Many people in the United States (roughly 15 million) are desperate for meaningful work at a reasonable wage. Congress worked on meaningless issues in 2011, 2012 and again, so far in 2013.entirely neglecting the most important issue to Americans; The creation of jobs. The goal of creating jobs MUST be the top priority for Congress. This should remain the top goal until the U.S is again financially strong and prosperous. Jobs create consumers. Consumers purchase additional items, thereby creating additional demand that requires additional workers to create additional supply to satisfy this additional demand. Consumers are the most important element in an economically prosperous and innovative society.
Business in general is absolutely helpless during depressed economic times. This has been conclusively demonstrated over and over throughout history. Corporations are motivated solely by profit. Business will always accept additional tax cuts, however, tax cuts do not generate additional consumer demand to allow the hiring of new employees. The Great Depression of the 1930's and our current Great Recession (which are very similar in economic terms) have proven beyond doubt the helplessness of business to cope with an economically depressed consumer base.
Republican leadership has nurtured the misconception that large corporations and very wealthy individuals are the 'job creators', therefore, they should pay little or no federal taxes to support our nation's economy (this also applies to taxes at the state and local level). This fallacy has become ingrained in the American psyche. Business sectors that add the most to job creation and the overall economic health of the nation should receive the greatest benefit of lowered taxes and tax incentives. This system should not and must not be based on the ability of paying millions of dollars to unfairly lobby Congress and obtain unneeded or undeserved 'special tax treatment'
The American people must have the cooperation of Republican leadership in Congress in order to rebuild this country. The Republican leadership constantly talks about 'uncertainty in business'. This concept does not exist. Business simply expands or contracts during high or low consumer demand by reducing or adding work force, which in turn, tends to compound businesses difficulties and reduces bottom line profits. The issue that must be addressed is 'uncertainty of consumers'. Address this problem (through addition of well paying jobs) and the rest will fall into place. Government is the last line of defense. The business community cannot be counted on to lift the nation out of severe economic depression. Which came first, the chicken or the egg? Or. a better way to state this; Which came first, business or the consumer?
Let's look at corporations in general. GE paid no taxes; Goldman Sachs paid $14 million last year. The GAO reported in 2008 that “two out of every three United States corporations paid no federal income taxes from 1998 through 2005.” Companies have become all too astute at paying for loopholes which allow them to shift profits abroad, or move their gains (on paper) to foreign low-tax/no-tax nations.
Let's look at the overall tax payments corporations have made. As the figures below show, the change in corporate taxes — not merely rates, but what they actually paid — over the past half century is astounding. Large corporations reap tremendous benefit through lobbying the federal government, however, they tend to provide the least benefit to American society by way of revenue and job creation (large corporations currently generate 20% to 25% of all new jobs). Republican leadership has maintained for more than 30 years that giving more entitlements and tax breaks to large corporations will increase prosperity and create jobs. The results of this '30 year failed experiment' indicates the exact opposite.
Corporate profits have not been higher than current levels since 1955 (World War II post-war boom). Large corporate taxes have never been lower. Large corporate subsidies and incentives through loopholes and special tax considerations have never been higher. Corporations are now 'holding' over two trillion dollars in profits. That being said, the current rate of economic contribution to the nation's economic health and job creation in the U.S. by large corporations has not been lower since The Great Depression of the 1930's.
Corporate Taxes as a Percentage of Federal Revenue
2010 . . . 8.9%
Corporate Taxes as a Percentage of GDP
2010 . . . 1.3%
Individual Income/Payrolls as a Percentage of Federal Revenue
2010 . . . 81.5%
Anyone who is serious about closing the US deficit should consider the changes in what corporations pay in taxes and the rise of the deficit (which has directly caused the United State's ever increasing national debt).
President Obama has worked diligently and tirelessly to reduce the tax liability and meaningless government regulations for small business. Why is this important? The short answer would be, small businesses generate the majority of new jobs (currently 75%) in the U.S. Economy. Individual entrepreneurs and small businesses are the economic dynamo of the U.S. Economy.
What is a small business? The office of the advocate general defines a small business as an independent business that has fewer than 500 employees. How important are small businesses to the U.S. Economy?
- Represent 99.7% of all employer firms.
- Employ just over half of all private sector employees.
- Pay 44% of total U.S. Private payrolls,
- Generated 64% of net new jobs from 1992 to 2007 (current figure is 75% of all new job creation).
- Create more than half of the non-farm private gross domestic product (GDP).
- Hire 40% of all high-tech workers (such as scientists, engineers, and computer programmers).
- Are 52% home-based and 2% franchises.
- Made up 97.3 percent of all identified exporters and produced 30.2% of the known export value in FY 2007.
- Produce 13 times more patents per employee than large patenting firms Patents developed by small firms are twice as likely as large firm patents to be among the 1% most cited.
Now is the time to solidly restructure America to new dynamics that will place the U.S back on firm financial footing. Individuals, small businesses and small banks must be the entities that receive 'special' tax treatment, incentives and subsidies. The economy should be rebuilt and then, be maintained from the bottom up.
I have signed this petition to fully support President Obama's commitment to rebuild the middle-class in America. Large corporations, Wall Street and large banks should pay their fair share of federal, state and local taxes. Entirely eliminate tax breaks and incentives that encourage the export of American jobs overseas. Eliminate subsidies to large corporations and sectors of the economy that no longer require them. Individuals, small businesses and small banks should receive tax breaks and incentives that will encourage job growth and expand our nation's economy. Small banks should receive adequate backing, support and incentives to allow loans to small businesses (on the local level) to encourage expansion and the hiring of new employees. Small businesses should receive tax breaks for hiring new employees and to encourage planned and timely expansion. Individuals, small businesses and small banks tend to pour money back into their local economy.
The federal government should work with state and local governments to form local panels to include small business in a meaningful way to reduce redundant or misapplied government regulations (government in general, should be made more 'user friendly' for small business). State and local regulations (not federal regulations) are the biggest drain on business and cause the most uncertainty to small businesses. President Obama has insisted from the beginning that 'we must rebuild our nation from the ground up'. This 're-engineering', will take time, however, in the end, we may reduce the constant 'boom-bust' cycles that have plagued the U.S economy for many decades and replace it with a firm base to ensure a strong national economy and economic expansion far into the future. It's time to place these high-minded principles into practice.
Mason Colbert started this petition with a single signature, and now has 3 supporters. Start a petition today to change something you care about.