Letter to the editor: Taxes and loopholes
To the editor:
The mantra “Everyone should pay their fair share in taxes” sounds good and plays well in the media, but there is a problem. Huge corporations hire platoons of lawyers and tax experts to find legal loopholes, authorized by Congress, in the tax laws that permit the corporations, wealthy CEOs and other top management to legally avoid paying taxes. Raising the tax rate without closing the loopholes does nothing to make “everyone pay their fair share” as the huge corporations will use the same loopholes to avoid taxation in the future.
Taxes will go up on the middle group of businesses and people who make enough to trigger the new tax rates but do not have access to high-priced tax experts, and to consumers, as prices go up to “pass along” the new tax rate. The middle will lose money, the consumers will pay more, and the huge corporations will reap a windfall of increased profits while continuing to pay little or no taxes.
Without closing the congressionally authorized loopholes in the tax laws, increasing the tax rate will not make everyone “pay their fair share.” So the mantra of making everyone pay their fair share is actually the president ranting against Congress and Congress ranting against itself. Congress caused the problem, and only Congress can fix it. The mantra plays well, sounds good, but unless the loopholes in the tax laws are closed, it only further benefits the huge corporations and the very wealthy and means more taxes for the middle earners and increased prices to consumers.