Big Fish Eat Little Fish. What Happens When There Are No More Little Fish?

Posted on December 26, 2012

22


Then the big fish turn on each other until there are no fish. That would seem to be the logical end, don’t you think? Not exactly favorable to one’s self-preservation, is it?

It seems to this humble observer that this is what big governments do. They keep eating more and more of the food supply (the economy) until there is not enough left to support them. Are big corporations playing the same stupid game? Maybe that is what Kim Strassel is suggesting in this Wall Street Journal article.

…a growing collection of CEOs and big-business lobbies have fallen in line with President Obama’s cry to raise income taxes on those making more than $250,000. To listen to these CEOs, this is the ultimate self-sacrifice. “I would pay more in taxes” in a budget deal, explained the noble Honeywell CEO Dave Cote, but it would be worth it to “put the economy on a sounder footing.”

By “”put the economy on a sounder footing”, what Mr. Cote is saying is: “If my company makes more money by paying less taxes, the company can pay me more and I won’t mind paying higher taxes.” Ms. Strassel seems to support might interpretation when she says:

Put another way, the Roundtable saw an opportunity to make the one million small American business owners who pay individual income taxes shoulder a big rate hike (up to 39.6%, from 35%) while radically lightening the tax load for the Roundtable’s own corporate behemoths (to 28% from 35%). Any corporate tax reform hinges on closing “loopholes” to pay for a lower corporate rate. Small business owners would lose tax perks along with everyone else—meaning they would pay even more—but they would not benefit from lower corporate rates.

What is good for the goose is apparently not good for the gander”

Some CEOs have taken to spinning bizarre economic logic on behalf of their position. Witness FedEx CEO Fred Smith, who recently explained that it is “mythology” that raising taxes on small business kills jobs. But it was true, he said, that lowering corporate rates for big business will help create jobs. Track that logic.

So, what is a conservative lover of small government and free market capitalism to do when he can’t trust his government and can’t trust the so-called bastions of free enterprise?

Walt Kelly’s comicstrip character, Pogo, once said: “We have net the enemy and he is us.” Pogo was profound on many levels.

Walt Kelly - First Pogo newspaper strip

Enough said!

Well, now you know what I’m thinking. What are your thoughts?

About these ads
Posted in: Corporate taxes