Just for comparison individual tax rates average around 35%. Additionally, about 41% of government revenue comes from individual income taxes and about 40% come from payroll taxes. Corporate tax source make up about 9% of federal revenue from income taxes. This according to the Joint Committee on Taxation for fiscal year 2010.
Getting back to Obama’s speech today he did not explain why he wanted these new tax rates on corporations and small business nor did he explain just how he thinks such a move would do anything good for the US economy. What he proposed today is actually an old proposal to lower the corporate tax rate from 35% to 28%. For manufacturers the tax rate would be lowered to 25%. This comes less than a year after the government raised the top tax rate for individual to 39.6% which is also the average rate in taxes paid by many small businesses.
Although Obama did not explain his reasoning for this nor why he thinks such a move would be a sound economic idea he did say that the US tax code is currently riddled with “loopholes” and that corporations end up paying little to nothing in taxes while small businesses end up paying 35% or more. He said he wants to simplify the tax code so that loopholes are closed. He also said he wants to fix the US to stop giving incentives to ship US jobs overseas and he wants to lower tax rates on businesses that create jobs in and for America. He gave no further details on exactly what loopholes he was referring to. Ironically, during the 2012 presidential race the Obama camp came down on the Mitt Romney camp for not identifying which loopholes Romney would close.
Sadly, Obama and Company fail to understand that it is small business that drives America and it is small business that creates the MOST jobs for Americans in America. Obama’s desire to lower tax rates for corporations and raise tax rates for small business is yet one more proof that Obama is NOT a Socialist, Communist, Anarchist, or anything thing of the sort. What he is is a Fascist Corporatist and this proves it so. He does the corporate bidding and he serves the corporations. He has a history now of trying to cut the throats of small business while at the same time promoting corporatism. Continue reading