profits of more than $14 billion in 2010, they paid no income tax.
If you watched the 60 Minutes program a few weeks ago, you would have heard that G.E. is one of many large U.S. corporations that use an off-shore address to avoid paying U.S. income tax and it is perfectly legal.
These are loopholes in the U.S. income tax code that are created by our legislators in return for large political contributions. G.E. is a large political contributor.
If the Fair Tax were in place there would no longer be any tax on income and these loopholes would be useless. Also, Mr. Settles on April 9 is right on target and I agree with him wholeheartedly.
Remember we all compete in this same global market and whoever can manufacture the best product for the less money comes out the winner. This is the most important basic fundamental of a successful business protocol.
The elimination of the IRS and all of its income taxes, including its 22 percent hidden income value added tax, plus 35 percent corporate income tax would lower the cost of our made-in-America products 57 percent in price on the world market and make us the winner.
This would more than make up for the third world countries cheap labor who work for $2 a day and we retain our current wage scale and standard of living.
We would be the only country offering a tax free business climate. Imagine what it would do for the job market. It would skyrocket.
All of the Fortune 500 companies would return and we could look forward to full employment for centuries to come.
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