Wednesday, August 27, 2014

Sen. Sanders' (VT) Impractical Solutions

Open Email to Sen. Bernie Sanders (VT):

Dear Sen. Sanders,
Thank you for sending me a copy of your recent news letter. There are two issues on which I would like to take exception'
You said that Americans overwhelmingly want the federal government to play a strong role in creating decent-paying jobs by rebuilding our crumbling roads, bridges, railroads, water systems and other projects.
I believe this is only partially true. I agree completely that Americans want decent-paying jobs, but your solution of building infrastructure is not practical. What Americans want are jobs which are based on goods and services desired by a consuming public willing to put up their dollars. Conversely, in infrastructure development, where does the money come from? It comes from either higher taxes on corporations and the general public, or an increase in our $17 trillion debt. The obvious best solution to the job problem is for government to start reducing inhibitions to cooperate development.
You also said that Burger King announced on Tuesday that it plans to buy a Canadian coffee-and-doughnuts chain and move its headquarters from Miami to Canada to avoid U.S. corporate taxes. Burger King’s choice to move to Canada is a part of the continued assault by corporate America against the needs of our country’s working families.
This fits in with the previous point of jobs in infrastructure. Corporate and private company jobs pay for themselves. Whether Burger King has its tax base in Canada or the US has no effect on US jobs. In addition, a move to save federal taxes is an advantage to the general US public, much of which is owned by the US public. A decrease in Burger King's corporate taxes, makes higher dividends available to the US public owners. Those dividends are taxed, but the likelihood is that the move to a lower corporate tax base will decrease the total revenue, which is apparently what you detest. Let me remind you that by taxing both corporations and dividend receivers, you have been taking two bites of the apple before we get a chance for our bite.

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