Existing laws reward large businesses at taxpayers’ expense
As it stands, the current tax rate for corporations is 35 percent. This calls into question whether the current rate should be dropped to be on par with lower rates in other countries or be maintained to garner revenue in an attempt to balance the budget. The greatest threat posed by maintaining the current tax rate is that it may cause businesses to relocate to tax havens and take away jobs during a time of financial instability. However, the fact that this would allow corporations to go without sharing in the difficulties many across the nation are currently experiencing. A responsible middle ground is essential.
The current system is unsustainable. We cannot fault businesses for trying to increase profit — it’s their core purpose. It is the responsibility of our politicians to fairly tax and have companies share in the sacrifice to close budget gaps and pay their dues to society like any other tax-paying citizen. Politicians feel threatened by the thought of companies in their state leaving and taking vital jobs that bolster and help rebuild the financial stability of their state. In Illinois, the CEO of Caterpillar is threatening to relocate as a result of recent calls to raise corporate tax rates in the state to address the state budget crisis.
What one must consider is that politicians are asking the middle class to make sacrifices with union rights being attacked, jobs requiring more labor for less pay and reduced benefits, all while corporate institutions are making record profits. Businesses buy representation through campaign donations to politicians and in turn these politicians create tax loopholes that essentially subsidize these large corporations. Corporations must pay their fair share, as they are members of our society. As Warren Buffet once said, “There’s class warfare, all right, but it’s my class, the rich class, that’s making war, and we’re winning.”