Tom Schroeder – 6/16/05

This page was last updated on June 16, 2005.

We aren’t indentured servants; Tom Schroeder; Beaver County Times; June 16, 2005.

I agree with much of the sentiment in Mr. Schroeder’s letter, though I haven’t researched the facts he states.

Below is a detailed critique of the subject letter.

“Add all of your taxes from last year. You will find the average family pays nearly 60 percent of their income to payroll, income (federal/state/local), sales, property, school, gasoline, federal excise and endless hidden taxes (phone, electric, gas, etc.).

“The sad fact is we spend more on taxes than food, clothing, health care, transportation and housing combined.

“How have representatives from either party helped lately?

· Higher gasoline, property, school, state income and hidden taxes.

· Unrestrained government spending despite escalating debt financed by foreign nations.

· Misuse of Social Security funds.

· State House Bill 51 increasing developer profits at taxpayer expense.

· Tax subsidies to corporations moving jobs overseas despite unprecedented losses of meaningful U.S. jobs.

[RWC] This claim is incorrect.

To start with, these laws have been on the books for decades. President Bush did not enact them.

With that behind us, let’s look at the tax provision in question. The U.S. tax rate tends to be higher than those of foreign countries and the United States collects taxes on income earned in foreign countries. The reason for the tax code provision is to help U.S. companies remain competitive when doing business in foreign countries. The provision doesn’t tax business income earned in foreign countries until the income is brought back to the United States. Without this provision, U.S. companies would be at a competitive disadvantage because they would have to pay full taxes to both the foreign country and the United States. The provision is not – as depicted by Democrats and Mr. Schroeder – a “tax subsidy to corporations moving jobs overseas.”

· Representatives influenced by family vacations, gifts and contributions from special and foreign interests.

· More ‘free trade’ agreements despite 28 years of U.S. trade deficits and the fact that we remain the only nation without foreign-trade protection laws.

· Phony property tax relief that raises taxes and benefits legislators and special interests without providing meaningful tax relief.

“The cost of government is oppressive and financial transgressions widespread, but ‘the people’ submissively pay the bill.

“Government control, arrogance and corruption are alarming, but ‘the people’ obediently elect party candidates repeating meaningless campaign promises.

“Politics does not excuse politicians, special and foreign interests stuffing their pockets at taxpayer expense.

“Replace your apathy with relentless determination to achieve positive government reforms.

“Replace self-serving politicians with representatives who refuse to sell out to special, foreign, party and personal interests, and hold them accountable for transgressions.

“Replace ‘free trade’ agreements with ‘fair trade’ laws to end decades of U.S. trade deficits and job loss.”

[RWC] I believe in fair trade, but as used by liberals, “fair trade” means protectionism and protectionism always backfires. I don’t claim Mr. Schroeder is a liberal, but it seems clear between this sentence and the penultimate bullet point above that Mr. Schroeder believes trade protectionism works.

“Replace oppressive taxes with financial accountability at all levels of government to encourage economic growth and personal savings.

“Politicians from both parties have forgotten whom they work for. ‘The people’ are not indentured servants of ‘the government.’

“Why accept this?”