Tax tables don’t tell whole story

The wealthy and conservative politicians cry about the very high tax rates of 35 percent. They claim our extremely high individual tax rate of 35 percent and the corporate tax rate of 35 percent is ruinous to our economy. Don’t be duped by this and by the rhetoric that the top 1 percent are paying the highest percentage tax rates. The problem is they don’t pay those published rates because of all the loopholes.

The fact is that corporations in 2011 paid only 12 percent on their income that was supposed to be taxed at 35 percent. The share of taxes paid by corporations has been decreasing since 1943, when it was near 40 percent, according to a Time Magazine article this month.

And for individuals, it is just smoke and mirrors. Look at Romney - paid less than a 14 percent rate on his income. The tax tables would lead you to believe he should fall into the top 35 percent rate based on his income. However, since most of Romney’s income is from investments and dividends, he pays less than 14 percent. Maybe it is time to eliminate corporate tax altogether along with all the loop holes, and raise the tax on individuals’ earnings, whether or not those earnings are from earned income, investments, or dividends.

This would put our corporations in better competition in the world market and would stop this exponentially expanding spread between the poor and the wealthy.

Just remember, unless you are terribly naive, the tax rate tables do not reflect what in fact is being paid. It’s time to quit the lies, and do away with all the smoke and mirrors in taxes.

Leo A. Dietrich

Lake Villa