Letter to the Editor
You have my permission to publish this letter.Any economic problems our country has are caused by our ever-changing tax code. We spend hundreds of billions of dollars every year just calculating our taxes. Our corporate and payroll taxes act like a value added tax in that they cascade down to the final consumer. Our foreign competitors are fully aware of this and it enables them to bloat the prices of their products when they ship them here. Even then they are able to beat our prices. Foreign companies that export their goods to us have their value added taxes returned to them.
Our companies do wish to be able to exist and compete. Our current 35% corporate tax defeats most efforts to remain in America. “The United States continues to be a major contributor to the Irish economy, with investors attracted by its low 12.5% corporate tax rate. According to information technology trade body ICT Ireland, some 25% of US investment into Europe has been channelled into Ireland over the last ten years.” Do you still wonder why our trade deficit is so high? If our corporate tax rate were zero how many companies would rush here to build new plants and hire new people to operate them?
We need our politicians to step forward and tell you that businesses don’t pay taxes, people do. A business tax is a hidden tax on consumers. You know that you “contribute” 7.65 percent of your income to payroll taxes. Where does a business come up with the other 7.65 percent? Do they print the money in a back room? They may increase the price of their good or service to cover the cost of that tax. Most economists believe that wages are held lower to cover the cost of payroll taxes.
Visit www.fairtax.org for a solution.
Best regards, Al Ose
Regional Director WI, IA (volunteer)
3311 Enchanted Drive
Wisconsin Rapids, WI 54494
US Election Result Is Good News For Ireland, says Ahern, by Jason Gorringe, Tax-News.com, London 08 November 2004