If we view taxes as a contribution to society and our way of life, as they fund essential public services, infrastructure, and social programs like Social Security and Medicare, forming the glue that keeps everything functioning, similarly, businesses contribute enormously too, even if they pay a lower percentage in taxes than the average working-class citizen.
If we consider taxes as a means to enhance society, ensure smooth functioning, and in some circumstances, redistribute wealth, businesses also play a crucial role in achieving these goals through what they produce.
Consider that businesses provide employment, helping people support themselves and their families. They drive innovation, creating new products and technologies that improve our lives. Although they may not send a physical check to the IRS, they significantly contribute to the tax base by stimulating economic growth through their goods and services, which generate tax revenue. Businesses also make substantial contributions to society by supporting communities through charity, sponsorships and volunteer efforts. For example, Anheuser-Busch has donated cans of water for disaster relief, and Elon Musk made Starlink available for communication in hurricane-affected regions. Additionally, businesses heavily invest in infrastructure, including communication networks like telephone and Internet services, as well as rail and shipping services.
In other words, when we demand the rich and the businesses pay their fair share, are we overlooking the valuable contributions they already make? We all play a role in a functioning society, and if we solely measure contributions in dollars and cents, we're missing the point. We're focusing on the wrong things.
How would we feed our families without the jobs that businesses provide? Beyond that, how much wealth would we miss out on without the opportunity to invest in these businesses through stock sales? Without the profit incentive, what inventions that enhance our lives might never have existed?
Taxing businesses or the wealthy more pulls money out of the real economy and places it in the hands of the government who are not equipped to function as drivers of innovation and growth. The rich, with less to invest, would be hindered in creating new ventures or expanding existing ones. Instead of fostering economic growth, as the government suggests more taxation would achieve, taxing businesses more actually depletes resources, leaving less money available for meaningful contributions to society.
Sure, it can seem disheartening to see the top 1% getting richer and richer, and it may seem like they're holding back the lower rungs of the financial ladder. But I believe the opposite is true. Without strong businesses growing and generating massive profits, society would be in far worse shape than it is today.
As I said before, we all have a role to play. I think understanding our place in the world is important, and rather than undermining the achievements of one class, what another class achieves should be an incentive to have loftier goals for ourselves—on top of that, success should never be something that we should ever want to penalize.
When it comes to taxation, we have to ask ourselves what truly improves our lives? Is it economic growth that fosters better opportunities for working Americans, or the artificial redistribution of wealth that fails to lift anyone out of their current class and circumstances?
Regardless of what anyone thinks "fair share" really means, I think businesses are already paying their dues and we have more to be thankful for than to be angry about. No matter how unfair it seems. When we look around us, all we see are the businesses and the massive profits they generate. We fail to see how our lives might be very different if they did not exist, or what opportunities might not exist without what they contribute for them to even be possible.
The United States is the richest nation in the world for a reason. And that's because we allow people to become rich and be more in control of their own wealth. You can say my commentary here is a commentary on trickle-down economics and claim it doesn't work. I contend it has always worked, and the only problem we have with it is that some people simply don't open the spigots to their faucets.
Taxing the rich and businesses more is not the solution to our own financial problems we face. Allowing the free markets to work and educating people on how they can participate in it is the answer. Taxes do not contribute to better opportunities for society as a whole. It robs us of them.
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© 2024 Jim Bauer
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