New, Simple and Better, It's Time!
I’ve got a question. Why do we approach the problems that confront us domestically in such a sequential way when we all know that policies affect each other?
We complain about businesses hiring illegal aliens knowingly. Then we ask, “Why do they do it?”
The Cost Of Doing Business More Than The Hourly Wage
Why do we feel this question is answered when looking at just the hourly wage?
It’s less expensive to hire those that don’t have the baggage of Employee Withholding.
The amount a business pays to hire another legal wage earner can easily increase by 22% over their hourly rate they pay.
We complain about businesses hiring illegal aliens knowingly. Then we ask, “Why do they do it?”
The Cost Of Doing Business More Than The Hourly Wage
Why do we feel this question is answered when looking at just the hourly wage?
It’s less expensive to hire those that don’t have the baggage of Employee Withholding.
The amount a business pays to hire another legal wage earner can easily increase by 22% over their hourly rate they pay.
When a business man adds all of the cost of hiring one new employee there is an incredible amount of overhead assumed.
An example would be if you paid an employee $10.00 an hour, the total cost to a small or large business could be as much as $13.00 an hour.
Have any of you done the math?
We often make the mistake of thinking that ‘big’ business’ is the ‘culprit’ of our current woes. The multi-nationals are to blame. That is simply erroneous; small businesses out number large businesses by the millions.
Let’s take a small business first.
1.) Matching payroll withholding tax
2.) Cost of compliance (hiring accountants or bookkeepers attempting to comply).
3.) Matching retirement
4.) Matching Medical
Hiring an illegal alien immediately wipes away these costs plus the business owner gets to pay them less per hour.
An example would be if you paid an employee $10.00 an hour, the total cost to a small or large business could be as much as $13.00 an hour.
Have any of you done the math?
We often make the mistake of thinking that ‘big’ business’ is the ‘culprit’ of our current woes. The multi-nationals are to blame. That is simply erroneous; small businesses out number large businesses by the millions.
Let’s take a small business first.
1.) Matching payroll withholding tax
2.) Cost of compliance (hiring accountants or bookkeepers attempting to comply).
3.) Matching retirement
4.) Matching Medical
Hiring an illegal alien immediately wipes away these costs plus the business owner gets to pay them less per hour.
Does the community benefit?
No; because these wages are paid under the table by the majority of businesses or they pocket the money after deducting it (in paper work) from the employee thus wiping out the expense. They hire tax accountants to make sure their books are “in order”. This is another indication that our tax code is too complicated to comply with and too easy to cheat.
The multi-national corporations are working under the exact same pressure due to our regressive tax structure. The reader might be muttering now that I have the temerity to excuse multi-national corporations who deny Americans jobs and giving it to foreign workers just because they’re cheaper.
Excusing and discussing the reasons behind an action is two different things. If you are in a business where your survival is threatened by other companies gaining market share while yours shrinks to the point of bankruptcy, you are more likely to outsource as many jobs as you can, than to commit financial suicide. We find it hard not to excuse illegal aliens because they are poor and nobody wants to be poor. People are people and the rich man doesn’t want to be poor either, which is evident by their working to succeed every bit as hard as the day laborer.
Cheap labor is mandatory in a world wide economy. Any country that discourages cheap labor by its tax policies will see outsourcing. The greater the cost of compliance, the greater the incentive it is to hire outside that country. The more advantageous off shore accounts become.
We have treated foreign trade much like we’ve treated our borders. We tax our native companies very heavily on all exported goods, yet continually lower tariffs to imports to invite trade. Complain about the multi-nationals if you want but this attitude is like creating the weather and then complaining when it rains.
We’ve lowered the “tariffs” (looking the other way) on illegal immigration and we are paying the price. We lower the tariffs on foreign imports, tax our exports and expect any different?
We have lost much of our manufacturing base because of this vindictive and oppressive tax code brought on by the ‘tax the rich” mantra. The favorite campaign words are “looking after the working man” and taking care of the poor and elderly. We tax the elderly in a variety of different ways. We tax the poor with payroll withholding during the year when the poor need every bit they can get.
We tax the mom and pop shop for just having the gumption to start a business, and woe be to any of these if they file wrong.
We have a tax code that forces every American to be punished by law for not filing correctly then we allow our representatives to write a 2.1 million word tax code.
We hear constantly the accusation that tax cuts are for the rich. It is a constant struggle between two sides of the spectrum. One gains politically with those of the lower and middle income, the other gains politically by supporting those that hire people so they can work. Between the anti-business lobby and the anti welfare lobby there is a constant struggle, but this is exactly what keeps both parties in power.
Now there is a system offered to end the debate. Has our tax code succeeded in taxing the rich so that they pay their share? The vast majority of Americans believe correctly that the rich, through lobbied exemptions, exceptions and deductions can strike the right balance of these to not pay any taxes or very little.
