Time for wealthy to pay fair share

Time for wealthy to pay fair share

Tax increases and/or elimination of tax loop holes are essential in an effort to reduce the deficit. It has to be a balanced effort of reducing spending and increasing revenues (taxes).

The major emphasis seems to be solely on reducing spending that primarily affects the middle class and I disagree with this approach. I believe the middle class remembers putting up $780 billion to bail out the many major financial institutions. Did they appreciate our bail out? Evidentially not, as they went back to business as usual greedily pursuing wealth with abandon.

Today, these institutions are spending large sums of money with their lobbyists to fight hard against any type of government regulations and any new taxes. Their complaint about regulations is that it involves too much red tape and government interference.

Well, I believe many will agree that the banks need to be monitored to insure correct conduct. Regarding taxes, most financial institutions have done an excellent job of avoiding taxes by establishing off shore subsidiaries in tax havens. Bank of America, JP Morgan Chase, Goldman Sachs and many other U.S. corporations have established off shore subsidiaries in countries with 0.0 percent corporate tax rate

This is not illegal but, when it comes to paying American taxes they want nothing to do with the good ol’ U.S. of A. Offshore tax abuse is not just limited to Wall Street. Each and every year corporations and the wealthy are avoiding more than $100 billion in U.S. taxes by sheltering their income offshore.

It’s not fair to balance the budget on the backs of the middle class. It is time for tax fairness that involves corporations and the wealthy to pay their fair share.

Ron Fuchs

St. Charles