Wandering in Liberty

Monday, January 23, 2006

The results of our tax system.

Neal Boortz made some great points in response to Ford's announced need to cut up to 30,000 jobs in the next six years. Between the crippling union agreements and the United States punitive tax structure, american manufacturers are at a severe disadvantage. Sure a big part of the problem was due to overemphasis on SUV production. In this strong economy, if Ford were free of corporate tax burdens and were free to reorganize for efficiency without regard for what the union wants, they would be thriving and providing more jobs than ever.

Key Points

Corporations don't really pay taxes, they collect them. Taxes are a cost of business that is reflected in the end products price. This then makes that product less competitive in the world market. To say "lets just raise the taxes on corporations" is to say "lets just raise the price of America's products."

The UAW is not the employer. Loyalty to a union instead of a company will not generate the most rewards. Sure, collective bargaining has it's place, but when you continually protect the unproductive, while demanding high benefits and pay based on union membership...it hurts that synergy. Less wealth is created, thus less survivability.

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