Understanding Ron Paul: Corporate Tax

By Dan Beaulieu

Twitter

 "I am an imperfect messenger, but the message is perfect"  –  Ron Paul

One thing is certain of Dr. Ron Paul, he is not a sound-bite candidate. That is, he often speaks over the heads of voters which causes a lack of understanding. It is in my personal opinion that Ron Paul cannot be understood in the 30 seconds allocated to him in debates. His ideas must be studied; however, once one does understand Dr. Paul, they often stick around.

For this reason I present to you my series:  

Understanding Ron Paul


Corporate Tax

I have encountered a few individuals who said they would not vote for Ron Paul because he would lower the corporate tax, essentially arguing that he is working to benefit the 1%. This is a simple fallacy that can be easily debated.

When an individual pays a tax whether it be a sales tax, income tax or other form of taxation they pay for it with their own money, this we know. However, for some reason the arguer does not grasp how a corporation pays a tax, they assume that the corporation, like the individual, pays a tax from its profits. This is not the case, the corporation pays its taxes in the price of its goods. If you raise a corporations tax rate by 15%, the corporation simply raises the price of its goods by 15% to make up for the difference.

The current corporate tax rate is 35%. Ron Paul’s Plan to Restore America would reduce that rate to 15% which would make America more competitive on a global market. Simply put, if corporate taxes are reduced the corporation would most certainly lower the price of its goods or services to compete with other companies in their industry. Lower prices draw more consumers, both domestically and globally, higher sales translate to more production and more production translates to more jobs for Americans.

 In summary, an excessive tax on a corporation is a hidden tax on the people, while a lower tax on a corporation leads to job growth.

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Suggested Reading: Henry Hazlitt 'Economics in One Lesson'

Understanding Ron Paul: Government Spending Vs. Private Spending

By Dan Beaulieu

Twitter

 "I am an imperfect messenger, but the message is perfect"  –  Ron Paul

One thing is certain of Dr. Ron Paul, he is not a sound-bite candidate. That is, he often speaks over the heads of voters which causes a lack of understanding. It is in my personal opinion that Ron Paul cannot be understood in the 30 seconds allocated to him in debates. His ideas must be studied; however, once one does understand Dr. Paul, they often stick around.

For this reason I present to you my series:  

Understanding Ron Paul



Government Spending

We hear about government spending daily, we hear it from radio hosts, TV pundits, from President Obama and we hear it countless times in the GOP debates. However, the government must spend some money, so what is good spending and what is bad spending? I honestly don’t believe that any other political figure understands this better than Ron Paul.

Essentially, when our government spends money, say, to create a jobs for instance. They go about it differently than the private sector would. As the private sector creates a job purely out of demand, the government creates a job simply to create work. This is counterproductive and actually creates job-loss in the private sector. To understand this notion thoroughly I offer a short chapter from a book written by Henry Hazlitt titled “Economics in One Lesson”.

 

(more chapters on youtube)

As Mr. Hazlitt illustrates, government cannot create a job without first taking one from the private sector. This simple notion can be easily proven through elementary mathematics, the government cannot magically create jobs. If the government takes money, for any purpose whether it be for foreign aid & war or be it research & development it is always at the peril of the tax payer and private sector jobs.

To reiterate, when the government takes money from the taxpayers pocket, it results in less money that can be spent as a consumer in the private sector. If your buying power is diminished then fewer products are sold and there is less demand for production. When production falls, layoffs ensue shortly after. Unemployment rises.

Ron Paul would decrease this by doing away with 5 extremely wasteful bureaucracies. Departments that when scrutinized are obvious failures and ultimately job destroyers.

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