Donald Trump is out of the Presidential race (maybe—maybe not), but he did raise a major issue: China and jobs going overseas. I would like to introduce an idea that deserves discussion because this problem warrants immediate attention with a practical solution. If anyone has a better solution, please contact me.
Don’t jump to conclusions. I have not lost my conservative mind. But, I have a plan to “tax the rich,” especially the rich enemies of freedom.
I am a big fan of the fair tax, but until more minds are molded to agree, I have a “tax the rich” plan that I think conservatives—who normally hate taxes—will love. So, hear me out.
Donald Trump has said that China and other nations, who are taking advantage of our “free trade” philosophy, should pay taxes on their imports. Now, I agree, but what is the best way to accomplish this? China is “getting rich” off of America, but pays little to no taxes. It is past time for them to pay their fair share. Saudi Arabia and other oil producing countries have gotten filthy rich off of America, and we spend trillions of dollars protecting them—with hardly a “thank you, America.” Let these nations pay a tax—say one bullet for one barrel of oil or one bushel of grain for one barrel of oil. Now, that is a tax that conservatives could learn to love.
“The Donald” has been Trump—eting his ideas. Now, let me tweak them just a little. He has been talking about how that we need to reduce corporate taxes because our corporate tax rates are about the highest in the world. In addition, we have corporations like GE who pay little or no taxes, yet they received billions in bailout money.[i] So, is there a way to make these corporate tax cheats pay without issuing thousands of more “progressive” tax codes?
Liberals love a progressive rate where the more that some corporation makes then the more their tax rates are increased. (It’s so progressive, in a backward-sort-of-way.) However, millions of dollars spent by lobbyists in Washington D.C. have established so many tax friendly loopholes for “the corporate rich” that over 75,000 pages are needed to explain (hide) them.[ii]
What a scam! I say…tax these rich, fat piglets, and here is how.
First, family farms and mom-and-pop businesses with gross—not net—incomes less than $10 million dollars per year should have a corporate tax rate of 2.5%. This low tax rate will help give them a competitive edge with super large corporations. Now, a family owned business can compete with Wal-Mart.
Second, corporations that make a gross income from $10 million to $50 million per year should be taxed at a 5% rate with no loopholes and no subsidies.
Third, corporations that make a gross income of $50 million to $100 million per year should be taxed at a 7.5% rate with no loopholes and no subsidies.
Fourth, corporations that make a gross income of $100 million to $1 billion per year should be taxes at a 10% rate with no loopholes and no subsidies.
Fifth, corporations that make a gross income over $1 billion per year should be taxes at a 12.5% rate with no loopholes and no subsidies.
(Note: these percentages probably need adjusting especially since companies will taxed on gross income and not net; however, the idea is to create a tax table without thousands of loopholes, yet with tax rates that are low.)
Now, these rates are light years lower than the countries with the highest corporate taxes.[iii] The objective is to make America’s corporate rates the lowest on earth, which would encourage investment and growth in America.
However, a couple of caveats must be considered to each of the above levels. Many businesses and industries have moved overseas simply because it is cheaper to make the goods over there and ship them back home. How dumb is that! (Smart for industry…dumb for America.)
First, in order to bring manufacturing and employment back to America, an added tax should be put on overseas products. For every percent of product that is shipped from overseas or employment that is shipped overseas, then a ½ percent tax should be added to their corporate tax rates—even the smallest businesses. (No smoke and mirrors definitions either—such as: if they make one button here, then they can say the whole product was made in America.)
Now, small businesses in the 2.5 % tax bracket would pay a ½ percent tax for every percent that they import from overseas or employ overseas. If a small family business imported 50% of their products into the United States, then they would pay an additional 25% tax to their corporate 2.5% rate for a total of a 27.5 % total corporate tax. If a small business imported or employed 100% overseas, then they would pay an addition 50% tax to their 2.5 %.[iv] I love taxing the rich—especially the rich liberals whose philosophy is America last!
The purpose is simple: to encourage businesses at every level to use American made products and to create more jobs in America.
This simple idea hits hard those corporations like GE, which moved the bulk of their business overseas to reduce costs and to avoid taxes. Let them set up their headquarters anywhere in the world. But, if they do business here, then the same tax rates still apply. If they are a large corporation that grosses over $1 billion a year and they import or employ 100% overseas, then they will pay an additional 50% corporate tax to the 12.5 %. That is a wonderful 62.5 %. I love taxing the liberal rich…especially the filthy GE-type rich who have avoided paying taxes.
Again, the purpose is simple: to encourage these corporations to set up shops and factories here. To encourage them to employ more Americans—I am so tired of talking to someone from India when I have a tech problem. I live in a town whose “family business” moved 90% of their business overseas. It is ridiculous! Thousands in this small community lost their jobs—good paying jobs. This idea alone would drive the unemployment level back below 5% in spite of the failure of Obama-nomics.
