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Friday, February 17, 2012

Stop Double Taxation of My Wages

The taxes on corporate dividends should not be raised because of double taxation. The profit of the corporation was taxed, and then when the corporation pays dividends to shareholders it is taxed again! Oh the greedy, cruel, unfair IRS. However this is true for every dollar that moves. My wages were taxed as profit before the company wrote my paycheck, more double taxation! Furthermore the income received by the company was taxed at that exchange, now we have triple taxation! This continues all the way back to the original creation of that specific dollar. Now we have infinite taxation! This is how the tax system works in all economies, every since taxation was first discovered by governments.
The corporate lobbyists are busy making this double taxation argument in Washington and on any cable show available. Fox business channel has made it a jihad with continuous reporting about double taxation. Why are they not fighting against the double taxation of my wages or social security? This argument adds the tax rates together; corporate income tax of 35% plus dividend tax rate of 15% equals 50% taxation. Using this same mathematical logic the tax rate on my wages is well over 1,000%! Those who understand the math of percentages will notice that this is really bad math, but it does make for a good strong emotional argument.
I want to see a campaign to stop double taxation on wages for the exact same reason we want to stop double taxation of dividends and capital gains. The Laffer curve theory presented by Jude Wanniski (a writer for The Wall Street Journal) clearly proves that a lower tax rate generates greater tax income for the government. Certainly if we reduce taxes to zero the government will have an infinite amount of money, everybody wins, so stop taxes on my wages.

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