Don’t you hate preparing your federal income tax? I certainly do. I am always 100% certain that I am doing it wrong. Most of the time, my correspondence with the IRS proves that my fears of doing it wrong are well-founded!
Small-time taxpayers like me pay a lot of income tax. Usually, around 30% of my income (as a small-time consultant) goes to federal income tax. Meanwhile, big corporations pay less than nothing. I mean, literally, less than nothing.
One small, local example of corporations getting gifts from the government is Duke Energy (a “holding company” based in Charlotte, North Carolina), which operates big wind farms in Wyoming, including Happy Jack Windpower, Top of the World Windpower and Campbell Hill Windpower. Duke has a three-year income (2018, 2019 and 2020) of $7.9 billion and pays an effective three-year income tax rate of negative 15.5%. That means our federal government paid Duke Energy over $1.2 billion! Evidently, the government must be concerned that Duke Energy might go broke!
As you might expect, this egregious outcome is a result of the Republican tax cuts of 2017. Funny that us little people are still paying taxes.
That is $1.2 billion that the government charged me and you in taxes that they just gifted to a big corporation! What could we have done with that money other than make fat cats fatter?
Well, my health insurance premiums are $1,153 a month. We could have paid the health insurance premiums for more than 88,000 people. Multiply that by all the fat cats getting corporate welfare, and we could, no doubt, subsidize the health insurance of everyone in the country. The country would be healthier, and ordinary folks would have a little more money in their pocket.
I am not asking that the fat cats pay more than their fair share. However, they should pay their fair share.