watchdog

Friday, October 31, 2008

Where does tax money come from?

My brother and I ran a manufacturing business for 40 years here in Memphis. We made and sold industrial doors, fire doors and electronic door operators. In most years we made a profit, we employed a lot of people and the company and our employees paid local, state and federal taxes.

I hear people complain about the current situation. They say that the government should intervene and should control and raise taxes on greedy businesses. I have asked them a simple question. Where does tax money come from? They say that is simple. Part of my salary goes for taxes, or part of my interest or dividends on investments goes for taxes. But I say if you are a government employee (fireman, policeman, public hospital employee, etc.) your salary comes from the real taxpayers as you produce no profit. (That is not to say that these jobs are not important because they are).

The point here is that the fountain of all tax money is a for "profit business" that hopefully produces a profit and pays salaries, benefits, dividends and interest. Examples of real businesses are chemical companies, oil companies, manufacturing companies, mining companies, aircraft companies, farmers, home builders, software companies, even banks and the like. An example of a non producing business is the gambling and the lottery business which produce nothing and is really a transfer tax from the dumb to the smart.

Now we have politicians who want to raise taxes on business or give greater power to unions or give greater sway to trial lawyers which will hurt the source of all tax money, the golden fountain of business profits. There is nothing wrong with unions as long as they realize that their very existence depends on the health and profitability of the company they work for. You need look no further than the auto companies to see what happens when unions overreach. Trial lawyers have destroyed more businesses than any other group in our history.

I ask that voters step back and look at your choices and they are not good. We have probably the worst group of politicians (local, state and national) to pick from that I can remember in my over 70 years here in Memphis. We need to replace the whole lot with people of honor who put country first. Pray for America but also take some action. “For profit businesses” are the real wellspring of tax money. Kill that source and we have nothing.

1 Comments:

  • Watchdog. I would just like to personally thank you for your work regarding the Charter Commission. The silent majority is forever indebted to you for your civic accomplishments.

    By Anonymous Anonymous, at 12:42 PM  

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