Cutting corporate tax is right way to go

The reasoning used the other day in the âÄúThe Corporate TaxâÄù has officially convinced me that The Minnesota Daily editorial board has lost all sense of reality within its little protective college bubble. The main thrust of the article was that Gov. Tim Pawlenty is incorrect during a time of economic downturn to reduce our stateâÄôs corporate tax rate. I say that is evermore the reason to cut corporate taxes. More business revenue means more money for payroll or capital investments. I think many students at the âÄòUâÄô would be shocked to realize how high our stateâÄôs business tax really is today. Figures by the Tax Foundation as of March 2008 show that when combined with federal tax rates, the state of Minnesota has a higher tax rate than any other place in the world, with the exceptions of Iowa and Pennsylvania. The Minnesota Daily justifies this by stating that drivel about loopholes and exemptions that make the tax level more tolerable. Hence, the Daily admits that the tax level is too high, but government gives certain business tax breaks. I ask you this: Why not just lower the tax rate to a tolerable level for everyone instead of letting the government pick winners and losers, distorting the natural marketplace. What really bowled me over was that the Daily editorial board believes that letting a company keep its own money is âÄúworse than a bailout âÄî itâÄôs corporate charity.âÄù In essence, the government has more right to the money the company earned then the company itself. I wonder if the Daily would profess that same attitude toward individual taxpayers? If so, then we are nothing more than slaves of the state, able to keep the fruit of our own labor only upon the âÄúcharityâÄù of a generous Legislature. A quote from Robert Half about individual taxes is just as relevant about corporate taxes: âÄúPeople try to live within their income so they can afford to pay taxes to a government that can’t live within its income.âÄù It is government spending that needs to go down but has not, due to political expediency, which would destroy private industry. The Daily has done the easy thing by stating where government needs to increase funding. Now IâÄôm not holding my breath to see the Daily explain where the government should cut so that it does not kick the taxpayer, both private and business, when they are down. Justin Kimmel University student