I really do not understand what the Republican Party has done for West Virginia. It is in the bottom 10 for just about everything and the bottom 5 in major issues like health and education. When will they see the light and quit voting Republican? https://www.usnews.com/news/best-states/west-virginia

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I asked my CPA, who is my best friend of 50 years, and a staunch liberal, about this. Here is the gist of his response:

"The point is that small businesses don't pay much tax at all.

The idea that paying workers more and investing in property and equipment will save you money is mostly bullshit because a deduction doesn't save you taxes 1:1. It's a deduction that reduces your tax based on your rate. If I gave my employee a raise of $10,000 it would save me $1,400 in taxes but I'd still be out of pocket $8,600. A corporation being taxed at 28% federal isn't going to go out and start spending money to get a tax break. They're probably going to cut back so their bottom line (profit after paying tax) remains the same."

Perhaps a corporate tax structure that gets their investment-qualified deductions a lot closer to the 1:1 ratio would be more acceptable to politically active corporations, as well as more realistically helpful toward raising the nation's median income, and reducing the gap, in real life.

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The birth of government debt:


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