2012 election campaign

Tax Facts Show Lower Personal Income Taxes Will Not Create Jobs

taxformsWe've noticed a hell of a lot of political B.S. baffle going on, in particular on business taxes. What happens is politicians conflate small business taxes with the individual income tax and that is due in part to the actual tax code.

The GOP typical claim is a lower top personal income tax rate will allow businesses to hire more people. That is really a lie. Business profits can enable more hiring, tax refunds for hiring and retaining employees can incentivize new jobs, but the personal income tax rates for those who own businesses has negligible effect.

One thing that gets lost in the rancor are business tax deductions. An employee's salary and most benefits are a business deduction. The business owner would not pay taxes on the costs of hiring a new employee beyond the payroll taxes associated with hiring, about 6.2% of salary. The most important element to hiring is demand for goods and services provided by the business, not taxes.

There are four most common business entities in the United States. Corporations, partnerships, S-corporations and sole proprietorships. Partnerships are primarily two types, a limited liability partnership (LLP) or a limited liability company (LLC). There are also other types of businesses, such as RICs, which are glorified investment vehicles with capital gains tax pass through. S-corporations also allow pass through taxes, although not as lenient as partnerships. Below is a graph of number of these firms by type, who had at least one paid employee during part of 2009.

 

type of business 2009

 

Lift the Veil on Corporate Money in Politics

corp politcs
Originally published by Bloomberg

America today is very different from the country that fought the Revolutionary War and framed the Constitution. Then, it was a nation of farmers; today, it’s a nation of corporations. Most Americans now work for corporations, the largest of which command resources and money on a scale beyond that of many nations.

Yet when it comes to public issues like jobs, the distribution of wealth or even plain old politics, we still talk as we did 200 years ago. Remarkably, too few citizens discuss the effects of corporate behavior on jobs, health care and the economy, even though corporations affect all of these through their influence on elections and the actions of government.

As President Theodore Roosevelt noted in his first annual message to Congress:

Great corporations exist only because they are created and safeguarded by our institutions; and it is therefore our right and our duty to see that they work in harmony with those institutions.

The key to doing this is to hold corporations accountable by ensuring that their activities are made visible.

From the end of World War II until about 1980 -- even through the economic travail of the ’70s, as the U.S. faced the Arab oil embargo, rampant inflation, significant growth in foreign competition and the aftermath of the Vietnam War -- it was generally considered normal for large corporations to acknowledge all of their constituencies.

It Is Over! Thank God!

dweedledum$13 million, 13 debates which said ...oops....I can't remember what was said, media black outs on some candidates, talking pundits ad nauseum and 6 months later, the Iowa caucuses are finally over. Thank God! 122,255 people decided who to pick in the Republican Iowa caucuses. That's about one hundred dollars per vote. The millions in spending bought actually a guy who had the least amount of money.

The Presidential Candidate Not There

It seems safe to say no one is happy with the Presidential candidate field. Poll after poll shows strong disapproval with government and why not, with inane policies promoted by both sides.
corporate politicians

Tonight is yet more political football with pundit coach potato quarterbacks featured on every cable news channel. It's another Republican debate.

So, why is a GOP candidate, a former Louisiana governor as well as Congressman, now running for President not there?

Because they wouldn't let him.

Buddy Roemer is running for President. Yup, a GOP candidate is talking about China, corruption in politics, trade and jobs. He's even picking up on one of Obama's empty campaign promises, removing corporate tax incentives to offshore outsource your job. Even more promising for broad appeal, it seems Roemer was once a conservative Democrat and switched parties. Hopefully that implies he might actually have an open mind to agenda that adds up by the numbers and makes economic sense, unlike most of the GOP field. Roemer also has a Harvard MBA and unlike Bush, didn't skate, so he might just have a little clue on economic policy that isn't made up by corporate lobbyists.

Quelle Surprise! Democrats Have a Candidate for the Presidency!

Originally published on The Agonist
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Disclaimer: The Economic Populist is a politically nonpartisan blog. The author's views below are not necessarily those of the editors of EP or of other writers who contribute to this blog.

"This is a political crime of deception, an enormous bait and switch, in which liberals and quite a few independents were misled by a serial liar who purposely characterized himself as a reformer…" Numerian

Did you receive your email from Barack Obama yet? If you are a Democrat, or on his campaign mailing list, the president has promised you are going to be the first to know when he formally launches his reelection campaign. It could be any moment now; apparently the White House is waiting for a slow news day when Libya and Fukushima and Congressional budget negotiations aren’t dominating the media agenda. Once the news is out, you are expected as a loyal Obama supporter to start sending in campaign donations and begin attending campaign organization meetings.