The Mudcat Café TM
Thread #30460   Message #392497
Posted By: GUEST,Liberal
07-Feb-01 - 04:38 PM
Thread Name: BS: Bushwacked - FIVE
Subject: RE: BS: Bushwacked - FIVE
>According to Citizens for Tax Justice, during the 1950s and '60s, business paid about one-fourth of the taxes. Its share is now down to one-10th. That leaves you-know-who to pay the rest.

Believe it or not, taxing business is worse than taxing you directly. Taxes laid on a business is an expense passed on to the consumer. To account for and manage this particular expense, business must spend time and money - which, when added to the tax, effectively raises the tax rate higher.

It would cost you less to pay directly to the IRS. Trouble is, people would then realize what they are really paying the government, because the tax would not be hidden in the cost of goods and services. This makes politicians nervous.

Of course, if someone believes business should not make a profit, or that profit should be limited by government, then they should pay attention to history.

The current fiasco in California is a good example. The state government limited the retail rates (cost to the consumer) of electrical power. They also restricted the power companies from negotiating long-term rates with suppliers. They did not allow new power plants to be built, in deference to the environmental lobby. In fact, no new plants have been built in over a decade. Meanwhile, the population has continued to expand and demand for power escalated to the current point that there is a shortage. When wholesale power rates (the cost to the power companies) went above the rates they were allowed to charge consumers, guess what happened? They are in the red by BILLIONS of dollars. No new power sources within the state. They must buy from others at market rates, in spite of the rate cap for consumers.

Now the state government wants to insert itself as the middleman - buying power at long-term negotiated rates (which they wouldn't allow the power companies to do!), and then selling it to the power companies, so they can then sell it to the consumer. Incredibly, they think this will save money! Can you say: 'Another layer of bureacracy'? It won't be free.

When government bureaucrats think they can do better than the power experts - the people who have been in the business for years, it is arrogance of the highest order. Anyone who thinks government bureaucrats don't feather their own nest should reconsider.

Some people may say that power companies should be non-profit. I guess that is better than driving them to bankruptcy, but the incentive to meet customer demands is removed.

How many of you are willing to work for basic living expenses only? Maybe even work overtime when the boss asks - with no additional compensation?