Taxes have been lobbied down for Big Biz with no regard for the long term consequences. Our elected have allowed it. America needs to elect candidates who don’t buy in to this racket.
When business faces a genuine tax liability, the choice is to either use dollars to reinvest in the business or to pay taxes. It makes good business sense to choose to spend on facilities, equipment, supplies, and even wages and benefits because this is not shareholder money, it is tax money, redirected to improve American productivity.
But for too many big businesses tax liability has become a myth, theoretically “high” but performing “low” by industrialized world standards. Loopholes, subsidies, and low rates reduce the incentive to spend internally. Our power grid is failing, our internet is the slowest in the developed world, and placing new stores or factories takes local incentives – to name a few consequences.
And many businesses that cannot lobby their way out of taxes are hit as hard as wage earners in this out-of-balance scheme.
Without taxes in the equation, improvements in the means of production, a long term strategy, are at shareholder expense rather than taxpayer expense. And we all know about what is important to the few shareholders-that-matter on Wall Street: short term gain.