The recent political climate here in the United States would have some believe that large corporations need to be protected from high tax rates; if they aren’t, then they’ll simply move more jobs oversees. The idea of tax protection also comes from what’s called the “Trickle Down” effect; basically stating that if a company has more room to move with their taxes, that they’ll apply those savings in hiring more people. The sad truth of the matter is that this is simply not the case.
I’m a founding member and owner of this company, and have been for over 2 years. And while, in the grand scope of all things business, we’re still considered a zygote, I’ve learned a few things along the way. One of which is that if I don’t have to pay taxes, I’ll try my best not to. At the end of the year, if I can pay an accountant to make things disappear so I owe Uncle Sam a bit less, than I’m going to do that. And while I won’t be able to get away with paying zero for long, I have a hunch that I’ll try to keep that momentum going as long as I can.
As we grow larger every day, I’m inclined to go against the grain on the corporate tax issue. Last I had read, approximately 70% of Americans want corporations and wealthy individuals to pay a larger percentage in taxes vs. regular, middle and lower-class families. The majority of people seem to now agree with the sentiment that if you’re making over $250k a year, you’ll get by if they take a few more percentage points. Thirty percent would cripple you if you made $30,000 a year. If you made $250,000, not so much.
If corporate taxes are not mandated and properly supported, then it’s human (corporate) nature to try and get away with whatever you can. Don’t believe me? Try this one on for size: Due to loopholes in the tax code, along with a few accounting tricks, General Electric paid $0 in federal taxes during 2010. On $14 billion in income. If you give an inch, they will take a mile.
I’m writing this as a plea to our elected officials; listen to the American people. Close corporate tax loopholes, and raise the taxes on those who are most able to afford it. As a business owner, if I can get away with GE levels of scamming the tax code, I realize that something is very, very wrong.
I want to pay my fair share. Please take my money.
