One can't help but be concerned over the pending election. Digging dirt on one's opponent seems to be more desirable than digging for solutions to problems. Every day seems to accelerate the race to the bottom as innuendos and insults flood the news.
The latest is the attention being paid to Donald Trump not paying business taxes over 20 years ago. Once again, we find MIT Professor Gruber's comment to be back in vogue. If you recall, pertaining to Obamacare, the professor said: because of "the stupidity of the American voter," it was important for him and Democrats to hide Obamacare's true costs from the public. He went on to say, "That was really, really critical for the thing to pass". Now we have Secretary Clinton and her minions seemingly relying on that voter "stupidity" to imply that candidate Trump did something nefarious to avoid paying taxes that he should have.
The first thing to note is that Trump, as a business, has paid lots of taxes. His company has paid millions to match the Social Security and Medicare contributions made by his thousands of employees. He also paid millions in property and real estate taxes. In some states, such as New York, he paid school taxes, and county and city taxes, etc.
The next thing to note is that each of us pays taxes based on our "net income," the amount that remains after we subtract authorized deductions from our gross income. A business is no different, as the amount of income that is taxable is what remains after expenses (wages and benefits paid, the cost of goods purchased to make the products to be sold, depreciation on capital assets, etc.) are deducted, thereby arriving at "net income." Obviously, if the total of legitimate expenses exceeds the amount of income, the company has a net loss. And, just as individuals don't pay federal tax if their legitimate deductions are greater than their gross income, neither does a business.
In the case of businesses, a company is allowed to "carry forward" part of their loss to a subsequent year(s) and be deducted from that year's earnings. This provision allows the company the opportunity to earn back the money it lost. If that carry forward provision were not in the tax code, it is likely that the business would file for bankruptcy and close shop. Such an action would cause the employees to lose their jobs and the investors (perhaps some of them managing people's 401K retirement plans) to suffer a total loss. By allowing a company to carry forward the remaining portion of the loss, gives it a chance to recover its losses and its people to retain their livelihood. Just imagine how many new companies would never survive their first year if they couldn't carry forward losses incurred in their start-up. Bottom line . . . the carry forward provision is a logical and fair thing, as the individual or company winds up paying the appropriate tax on what they have earned, not what they lost.
What Secretary Clinton and her minions are promoting is the inference that candidate Trump did something nefarious to avoid paying his "fair share." That is not the case, he acted within the law and the rules and did essentially what every citizen and business does . . . take legitimate deductions from their gross income to arrive at the amount of income that is taxable.
The Clinton campaign will continue to hype this issue, as a way of deflecting attention away from issues such as Benghazi and the tragic loss of four American lives, her use of a private email server and the issues surrounding her failure to protect classified and sensitive government records, and her history of often testifying under oath by repeatedly answering, "I don't recall" to probing questions. The personal attacks against candidate Trump by Secretary Clinton and her team are their effort to make him the issue so they can avoid having her history of diplomatic failures, her gross misconduct in the handling of private government records, and her convenient memory lapses, from being brought to the public's attention.
As a side issue, it appears that former President Clinton underwent a moment of truth and called Obamacare "crazy," while highlighting a number of its failing issues. The next day, Secretary Clinton was in a tough spot trying to find a way to not lose her support from President Obama and to keep peace in her family. She acknowledged that there are things that need to be fixed, changed and replaced.
The acknowledgement of that program's failure should act as an alert to all citizens that it is the fervent desire of politicians on the left to use this failure to promote a "single payer system," Single payer does not sound intimidating or controlling but in reality, it means bringing all health care under government control . . . from choices to decisions on what services you will get and when you will get them.
Medicare has $36 trillion in unfunded liabilities, Social Security $8 trillion, the government-run VA system is riddled with incompetent bureaucratic management, and Obamacare is a failure. The government hasn't earned the right to commandeer what is the finest health care system in the world.
Please, don't let it happen.
- Category: Letters
- Hits: 348