Re: Final Challenge to Socialists

James Rogers (
Sun, 13 Dec 1998 20:08:26 -0800

At 08:33 PM 12/13/98 -0500, you wrote:
>>Also, governments can exist just fine with very little or no taxation.
>> Look at the US up until 1913 or so. Hell, look at the US up until
>>the early 60's. I think families paid less than 10% of their income
>>in taxes up until the Democrats decided to create a Welfare State.
>absolutely not! the reason working families pay so much is because the
>share of the tax burden funded by corporations has decreased from around
>40% to 10%. they've bought off enough politicians over the years to exempt
>themselves from countless taxes. so while the standard of living for the
>average American has stagnated, and decreased in many instances, American
>corporations are pulling in record profits and are receiving more in
>government welfare than individuals. and how did this happen? a privileged
>few running unchecked in a ruthless battle to the top, stepping all over
>the American public in the process.

You are confused. What do you know of corporate taxation? The corporations are taxed (on revenue) at about the same rate as wealthy individuals, which is to say they are taxed a lot more than most individuals. And corporations have to deal with double taxation; when profits are disbursed to shareholders they are taxed again at the shareholders income tax rate. Nevermind the other miscellaneous taxes that corporations have to pay that most people aren't even aware of.

The currently high levels of corporate taxation and double taxation issues are the motivating factors behind the trend towards alternative forms of value distribution. Even then, taxes paid are generally higher than what most individuals pay. Using traditional channels of distributing profit to shareholders (such as dividends), the taxation at all levels is often around 70-80%.

As for corporate welfare, the vast majority of corporations receive no such aid in any form.

It galls me every time I see the "evil corporations rule the world with impunity" meme that seems to cross this list semi-regularly. This dogma would never be espoused by individuals who actually have first hand knowledge of corporate structures and administration, but it sure seems to be popular with the less experienced in this area.

-James Rogers