This system offered by eight leading economists, completely un-taxes the poor and presents a 23% tax on consumption on the well off and the rich. It is guaranteed because they pay every time they pay for that mansion on the hill, or that new Mercedes.
Do we really expect these native corporations, out of some form of patriotism, to risk their existence by not doing those things which guarantees their success? Remember, multi-national corporations hire a lot of Americans too. When they feel the pinch, thousands of Americans are laid off.
We’ve set the stage. We’ve taxed self employment. We’ve taxed wages. We’ve triple taxed the same money, we’ve written a 2.1 million word tax code and nobody seems to think that this has set the stage to bring about our present failed immigration policies. They completely disassociate the similarities between lax immigration laws having the ability to ‘save’ our native businesses and outsourcing being the same response, to a unwieldy and unfathomable tax code that taxes productivity. They’d rather take the easy way and say, “Damn those evil multi-nationals!”
The multi-national corporations are working under the exact same pressure due to our regressive tax structure. The reader might be muttering now that I have the temerity to excuse multi-national corporations who deny Americans jobs and giving it to foreign workers just because they’re cheaper.
Excusing and discussing the reasons behind an action is two different things. If you are in a business where your survival is threatened by other companies gaining market share while yours shrinks to the point of bankruptcy, you are more likely to outsource as many jobs as you can, than to commit financial suicide. We find it hard not to excuse illegal aliens because they are poor and nobody wants to be poor. People are people and the rich man doesn’t want to be poor either, which is evident by their working to succeed every bit as hard as the day laborer.
Cheap labor is mandatory in a world wide economy. Any country that discourages cheap labor by its tax policies will see outsourcing. The greater the cost of compliance, the greater the incentive it is to hire outside that country. The more advantageous off shore accounts become.
We have treated foreign trade much like we’ve treated our borders. We tax our native companies very heavily on all exported goods, yet continually lower tariffs to imports to invite trade. Complain about the multi-nationals if you want but this attitude is like creating the weather and then complaining when it rains.
We’ve lowered the “tariffs” (looking the other way) on illegal immigration and we are paying the price. We lower the tariffs on foreign imports, tax our exports and expect any different?
We have lost much of our manufacturing base because of this vindictive and oppressive tax code brought on by the ‘tax the rich” mantra. The favorite campaign words are “looking after the working man” and taking care of the poor and elderly. We tax the elderly in a variety of different ways. We tax the poor with payroll withholding during the year when the poor need every bit they can get.
We tax the mom and pop shop for just having the gumption to start a business, and woe be to any of these if they file wrong.
We have a tax code that forces every American to be punished by law for not filing correctly then we allow our representatives to write a 2.1 million word tax code.
We hear constantly the accusation that tax cuts are for the rich. It is a constant struggle between two sides of the spectrum. One gains politically with those of the lower and middle income, the other gains politically by supporting those that hire people so they can work. Between the anti-business lobby and the anti welfare lobby there is a constant struggle, but this is exactly what keeps both parties in power.
Now there is a system offered to end the debate. Has our tax code succeeded in taxing the rich so that they pay their share? The vast majority of Americans believe correctly that the rich, through lobbied exemptions, exceptions and deductions can strike the right balance of these to not pay any taxes or very little.
This system offered by eight leading economists, completely un-taxes the poor and presents a 23% tax on consumption on the well off and the rich. It is guaranteed because they pay every time they pay for that mansion on the hill, or that new Mercedes.
Do we really expect these native corporations, out of some form of patriotism, to risk their existence by not doing those things which guarantees their success? Remember, multi-national corporations hire a lot of Americans too. When they feel the pinch, thousands of Americans are laid off.
We’ve set the stage. We’ve taxed self employment. We’ve taxed wages. We’ve triple taxed the same money, we’ve written a 2.1 million word tax code and nobody seems to think that this has set the stage to bring about our present failed immigration policies. They completely disassociate the similarities between lax immigration laws having the ability to ‘save’ our native businesses and outsourcing being the same response, to a unwieldy and unfathomable tax code that taxes productivity. They’d rather take the easy way and say, “Damn those evil multi-nationals!”
By it's very nature our tax code punishes accomplishment whether it be earnings, savings or investments.
There are no shades of gray. It is simply wrong.
Why not levy a 23% tax on all imports and repeal all corporate taxes?
Dare we strengthen what makes us strong?
Can we stand the rich paying 23% tax without deductions, exemptions or exceptions?
Can we completely un-tax the poor all year long and still pay for everything?
Educated men and women, educated economists say yes. Isn't it better to listen to them than to a lobbyist or the representative's excuses.
Isn't it time that we let our representatives know this is an immoral way to fund government?
Isn't it an immoral way to treat every America as if we are the advesary in our relationship with our representative government?
Do the right thing, go to http://www.fairtax.org
Find out how your representative stands, go to http://www.fairtaxvolunteer.org/scorecards/index.html
Regards,
Regards,
Grumpy Old Man
posted by Old Democrat at 8:45 PM
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