These days, prices are rising, from food to household goods to drugs to rents, especially for middle income families. Even with what seemed to be good salaries, it’s hard to keep up. The government too is running at a deficit, so much so that certain parties want to cut or do away with Social Security and Medicare. “Entitlements”, as the Republicans call it, even though we the people have paid in to these funds ever since we began working. They claim the government’s deficit is out of control and cuts must be made in order for our country to survive.
I wonder how many of our Republican congressional representatives really understand what the average individuals or families are going through. When was the last time these representatives took a trip to the local supermarket? Can they relate to the rest of us? How? By taking away our Social Security? They must be kidding or do they really not give a damn about us.
If not us, who do they really care about? How about the corporations, the giant corporations, the ones they are beholden to for the monies that they contribute to their cause. How is it when so many of us are hurting, these giant corporations are reporting record profits. Did you know that 466 United States corporations had profits of one billion dollars or more this past year. Apple made over $120 billion. Microsoft, Alphabet and Exxon Mobil had profits over $70 billion. The combined profits of these 466 corporations exceeded 2.6 trillion dollars. That’s trillion dollars! But what about the 251 United States corporations who only had profits between 500 million and 999 million dollars? Their combined income exceeded $175 billion.
With such profits, what more could these U.S. companies ask for? They probably didn’t even have to ask. With Trump in the White House. the maximum corporate tax rate was cut from 35% to 21%. Some of these corporations even have a lower tax rate and quite a few paid no taxes at all.
With prices for virtually everything going up, these corporations not only made record profits but they got a tax reduction from 35% to 21%. Why am I repeating that fact? Because back in the 1960’s, do you know the income tax rates that corporations had to pay on their profits? On the first $25,000 in profit, their tax rate was 22%. Income over that $25,000 was taxed at 48%. To repeat, 48%! Now, in 2023, it is these giant corporations who are making out like bandits and we the people have to worry about losing our Social Security benefits.
To close the government’s deficits, the solution is to increase the corporate tax rate to more reasonable levels. Without worrying about deficits, the funding of Social Security will be fine.
But what can we do about those within this group of giant corporations who pay little or no tax, to ensure that they pay their fair share? The answer is to have them pay an alternative tax based upon the company’s net worth. This is one of the alternative methods that New York State uses to calculate the corporate tax due to the state.
Currently under consideration, to ensure that Social Security is adequately funded, is to increase the maximum taxable earnings base from the current $160,200 to a higher cap on Social Security payroll contributions, of course matched by the employer.
The bottom line: The most profitable corporations should pay their fair share of income taxes.
Note: The source regarding profits of United States corporations for 2022 – “CompaniesMarketCap.com” – Companies ranked by earnings.”