| Baryonyx said:
I just told you that the corporations doesn't pay taxes, so how is americans better off? If these corporations doesn't pay taxes, the money will never come back into circulation.. You just said Americans should support it's country to become more poor... wtf? |
Many Americans buy into trickle down or Reagan or voodoo economics, a princle that has been proven a fallacy and trod out year-after-year by Republicans. It does not and has never worked, but the "job creator" myth is what has led to and bolsters the economic disparity in the USA.
To deconstruct his statement, Americans pay American companies for goods that they choose to manufacture abroad (instead of hiring Americans and giving Americans an income). American companies pay for Japanese, Chinese, Korean, Indian, etc. parts and labor to produce "American products." These American companies make their income by convincing Americans to use theirs to buy their products. They then use whatever tax sheltering, residencies, deductions, exemptions, loopholes, etc. to pay lower taxes, dollar-for-dollar, on their incomes than Americans do. While the average American has to pay their income at the rate demanded by those who control the manufacturing, the American producers lobby and create the laws. What this means is that Americans usually have to spend more than their income to meet the American standard of living, dictated by the marketing of American companies, and American companies end up with massive income that far outstrips their costs. So, while Americans have overextended their incomes, partially due to American tax codes, American companies have trillions in surplus dollars. Unlike American citizens, these companies have no need or reason to spend it, as it goes untaxed and unused. This is why wealth inequality is killing America and this is why corporations should pay higher tax rates than the average American citizen.
