I constantly say that the changes in government won’t come from government, but from the people. And despite the protestations of the Left, wealthy people are people too.
In fact, unlike wealthy Liberals who either inherit their money, make money via entertainment, or stepped on the necks of the poor with their crony capitalism, Conservative wealthy actually work for a living. And it is they who can give voice to the Conservative movement.
This is what may be happening with corporate taxes; billionaire activist and investor Carl Icahn has issued a $150 million threat to Congress. They either need to pass legislation slashing corporate tax rates or face the wrath of his new super PAC.
In a letter first sent to members of Congress and on his public website, Icahn has vowed to pour millions of his own dollars into a super PAC to help business from the greedy Big Government interests. Icahn wants legislation to lower corporate tax rates on overseas profits.
Estimates are that U.S. corporations have parked over $2 trillion offshore, for the purpose of avoiding the outrageous tax rates of the U.S. Fed. On ideology alone, Obama has avoided a true stimulus to the economy by lowering these taxes. As any smart leader would do, Icahn wants to let them bring that money home at a massive tax discount.
For those keeping score: Obama is a failed president with a background as a failed community organizer, and Icahn is a successful, wealthy billionaire.
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Icahn is also one of the largest investors in Apple, which holds over $181 billion in profits overseas — more than any other U.S. multinational corporation.
“I believe the time has come to also hold Senators and Congressmen accountable for the current gridlock in Congress that prevents important legislation from being passed,” Icahn wrote. “This is why I’m currently preparing to form a Super PAC with an initial commitment of $150 million from me personally.”
Take that, Donald Trump.
And Icahn’s suggestion is not just backed by Republicans. Sens. Rob Portman (R-Ohio) and Chuck Schumer (D-N.Y.) have joined to co-sponsor a bill to use the revenue raised by a one-time repatriation of overseas corporate profits at a very low tax rate to pay for long-term highway funding, while also permanently lowering the tax rate on overseas corporate profits.
Ok, so they tied it to more money for “roads and bridges,” but at least it’s a start. The fact is this money should be used for R&D and new manufacturing, and not some political slush fund.
The naysayers argue that this is just an example of billionaires controlling the system, aka the standard Liberal nonsense. Believe it or not, billionaires are at the mercy of the system.
“This really sums up what politics has come to be, which is an argument among billionaires,” said Nick Nyhart, president and CEO of Every Voice Center, which advocates for campaign finance reform.
Idiotic Liberals thwarting true growth in the economy, because they are one trick ponies: more money, period!
The fact is entrepreneurs are smarter than the government. And as Icahn warned, corporate tax-cutting is a way to prevent further corporate “inversions,” or what the Left sees as a controversial practice whereby U.S. companies avoid U.S. taxes by purchasing a foreign company and then transferring its main business operations to the foreign company.
Well there is no controversy. Money flows like heat, and money will go where it can work best. This is why companies like Medtronic and Burger King have done exactly that. Medtronic was hit with the “medical device” taxes that are part of ObamaCare, and Burger King merely saw Canadian taxes as a better alternative.
The Democrats simply want to make it illegal to do these inversions, as that’s their answer to anything that allows companies to grow. Legislation proposed by House Democrats and Sen. Dick Durbin (D-Ill.) would limit inversions, essentially stifling economic growth.
And he’s not the only one, as Bob McIntyre, director of Citizens for Tax Justice, previously said about the Portman-Schumer bill:
“The plan gives big multinationals new avenues for tax avoidance whether they report their income in the U.S. or shift profits to tax havens, which is truly a ‘win-win’ for corporations seeking to avoid paying their fair share.”
Corporations are what work in America. And despite Hillary Clinton’s claim that corporations don’t create jobs, that is exactly what they do. And there is no such things as “tax avoidance” for corporations. Business runs to satisfy its stakeholders and to operate successfully, which means profitably. Business is not in business to feed an obese government, particularly one like ours who spends with no end in sight.