In my last blog post, I wrote how the nation’s economic recovery needs to start with me.
I know some of the readers of this blog will respond back that many large corporations have been able to work the political system in order to pay little or no income taxes. So you feel that the recovery should start with the corporations and then you would be willing to have the focus be on me.
I understand the negative sentiment towards Wall Street right now. I’m an entrepreneur and my company, CPA for Small Business, was created to serve entrepreneurs and small businesses. I know firsthand that entrepreneurs pay their fair-share in self-employment and income taxes. Most entrepreneurs don’t have the luxury of lobbyist, tax breaks, and a department of tax attorneys who enable us to pay minimal tax in comparison to our profits.
However, I know what will happen if corporations are required to pay more in taxes. The corporations will merely pass their increased tax cost on to the consumer, which are you and me.
I remember the last oil price spike and how during the oil spike period that “big oil” experienced record profits. Oil companies had profit margins they wanted to maintain. Ten-percent of $125/barrel is larger than ten-percent of $89/barrel. The oil companies target margin was merely added to the increased cost per barrel.
So as I said, we all have to be willing to participate in our nation’s recovery. It may be better if all of us decide up front to bear the burden of solving the deficit. Because no matter what strategy is chosen by our leaders, all of us will eventually end up participating financially.