Tuesday, January 31, 2012

The G.E. Rule – Part 2

In an earlier post I proposed The G.E. Rule, which is that no company should pay more tax than General Electric, the nations largest corporation and President Obama’s favorite company.   Since G.E. pays ZERO taxes, this would end income tax at the business level and solve a plethora of major problems today:

  • Unemployment would plummet
  • Growth would flourish
  • Capital would flood into the US
  • Your pay would go up
  • Your company would be able to compete with the Big Boys who currently buy influence
  • Your health insurance choices would be yours and not your boss’s (it would end the corporate deduction for employer insurance) 
  • You could leave your job and not worry about your health insurance 
  • Dividends and capital gains could be taxed at the same rates as income (Obama’s  Buffett Rule would be satisfied)
  • Overseas profits could be repatriated instantly
  • It would end taxation without representation 
  • It would satisfy the Tea Party and end Stealth Taxes (all taxes would be transparent to voters once and for all)
  • Most corporate lobbyists would be out of a job
  • Crony capitalism would be seriously wounded
  • Washington’s manipulative power would be greatly reduced
  • Prices on all goods and services would plummet 
  • Stocks would be rationally valued as the double taxation would end (this would end stock bubbles like the Tech Bubble of the 90s) 
  • Companies, even Warren Buffett’s Berkshire Hathaway, would pay dividends
And this is just a partial list of instant benefits from The G.E. Rule.  (Update:  For much more on this, check out my older post - GE is Right!

Of course, this would be politically impossible because almost no politician in Washington wants to cede power to business, markets, or voters.  Lobbyists would freak out.  In fact no politician, even Ron Paul, is proposing anything like this.  If I was a Republican frontrunner, I’d take a good hard look at The G.E. Rule.       

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