Republicans would like us to believe that the soon-to-expire tax breaks for 5% of Americans will actually affect the other 95%. Their vague rhetoric seems to indicate the tax breaks benefit far more taxpayers than they actually do. Republicans also posit that reducing the tax burden on the wealthy few will result in more jobs. Let me tell you a story about a wealthy person and how he’s dealing with the awful economic situation we currently are experiencing.
I worked for a gentleman who owns five companies and makes more than one million dollars per year. This man benefits from the S-Corp form of company organization because the income from his companies is passed to him on his personal returns to be taxed at the much lower personal rate. In addition, he has the company pay many of his personal expenses (in violation of IRS tax code,) thus he avoids paying tax on the majority of his income. He has been routinely defrauding the government and has not been caught.
When his companies began to experience hardship, as nearly everyone has in the past three years, his remedy was to lay off employees. Several of us have been without work for some time and the remaining employees were forced to take drastic pay cuts. You ask why people would take the pay cuts rather than leave the job? Because here in Florida, THERE ARE NO JOBS! Employers are having a field day cutting the pay of employees while they themselves are not suffering financially.
My former employer bought a new private plane soon after laying me off. He bought a new condo in Chicago. He continues to siphon off the proceeds of the companies to maintain his luxurious lifestyle. He has cut corners only in matters that negatively affect his employees. He no longer contributes to the pension fund. He tries to cut corners by discontinuing computer support. Since all his business is stored on these computers, it’s a disaster waiting to happen. Meanwhile, private air flights, always personal and not business related, are charged to the company. Mortgage payments for private residences are paid by the company. Luxury cars and cellphone service are provided to family member who do not even work for the company. He dines out five nights a week, charging all of it to the company. He has deposited checks made payable to the business into his personal account to hide proceeds from his business partners then has the gall to sue them for imagined slights.
In my experience, the greed of this man will not magically “go away” should the tax code become more favorable to him. He will simply continue his abuse of his vendors, employees, and business partners. I also expect he is not alone in his behavior; most people in his position are happily living the high life while using the excuse of the bad economy to screw over everyone else.
When will the Republicans realize that our society is being destroyed by their continual cow-towing to these elite few? Will it take a complete “revolution” by the 95% of the citizens who are being abused? That day will come, no matter how much the Republicans try to side track the public with non-issues like “illegal aliens”, “abortion”, “birthers”, and Tea Party idiocy.