Wednesday, January 30, 2013

Ron Johnson Fails Again

It should surprise no one that tea bagger senator, Ron Johnson, is a fan of Ayn Rand. He recently gave an interview with the Rand-inspired, Atlas Society, where he made, as you would expect from someone like Johnson, a lot of stupid comments. However, one particular thing he said hasn't achieved as much attention as it probably should have (skip to 6:37):


For those of you who can't watch clips at work:
"It's a real concern," Johnson said, when asked if he saw examples of the private sector "shrugging"—that is, wilting under the pressure of government regulations. "As I talk to business owners that maybe started their businesses in the '70s and '80s, they tell me, with today's level of taxation and regulation, there's no way I can start my business today."
Sigh.

See, this is why it's difficult to have a grown up conversation with these folk. This is yet another example of a far right douchebag trying to argue his case by once again rewriting history.

So taxes in the 70s and 80s were much more business friendly than under Chairman ObaMAO's regime? Let's take a look, shall we? Here's a list of the historical corporate tax rates from the non partisan Tax Policy Center. A quick glance shows that the top rates ranged from 49.2% in 1970 to 40% through 1987, with the last few years of that decade going at 34%. How does that compare to the anti freedom environment we have today? Currently, the rate is a whopping 35%!

Well, that appears to somewhat undermine Johnson's complaint. But Let's continue. What about the capital gains tax rate? The rate seemed to range from 20% on the low end, to as high as nearly 40% in those two decades. Up until the the beginning of this year, the rate under the entire first term for Obama was a crushing....15%?

Hmm.

So how do you suppose Johnson squares this circle? I would imagine that he rationalizes in by one of two ways. One theory is that Johnson may belong to that group of people who subscribe to the belief that numbers worked differently back in the old days before the stupid liberals recruited the homosexuals to write our arithmetic textbooks.

Alternatively, as Johnson has demonstrated quite recently, it could be that he simply just doesn't care about getting his facts in order.


Cross posted at Dead Heat Politics

10 comments:

  1. Are you really defending the position that raising taxes is beneficial to an economy? Dude, you better open your eyes and bit and see the government for what it is. It regulary comits crime, destroys business, misallocates resources that the free indviduals would not..the list is endless dude. They do nothing good for anyone. All they do is steal and bribe people for votes to stay in power.

    Our standard of living has fallen dramatically since the 70's and 80's dude. It is much harder to start a small business today than it was then..Do you know anyone that is an independent business man anymore? The numbers are shrinking as the government(bribed by businesses worried about competetion) creates more barriers in the market.

    WHY DO PEOPLE THINK THE GOVERNMENT IS GOOD?! WHY?!
    ITS LIKE THEY THINK THEY ARE SOME KIND OF BENEVOLENT FORCE?!?

    ReplyDelete
    Replies
    1. Whether it is harder to start a business or not today does not matter. The Senator had stated taxes today were more oppressive than those of the 1970's and 1980's. The article above points out that in the time frame discussed, taxes were HIGHER than they are now. Whether high taxes or good or bad for the economy, the fact does not change.

      Delete
    2. freedomism is just another brainwashed repub. Not worth anyones time. He states facts then provides zero information to back it up (b/c there is none). Typical Fox News watcher.

      Delete
    3. First of all, anyone with a brain in their head and who has some basic ecomonic sense of understanding knows that the issue of our econnomic stagnation and limited small business growth (along with low tax rates) has many more seperate variables that are preventing progress in this area. Tax rates obviously play a crucial role in business success, but, easy money policies and monetary debasement by the government/federal reserve thus creating an artifical demand for consumption is what is preventing business start up from occuring. This is actually what also allowed business start-up to be made more easily in the 70-80's time period. This time period was the beginning of our debt/credit induced ecnonomy. This credit bubble popped in 2008 and suprisngly so (sarcasm) the government/federal reserve is still clearly trying to enforce these easy money policies (i.e QE1, QE2, QE2, Twist etc..) Problem is that today we are in a deleveraging (reducing our debt) period and there is no demand for consumption. Higher tax rates will only harm any hope for a recovery. You are living in space if you think it's easier to start a business today than it was 30-40 years ago.

