Op-ed views and opinions expressed are solely those of the author and do not necessarily represent the views of BizPac Review.
Some credible think tank needs to evaluate the way Hillary Clinton chooses decisions. Do her “solutions” spring from “progressive” thinking, or are there fatal flaws in her judgment?
Clinton’s answer to most every problem is more taxes. More government. Raiding the purses of the wealthy. Punishment or penalties for those who disagree. That’s how her mind works.
Here’s a case on point: Clinton wants an “exit tax” on businesses that move their headquarters to other countries. Instead of solving the real problem—a smothering U.S. tax code that forces many companies to move overseas—Clinton wants a penalty tax. In her lust for more tax money to fulfill her progressive schemes, it never occurs to her that she is pushing a sure-fire way to kill growth.
The United States has the highest corporate income tax of any developed nation on earth. Also, America taxes the world-wide income of our businesses at one of the highest rates in the world, after the corporation may have already paid taxes to the nation in which it is doing business. The U.S. tax code is an onerous incentive for U.S. firms to migrate to other countries.
Capital flees to where it is welcome. America’s oppressive tax mentality is why businesses are leaving. That, and the fact that for businesses to compete in the global markets while paying a 35% corporate income tax, they must reduce their costs. If companies don’t run a profit, their stocks became devalued. Disaster follows, as investors bail out. So, America’s high tax rate encourages revenue and cash to be kept offshore, meaning reduced revenue to the U.S. Treasury. Clinton wants to get her government claws on that cash.
She should be calling for a plan that makes it desirable for companies to bring their profits home. But Clinton isn’t really interested in solving this problem of corporate inversions. No, she needs a target; her approach to this and several other economic problems is based on her strategy to 1) maximize the political power of progressives, and 2) spin disingenuous tall tales that appeal to her voting base.
A high corporate tax rate gives Clinton and her ilk of politicians additional power. The bonus is she gets to paint businesses that move operations abroad as evil profit-mongers, and their CEOs as bonus-hungry vultures. She never mentions that confiscating company earnings to pay Hillary-taxes will mean unemployment or lower wages for workers, lower dividend income for retirees and Americans who are shareholders, and low-grade growth caused by reduced reinvestment of profits back into the business. And Clinton no doubt smiles at the notion that unemployed former employees will be reliant on government handouts, therefore more persuaded to vote for progressive politicians. She relishes the thought that corporate earnings can be morphed into government taxes that promote “social justice”, a system that gives a share of what someone else has worked for to a person who hasn’t worked for it, as Thomas Sowell would say.
Let’s call Clinton what she is: a cunning politician bent on maximizing her own political power, and faking anger to craft a superficial narrative to grab more votes.
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