Business Create Wealth and Jobs: Remove Corporate Taxes to Stimulate Growth and Job Creation
Business is the only wealth creating entity in society. Reflect on business' effect on society and it will be evident that business is indispensable. Ultimately, business is government’s only source of income. Governments need to provide a friendly atmosphere for business to grow and create productive jobs.
Business employs people, pays salaries and wages that allow consumers to live, buy stuff, give to church, charity, and elsewhere. Its ability to pay comes from producing and selling machinery, equipment, goods, and services. Business pays taxes to governments, too, enabling them to provide resources to the public. Besides, business donates funds for philanthropic purposes, and pays dividends to its owners.
Business is the life of the economy. Ideally, only paid out profits (dividends), salaries, and wages, should be taxed. Business should be encouraged to reinvest profits and so, create more jobs.
Some governments create conditions for unions to destroy wealth and jobs. They allow closed shops, which force workers to join unions and expand unions’ agendas. This practice should end. However, unions and management must find ways to work together as they do at Southwest Airlines. If they do not, many businesses will continue to destroy value, and lose jobs.
To be fair, bad union practices thrive with poor corporate leadership, like what existed at General Motors for years.
I can hear the criticisms. How do you prevent those rapacious capitalists from paying outrageous sums to their executives, and from exploiting workers? How do you prevent them from merely stashing away funds in the business? How do you encourage business to create productive jobs?
Valid questions; before we look at each, let us agree that eventually, business creates all wealth in society. It pays wages to employees who pay taxes. As well, it pays taxes directly to government, which often spends it wastefully.
Executive Pay
Many government regulations exist. Even so, too many executives are overpaid for poor results. The argument that we need to pay excessive amounts to attract top talent is nonsense. It would be good to get rid of some of these folks who collect huge compensation while their firms perform poorly. General Motors is a classic example. As it was dying slowly, inept leaders continued to be overpaid.
That said, governments' role must preclude reigning in executive pay. That’s the owners’ role. Government must work to remove barriers that could prevent owners from exercising this right.
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