      Second, the moron that wrote this article should consider keeping his/her writings exclusive to non-business realted matters as it's clear he/she is not a very business savy or markets oriented person. He/She negates that small business is taxed at the MARGINAL INDIVIDUAL INCOME tax level. This includes all federal, state and local income taxes. Hence, the corporte tax rate has NOTHING to do with small business taxiation. Nice of you to put up a link to the historical corporate tax rate, but it has nothing to do with this conversation you moron. Not to mention, the individual income tax rates varied greatly during the 70-80's time period (a huge time gap to choose as a reference btw). The INDIVIDUAL TAX RATE (cause yes, that's what small business is taxed at) ranged from levels much higher than current to levels much lower than current. However, again the ability of a entreprenuer and start-up business to cope with varying levels of taxiation had much to do with our debt/credit based economy. It was in fact easier for them to cope with these varying tax levels due to our artiically, created by government debt/credit economy. This allowed for significantly more capacity for demand than does the economy of today due to the vast amount of avaialable credit by consumers (this is most imporatant as consumers don't have the available credit today that they did then), banks etc...Again we don't have this availability of credit today since we have maxed it out. Hence, there is no demand for product, services, etc.. like there was 30-40 years ago.

      I could go on forever about this, but I'll end it now. Do us a favor and before posting such articles, please get your facts in order and become informed on the issues. This is especially true if this issue (such as this one) is a gateway to much more complicated discussion.

      Lastly, "Freedomism" is arguing from a Libretarian standpoint, harldy a Republican/Conservative one and he brings up many valid points. Nice of "Anonymous Asswipe" to reveal his/her ignorant, sterotypical and assumption based attitude though.

      Delete
  2. It's like you didn't even read the article...

    ReplyDelete
  3. Freedomism, are you saying that our standard of living has gone down since we lowered taxes from the 70's and 80's?

    ReplyDelete
  4. http://www.reddit.com/r/politics/comments/17lkxf/tea_party_senator_says_people_who_started/c86ppqi

    Suck on that for a few minutes

    ReplyDelete
  5. There's more to it than just the corporate tax rate.
    There's FICA & SECA: http://www.ssa.gov/oact/progdata/taxRates.html
    Add to that, as applicable:
    Accounts Receivable Tax
    Building Permit Tax
    CDL license Tax
    Cigarette Tax
    Corporate Income Tax
    Dog License Tax
    Excise Taxes
    Federal Income Tax
    Federal Unemployment Tax (FUTA)
    Fishing License Tax
    Food License Tax
    Fuel Permit Tax
    Gasoline Tax (currently 44.75 cents per gallon)
    Gross Receipts Tax
    Hunting License Tax
    Inheritance Tax
    Inventory Tax
    IRS Interest Charges
    IRS Penalties (tax on top of tax)
    Liquor Tax
    Luxury Taxes
    Marriage License Tax
    Medicare Tax
    Personal Property Tax
    Property Tax
    Real Estate Tax
    Service Charge Tax
    Social Security Tax
    Road Usage Tax
    Recreational Vehicle Tax
    Sales Tax
    School Tax
    State Income Tax
    State Unemployment Tax (SUTA)
    Telephone Federal Excise Tax
    Telephone Federal Universal Service Fee Tax
    Telephone Federal, State and Local Surcharge Taxes
    Telephone Minimum Usage Surcharge Tax
    Telephone Recurring and Nonrecurring Charges Tax
    Telephone State and Local Tax
    Telephone Usage Charge Tax
    Utility Taxes
    Vehicle License Registration Tax
    Vehicle Sales Tax
    Watercraft Registration Tax
    Well Permit Tax
    Workers Compensation Tax

    and the burden is substantial, as well as a disincentive to hiring. But hey, I guess the higher structural unemployment is just due to all of those greedy republicans not wanting to share the wealth, right?

    ReplyDelete
    Replies
    1. I like how you include several taxes that regular people who aren't business owners pay as well.

      Delete
  6. Liberals are their own worst enemies’ bro. They are willful slaves to the plantation known as government.

    ReplyDelete

ads