Yes, The Follicles Are Real

Tax Breaks for Who Now?

In Politics on February 15, 2012 at 6:08 pm

A topic came up recently in our family about tax breaks for the wealthy. I know this topic has not only been on my mind for a while but most of the country so I thought I’d take a crack at tackling the issue.

A major issue is that a lot or most corporations are receiving tax breaks to help encourage capitalism and competition but it actually severely hurts competition. With a lot of companies receiving a bailout in 2008, and then continuing to give CEO’s and executives bonuses, it got a lot of people thinking about what the federal government was doing about regulating these companies.

It led to an argument in our family about whose fault this was, the federal government for not maintaining regulations on the companies or the companies for giving the bailout money to executives. I stood my ground against the federal government for not having the foresight to see that these companies obviously are not morally mature enough to understand what the bailout entailed. It’s like a child spending all of their money and you give them a couple of dollars to help out and hope that they’ll do the right thing with it. You KNOW that child is not responsible with money so how could you trust them? My family blamed the corporations for being frivolous with the bailout money and so we came to an impasse.

I’ve started to develop a system for corporations receiving tax breaks and this is my preliminary draft.

Offer huge tax incentives (tax percentage is based on percentage of production switched from another country to the U.S. So if 40% of your production is done in China and 60% is done in the U.S. a company may change that to now 20% is done in China and 80% is done in the U.S. and that 20% change would be what the tax break would apply to. Therefore, certain incentives only go to companies already doing overseas production and another set of incentives would go to companies that do NOT outsource production. These second set of tax breaks would not apply to companies in the first set and are now asking for incentives to not do it again because they cannot receive the first set of tax breaks again and would not receive the second set ever. Companies in the second set of tax breaks cannot accept the breaks and then outsource production in order to receive the first set of tax breaks for bringing them back.) to companies that do not outsource jobs, in turn, help companies lower the cost of making products so that more American’s will buy American products.

 

Let me know if you find any issues because I’m positive there are plenty of loopholes in here.

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