- Capitalism and Alternatives -

corporate welfare is wrong, yes

Posted by: Gee on March 23, 1999 at 13:40:32:

In Reply to: Pseudo-populism posted by Quincunx on March 23, 1999 at 11:12:12:

: Qx: If they are please provide evidence. Not that I doubt you on this one but evidence should be provided. Keep in mind that if taxes are going up then the source of that taxation is most likely middle to lower income people . Namely the working class. In my view, corporations should be cut off of corporate welfare. Now is that an illusion?

I'll give one example ; At its start in 1935, the Old Age and Survivors Insurance tax had a rate of 2% on only the first $3,500 of income -- with 1% paid by the employer and a 1% payroll deduction. That gave rise to the term "payroll tax." The payroll tax was increased 13 times in the course of 60 years. And the amount of income subject to the tax, often called the earnings base, has notched up 26 times.

Right now, payroll taxes -- which today include Social Security, disability and Medicare -- total 15.3% on the first $65,400 of income, with the 2.9% Medicare tax applied to all income with no cap. Fully 71% of American workers pay more in payroll taxes than in income taxes.

Sales tax and corporate tax has also risen.

And I absolutely agree that corporate welfare is wrong. Its simply protectionism, stops more able competitors entering the market and reduces quality and choice and buying power of the very people it purports to 'help'

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