By Paulette Garin
Paul Ryan’s recent editorial, We need to move from frustration to revitalization (May 6, 2009, Kenosha News) is just another slick example of how our Congressman supports his corporate cronies while disguising himself as a champion for his constituents here in Wisconsin’s First Congressional District. He proposes eliminating the corporate income tax and replacing it with a business consumption tax. This does not eliminate the tax burden, but simply shifts the tax burden to the end user – the consumer who will pay higher prices. The business will include the consumption tax in its Cost of Goods Sold, increase its sales price, and pay no tax on the profit/net income derived.
Good for Business, Bad for the Average Working American.
While we may have one of the highest corporate tax rates in the world, the effective rate (the rate at which the business actually pays) is one of the lowest. How so? The generous loopholes and unfair tax breaks a corporation has access to that the Average Working American does not. Corporate America does not pay its “fair share” of taxes now. Ryan wants to eliminate the corporate tax before the Obama Administration eliminates the tax loopholes.
Ryan blames the Obama Administration as continuing to advance the dangerous precedent set by the Bush Administration. Wait a minute. Didn’t our Congressman support the Bush Administration 94% of the time with his extreme conservative voting record for the past decade? Ryan is correct when he says, “Crony capitalism has never looked uglier and the consequences have never been more painful,” except he fails to acknowledge he is part of that problem and not the solution.