This page was last updated on November 1, 2012.
Saving programs; Jerry Miskulin; Beaver County Times; November 1, 2012.
I encourage you to review Mr. Miskulin’s body of work in the archives. Mr. Miskulin has written at least 85 letters since 2004 (I didn’t critique all of them.). Most (all?) are illogical and full of falsehoods (not just wrong).
Mr. Miskulin expressed displeasure with the tea parties (here and here), proclaimed
Below is a detailed critique of the subject letter.
“I would like to offer my own plan to save Social Security, Medicare and Medicaid.
“On all of the corporations in the United States, the federal government should be given 20 percent of common stock and 20 percent of preferred stock. This 20 percent stake represents an increase in the amount of taxes corporations pay, for everyone knows they pay little or no taxes.”
[RWC] If you want to tank our country/economy and see firsthand why we have the Second Amendment, announce the federal government will confiscate 20% of business ownership. I think Mr. Miskulin should lead by example and sign over to the feds 20% control of his property and income.
“Corporations … pay little or no taxes?” As I’ve asked before, does Mr. Miskulin simply make this stuff up, or is there some lefty clearinghouse for this nonsense? Based on Obama administration data, federal corporate income tax revenue made up 14.2% ($181.1 billion) of total income tax revenue in 2011. In 2006 and 2007, the two years immediately preceding the recession, those figures were 25.3% ($353.9 billion) and 24.1% ($370.2 billion), respectively. The reduced post-2007 revenue is the result of reduced corporate profit.
As a reminder, corporation income taxes are double taxation. That is, the government taxes a corporation’s taxable income and then taxes the dividends (after-tax profits) shareholders [including pension plans, IRAs, and 401(k)s] receive. Business taxes are a scheme to hide true taxation from the ultimate taxpayers, you and me. In some cases, businesses are prohibited by law from itemizing taxes on their invoices. You see, businesses - like government - don’t have any money; it all belongs to the owner(s). One way or another, business taxes are paid by individuals - customers, employees, and owners. According to the Tax Foundation, the average U.S. taxpayer worked eight days in 2002 to pay federal income taxes levied on corporations. In addition, we worked a fraction of a day to pay other business taxes. Business taxes are approximately seven percent of our total personal tax burden. That is, seven out of 100 tax dollars we pay are business taxes. Unfortunately, a lot of people like Mr. Miskulin don’t know this fact or choose to ignore it.
“Combined with an increase in taxes on wealthy individuals, we can finally make a dent in our two most vexing programs, our largest entitlement programs and the federal budget deficit.”
[RWC] The federal deficit for FY 2011 was $1.3 trillion. To eliminate the deficit via Mr. Miskulin’s plan, we’d have to jack up rates enough to more than double income-tax revenue. Does anyone believe that wouldn’t kill our economy?
“Failure to act on these two issues is more a lack of will than anything else. This program does not tax anyone for the 20 percent stake in our corporations on the front end, and taxing wealthy people who made out like bandits during trickle-down economics seems only logical.”
[RWC] The feds skimming 20% of a business’ profit “does not tax anyone?” What happens if 20% doesn’t generate “enough” revenue? Keep jacking up the confiscation?
“For too long the federal government has been the whipping boy for everything that’s wrong in America. For me, everything starts at the top or all our fortunes are going to drop.”
[RWC] ???
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