Dec 13, 2017 3 min read

I have been reading the commentary pieces by Kent James in the Observer-Reporter about taxing the wealthy. As a small-business owner, I understand taxation from a very personal perspective.

James, like half of America, believes it is sound policy to tax, tax and tax the wealthy because they have it. This half of society rarely understands what it takes to become wealthy, but nonetheless they continually attack this group – 10 percent of the population, which pays 50 percent of the taxes collected. And now that this group may get some tax savings, half of America finds it abhorrent.

In his articles, James meticulously details the pitfalls of reducing such taxation and backs it up with substantial information. In my view, he, like many others, assume the words “CEO” and “corporation” connote evil, greed, selfishness, lust, power, and some other deadly sins. I interact with business owners and corporate CEOs every day. They are Washington County small-business owners just like me. A reduction in the corporate tax rate to these people means pay raises, marketing, remodeling, hiring, repairing, and so many more things, and it does not mean buying out stakeholders, or sending the additional revenue to offshore accounts, as James describes.

James asked the question, “Why should employers pay less taxes than their employees?” And I would like to respond to that question. Our employees did not have the dream or the vision to develop the idea or product for starters. We did. Our employees didn’t find a way to fund our business or our idea or our product. We did. Our employees did not risk everything they owned and will ever own in pursuit of that dream. We did. And when we fail, we go broke, and the employee goes down the street and gets another job. And quite simply without us, there are no employees. Period.

So, yes, in my view the corporate tax should be reduced. Running a business is very hard work. It is filled with taxation, regulation, rules, laws, threats, and protecting yourself from those things is so costly, those on the outside, well, just have no clue.

Most of the CEOs I know will use a reduction in the corporate tax rate to take care of their employees. I don’t know a single CEO who does not appreciate his or her team.

And one more thing not to forget while we discuss the reduction of the corporate tax, the employer still pays his or her income tax, probably at a higher rate than the employee.

A smaller corporate tax rate will do more for employees than keeping it at it’s current level. I sure know it will in Washington and Greene county.

Michael Passalacqua

Washington

Passalacqua is the owner of Angelo’s Restaurant in North Franklin Township.