I think the most important issue in the US House of Representatives race in Indiana's Bloody 8th District is that very wealthy heart surgeon Dr. Bucshon plans to drastically reduce the corporate US federal income tax rate of large US Multinational Corps from 35% to 20%, or by 43%.
I think any candidate, who takes such a financially naive, mean-spirited stance, so detrimental to the country's finances and so unabashedly against the clear majority of US citizens, has no business being in the US House of Representatives.
What this tax plan does is to substantially increase the US Deficit, to reward these large US Corps for their abhorrent behavior, including their past massive offshoring of US jobs, and to also create a huge incentive for Big US Corps to ship even more US jobs overseas in the future. This past greedy, risky Big US Corp behavior played a large part in creating the 2000s Lost Decade, which caused the many disastrous financial aftershocks the country now faces.
Let me briefly show just how silly Bucshon's tax slashing plan on large US Multinational Corps is.
At the end of 2009, all US Corps had $1.6 trillion of most low-taxed Unremitted Foreign Earnings...that is, cumulative foreign earnings, due in large part to shipping US jobs overseas, that are still parked in Cash and Investments overseas. And these Unremitted Foreign Earnings continue to grow like weeds, to the horrible financial detriment to the US economy and to many of its citizens.
Presently, as a starting point, a US Corp gets federal income taxed at 35% on its grossed-up foreign earnings that are repatriated back to the US.
However, because of Bucshon's tax plan, these foreign earnings repatriated would now be taxed at a much lower 20%, as a starting point.
My quick, back-of-the-envelope computation estimates that the windfall tax savings to Big US Corps due to Dr. Bucshon's tax proposal here on an early 2011 foreign earnings repatriation by all US Corps to be in the range of $250 bil to $350 bil. Whew!
And with Bucshon's tax proposal, Big US Corps have even more of an incentive to offshore US jobs in the future, since they know they'll get the lower labor costs offshore, and now they'll also be able to repatriate these foreign earnings at a 15% lower US federal income tax rate.
In addition to the substantial tax savings Big US Corps will get from the lower-taxed foreign earnings repatriation explained above, these Big US Corps will also get substantial annual federal income tax cuts on their future continuing huge annual worldwide profits.
I have no problem with the Evansville Courier endorsing someone for office, although I think its credibility would be helped if they spelled the candidate's name correctly....it's Bucshon, not Buschon, which the Evansville Courier repeatly states in its today's Editorial endorsement of Dr. Bucshon.
What I do have a major problem with is that in supporting its position for Bucshon, the Evansville Courier avoided the very salient fact that Bucshon plans to dramatically cut the corporate US federal income tax rate for all US businesses, both large and small.
The Evansville Courier only stated that Bucshon plans to cut the corporate income tax rates on small businesses, and avoided any mention of what Bucshon plans to do with large US Multinational Corps....where in fact he wants the same 43% tax rate cut, from 35% to 20%. You can clearly see that in Bucshon for Congress online "Full Plan" on Page 3 under the 2) Immediate and Permanent Tax Relief: Lower the Business Tax Rate Immediately.
The Evansville Courier either did shoddy research in not looking at Bucshon's Full Plan, or it did review it and still decided to conveniently not report it. Either way, the Evansville Courier needs to come clean here. What it did was grossly unfair to Trent Van Haaften, and to all 8th District Voters, who want to be informed on the key issues in this critical election, not misinformed. Van Haaften, an exceptionally bright former Prosecutor, knows Bucshon's Big US Multinational Corp tax slashing plan is ill conceived.
If the Bucshon campaign acted ethically, they would point out the Evanville Courier's serious error here. Let's see just how they act, it will give a good insight into how they will govern, if they end up winning the Bloody 8th Election.
