Recently Sen. Greg Hertz, R-Polson, wrote his opposition to raising taxes on corporations. He argued that corporate tax costs ultimately get passed on to workers and consumers, i.e., if corporations pay higher taxes, they will pay their employees less and charge customers more.
Do we want to be where we were 100 years ago, when Anaconda Copper Mining Company paid a pittance in taxes, despite the phenomenal amount of money they made? Anaconda’s story is a black mark in Montana history. It had a stranglehold on the government and the economy at the expense of a decent and safe livelihood for their workers. Workers and consumers didn’t get the benefit from Anaconda’s sweet tax deal.
Hertz’ argument in favor of trickle-down economics is flawed because the money doesn’t end up trickling down, and historically it has never brought a better life to citizens, only to the corporations. The goal should be that everyone pays their fair share.
Last year 55 of the nation’s largest corporations paid no federal income tax on more than $40 billion in profits. Does that sound like they paid their fair share? Did any of their savings on taxes trickle down to you? No. In 2020, the ratio of CEO-to-typical-worker compensation was 351-to-1. In 1989 the ratio was 61-to- 1. That money is staying at the top.
Stephanie Brancati
Big Arm