Government Verses Business Profits, Growth, and Jobs

Excessive taxes and regulations, and poor governmental policies are major business costs that reduced resources available for business creation and expansion. For example, U.S. corporate taxes are the highest in the world, and high U.S. progressive income taxes — that President Obama proposes to increase — drive many jobs offshore, and stifle growth. A fundamental question is: “What are the impacts of government driven business costs on the whole nation?”

Is One New Job Worth Borrowing $3 Million?

Before voting consider the multi-million dollar cost per job created since the financial collapse.

Before the collapse of Lehman Brothers in August 2008 the number of employed persons in the United States was 145.47 million. This number dipped to as low as 139.27 million. Today it stands at 142.1 million. Thus, 6.2 million persons were impacted by the collapse, today 2.83 million have been added back into the workforce, and we are still have 3.37 million fewer employed than in 2008.

DANGER: America’s Troubling Changes

New and troubling is that some politicians see political gain in demonizing economic success, and in attacking the very American notion of individual initiative and personal responsibility. Even more troubling is the fact many Americans have been duped into believing an individual‘s success should be shared, and individual responsibility should be replaced with “group” or “government” responsibility. Do Americans realize the long-term impact of such changes?

Principles-Based U.S. Tax Systems

Political expediency to retain power and garner votes has resulted in 80,000+ pages of tax codes that exasperate our current national problems. Fixing the nation’s present fiscal mess will require tax changes and spending controls. New tax systems are proposed that are based on a long-term focused set of principles rather then short-term politics.

The federal government’s income is dominated by corporate income taxes (~15%), individual earned and capital gains income taxes (~50%), and employment taxes (32%). Employment taxes are mostly “insurance policies” for retirement (e.g., Social Security), medical (e.g., Medicare), welfare (e.g., basic survival), and jobs (e.g., unemployment). Estate, gift, and excise taxes are the bulk of the remaining taxes (3%). The progressive individual and corporate income taxes constituting 65% of the federal income are the focus here.

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October 2012
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