Tax people, not businesses
By Jeff Draskoci-Johnson | Winona

I’m glad Ms. Lachinski liked my column on taxes.

I would, though, like to clarify a point she seems to have missed. I oppose taxing the oil companies.
In fact, I oppose taxing businesses, period, for several reasons.

First, it’s humanly impossible to come up with a tax system that treats all businesses fairly. An oil company is very, very different from a family-owned jewelry store, and both are very, very different from a big-box retailer like Target.

It is, though, possible to come up with a fair tax on people. Although we are all individuals, our purely economic needs are quite similar: food, shelter, clothes and recreation. We differ only in how much we spend on these things and what our particular tastes are. So, if fairness is an issue, we should stick to taxes on individuals.

Second, it is vital to remember that profits don’t always benefit some greedy rich person. Exxon-Mobil, for example, is owned by hundreds of shareholders, including many pension funds. So if you “punish” Exxon-Mobil, you may wind up punishing your neighbor’s retirement account. At the other end of the spectrum, Wal-Mart is nearly completely owned by the Walton family; however, most of the second-generation Waltons are not involved with the business, and have created real careers of their own. To my knowledge, none of them has spent much of their wealth on themselves: It’s still invested productively.

Bill Gates and Warren Buffett, wealthier still, have given most of their money to charity — and given it wisely, by all accounts. Donald Trump is poor compared to these folks, but, with his gold-plated faucets, is much more objectionable. If morality is an issue, we should promote investment and charity, but discourage lavish consumption. Taxing businesses is not the way to do this.

Finally, abolishing business taxes would eliminate the never-ending lobbying over tax laws. This would reduce the influence of lobbyists, and it might give Congress and the state legislatures more time to spend on real issues.

By all means, tax rich individuals more. But don’t tax businesses at all.

Advertisement