This simple idea would also work with foreign countries like China. It is their businesses that are taking advantage of America’s tax loopholes and free trade policies. Treat all businesses in all countries overseas the same way. If they import or employ 100% overseas, then they will pay an additional 50% corporate tax on top of their corporate tax by size. Don’t you just love taxing those rich commies?
Here again, we need another simple caveat. Businesses in countries with a Constitution and Bill of Rights just like ours should receive an adjusted rate—a preferred customer rate. Their rate should not be ½%, but they should receive the preferred customer rate of 1/8% for each percent that they import or employ from overseas. If they employ or import 100%, then they would pay an additional 12.5% to their corporate tax rate according to size, instead of the 50% rate.
Countries that have parliaments, free elections, freedom of religion and speech, and are friendly to the United States should receive the preferred rate of ¼%. Therefore, if they import or employ 100%, then they would pay an additional 25% to their corporate tax rate according to size, instead of the 50% rate.
Countries that have totalitarian, Islamic, or communist forms of government, but are friendly to the United States and have no nuclear weapons or programs could possibly qualify for a 1/3% tax rate with a 60% approval from Congress. If such a business imported or employed 100% overseas, then they would pay an additional 33.3% tax with their corporate tax rate according to size, instead of the 50% rate.
Corporations from countries like Venezuela or Iran whose dictators hate us will pay the full tax. I love taxing the filthy rich Marxists and Jihadists of the world. Let them support our capitalist pig society. I love it!
This idea is simple and fair to all sizes of corporations from all over the world, yet it is designed to encourage all businesses worldwide to make more products here and employ more people here. It is designed to make a level playing field where the small family businesses can compete with the largest corporations in the world—without fear of being underpriced, right out of business. It is designed to punish nations that hate us, yet love our money filling their coffers.
This idea is an America first idea. It is designed to encourage more industries to move back to the United States. I am tired of driving through ghost towns that once flourished in America, but the owners found a better business environment in some foreign country. I am tired of seeing 99.9% of the items in any store with a label that says “made in China” or “made in India” or “made anywhere but America.” The world always wants our help and handouts, but if businesses continue moving to China and elsewhere, then America will remain in economic jeopardy, even if Congress balances the budget.
This idea helps strengthen our national security. One forgotten issue is that our national security depends upon industries being located here. Our prosperity depends upon more goods being made in America. I never believed the argument of letting the third world have our “worst jobs.” Answering the phone at a call center in India is not a “worst” job—many Americans would love to have that job.
This idea is uncomplicated. It does not require 75,000 pages explaining a tax code of smoke and mirrors. In fact, if I can do the math, then it would not require million dollar tax lawyers to explain or accountants to figure. It is brilliantly simply—million dollar lobbyists, trying to get favors, hate this idea because there would be no more loopholes.
If “The Donald” knew about this plan, then I believe he might Trump-et this idea. He says that we are losing trillions of dollars to these countries and businesses overseas. He believes in taxing them. I believe in taxing them! I love taxing the “rich fat-cat commies and jihadists” of the world who actually hate us, yet make trillions off of us. If they do business here, let them pay—after all, “we the people” have to pay and pay and pay and pay some more…out the wahzoo! Sorry, Obama made me do it!
It is so simple that you would think Congress could understand it or even come up with a better idea—don’t hold your breath!
If the fair tax is ever made law (and I hope it will be), then corporate income taxes should also be eliminated for companies within the United States that make and employ 100% here. But, those companies who still import or employ outside this country should continue to pay corporate taxes at the rates described above. You like taxing those fat cat commies too—don’t you? I see that conservative smile.
Lower the taxes upon American citizens, but tax the filthy rich Marxists—worldwide. Tax the enemies who hate us. I love it when a plan comes together!
One final thought: Many might counter that taxing the rich corporations only means higher prices for Americans in the stores—the tax is only passed along. I am fully aware of that truth. However, it is time for Americans to make a choice. Do we want to continue selling China our debt while their products flood our markets? Personally, I have actually walked every aisle in Wal-Mart looking for one thing that said “made in USA.” I would have bought it no matter how much higher it was. I believe that if manufacturing is encouraged to return to America and if corporations here can get a preferred tax rate, then prices will not increase as much as some might think because of the great free enterprise system that encourages competition, which gives us the best possible products at the best possible price.
But China and many other countries have an unfair advantage because of their slave labor systems. Americans must make a hard choice. Do we give the keys to our nation’s future to them? Or do we level the playing field and return the keys to the companies and citizens of America—even if it costs more? It is past time to make the hard choices—but they are the best choices!
And the hard choice for many Americans must begin this next election cycle by simply voting all of the lying, lunatic, liberal bums out. That’s a great choice.
[ii] I tried to find information to compare import taxes among nations and ran into a maze of disinformation that only a tax lawyer could decipher.
[iv] Someone may ask: how would you tax companies who import 70% and employ 50% overseas? Simple: They would pay the larger of the two—their tax would be figured on the 70%.