Originally Posted By: cchase
Originally Posted By: ShiningArcanine
The only difference is that there is a ocean between New York and Germany while there is a mountain range between New York and Ohio. Both are foreign cars as far as I am concerned and there is no reason for anyone in New York to think otherwise.
The difference is that the company located in Ohio pays taxes to the same federal government that you pay taxes to, and as a result you share, albeit indirectly, in the profits of that business. In addition, this country is united politically, financially, economically, and culturally.
If you think that Ohio is a foreign nation, there's no real reasoning with you.
There is no way that I benefit from the fact that any company pays taxes. I believe President Reagan once described corporate taxes as an attempt to have companies collect taxes for the federal government. As far as the mathematics of the situation are concerned, this describes the situation perfectly, as the taxes levied against them translate into hidden sales and export taxes. It is impossible for anything else to be the case.
Sales taxes hurt less wealthy individuals at the expense of those more wealthy and export taxes ruin foreign competitiveness and impact sales overseas, pushing companies to make sacrifices to remain competitive, regardless of how good they can be in terms of making their products. These sacrifices can involve jobs, salaries, quality and other things.
Anyway, some wealthy person like Al Gore might benefit from the fact that there are corporate taxes on these companies, as it means a lower income tax for him, where the difference between the tax rates more than makes up for the additional cost, but as for me and my relatives, the difference between the tax rates does not make up for the higher costs, so we lose while he wins. It is not very fair, but that is how things are.
And yes, Ohio is a foreign nation. So is every other state in the union. That is why they call it the union.