Saturday, President Barack Obama said corporate America is unpatriotic by not paying its “fair share” in taxes and that “corporate inversion” needs to be stopped by Congress. Corporate inversion is the purchase of a foreign firm in a low-tax country then re-chartering the business in the new low-tax location. The U.S. has the highest corporate tax rate, by up to 20 percent. This is still a free country. Legislation couldn’t stop a “new” business from starting outside the U.S. Any legislation would stifle job creation and not provide increased corporate taxes.
The U.S. firm could simply shut down and reopen in the foreign country.
Addressing Obama’s “fair share” angle: The federal and state governments took 32 percent of my wages in income tax. While about 50 percent of wage earners pay 0 percent. Half of those 50 percent receive money from the government. Shoots down Obama’s “fair share” argument! Keep our industry internationally competitive.
Richard Kappmeier, Modesto