Sunday, June 26, 2011

Is There a Solution?

Recently someone asked me if I thought Ronald Reagan was a good president? And I answered them somewhat sarcastically that, after he fulfilled his promises to the wealthy and the deficit soared out of control, he did a splendid job. He did eliminate long and short-term capital gains taxes- created one rate to hinder tax shelters- and did away with investment credits. Ironically, the loopholes he plugged did, to a limited degree, create jobs and opportunity.

Today we have an entirely different situation. The tax laws that are designed to give corporations and the super rich incentives to invest in America and create jobs, have been co-opted by a generation of self-interested derivative thinkers to the point where it has become anti-tax stupification.

Today US corporations that were born here, and sustained by our country are rewarded by the tax system for investing abroad and, at the same time, closing American facilities and firing American workers. Corporate leaders get capital gains on stock acquired by them in compensation plans, again using tax laws that are designed to create jobs and stimulate the economy, without creating any jobs, except for an au pair or maid.

The real tragedy is that some who recently assumed positions of power, as well as many who aspire to positions of power, have little understanding about what's going on; and liken what's happening now to what was happening during the Reagan era.

If right wing Republicans were seriously interested in job creation, rather than having savings of the rich "trickle down" into contributions for their campaigns and attack ads designed to eliminate Democrats and moderate Republicans from the American political scene, they would require every corporation to disclosed what percentage of their stock float is actually being invested as "capital" in building factories and research facilities, buying equipment and training workers in the US.

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