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The Hysteria About Cutting Taxes Versus Reality
Here is an idea: Let’s end taxes on corporations. Yes, I mean it —zero taxes for the big businesses of America. By now, some readers’ noses are completely bent out of shape. What? Are you crazy? Let corporations escape paying their “fair share”? How outrageous. Free them from their civic duty? Obscene. This would be […]
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Here is an idea: Let’s end taxes on corporations. Yes, I mean it —zero taxes for the big businesses of America.
By now, some readers’ noses are completely bent out of shape. What? Are you crazy? Let corporations escape paying their “fair share”? How outrageous. Free them from their civic duty? Obscene. This would be a gift to greedy capitalists.
Before we get too churned up and burned up, let us look at a few realities. One is that corporations do not pay taxes. They really do not. Because they pass along the cost of taxes to others.
Corporations shift the cost of taxes to customers, by raising their prices. They also pass the cost of taxes along to workers, by holding back pay raises and benefits. And, taxes also hurt future workers, when the corporations facing them scrub plans for new plants and expansions — or by moving plants abroad.
Companies also pass along the cost of taxes by squeezing suppliers — who, in turn, squeeze their workers, to make up their losses.
Businesses also recover the cost of taxes by donating less to charities and contributing less to employee pension plans.
This is not fancy economic theory. This is everyday reality. Evidence of this is all around us.
Two years ago, Congress cut tax rates for corporations — from 35 percent down to 21 percent. In theory, this should cause companies to do the opposite of what they do when tax rates go up.
Well, they have. For instance, wages are up. Average hourly wages now run about 3.2 percent higher than a year ago. The pay of low-wage workers is up the most.
Corporations have hired more workers and created more jobs. Everywhere in the economy, we see more jobs and workers. This has forced some companies to pay workers more money. As have increases in the minimum wage.
Companies also poured 24-percent more into pension plans the first year after the tax cuts.
Meanwhile, corporations are hardly raising prices. Various indexes show only modest price rises, while some show virtually none.
After corporate tax rates came down, corporations also contributed 5.4 percent more to charities in 2018. Charity experts predict businesses will increase their gifts by many millions more this year and next.
Corporations have also been pouring money into new plants and expansion efforts. They have not blown the barn doors down. But many are clearly waiting for the smoke to clear from the trade battle with China.
If we want to reverse these trends, we need only to raise tax rates on corporations again.
Instead, we have every reason to cut our tax rates to zero for corporations. Because corporations are conduits, they simply pass taxes along to other players in the economy.
If we ended federal taxes on companies, we would probably begin to attract firms from around the world. What an alluring prospect for businesses: American soil, American workers, and zero corporate taxes.
From Tom…as in Morgan.
Tom Morgan writes about political, financial, and other subjects from his home in upstate New York. You can write to Tom at tomasinmorgan@yahoo.com, read more of his writing at tomasinmorgan.com, or find him on Facebook.

Tompkins Trust Company has promoted BRAD TOTMAN to commercial lending relationship manager. He started with the banking company in 2012 as a business development officer for the Cortland-Dryden region. Totman was promoted to small business lending manager in 2017 and now to commercial relationship manager in 2019. He has more than 20 years of experience.
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Tompkins Trust Company has promoted BRAD TOTMAN to commercial lending relationship manager. He started with the banking company in 2012 as a business development officer for the Cortland-Dryden region. Totman was promoted to small business lending manager in 2017 and now to commercial relationship manager in 2019. He has more than 20 years of experience.

The Martin J. Whitman School of Management at Syracuse University recently appointed MEGHAN FLORKOWSKI to director of the WISE (Women Igniting the Spirit of Entrepreneurship) Women’s Business Center. She previously led a portfolio of entrepreneurship training programs at the Institute for Veterans and Military Families at Syracuse University that reached more than 30,000 military service
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The Martin J. Whitman School of Management at Syracuse University recently appointed MEGHAN FLORKOWSKI to director of the WISE (Women Igniting the Spirit of Entrepreneurship) Women’s Business Center. She previously led a portfolio of entrepreneurship training programs at the Institute for Veterans and Military Families at Syracuse University that reached more than 30,000 military service connected individuals. One notable program in this portfolio (V-WISE) was for women veterans, which Florkowski grew into a nationally recognized program that reached more than 2,000 women veterans across 49 states. She also worked in employer relations at Le Moyne College, as an operations manager for the USO, as a military transition career training leader in Europe, and as a captain in the U.S. Army, among other positions. Florkowski earned a bachelor’s degree in engineering psychology from the United States Military Academy at West Point and a master’s degree in exercise science and health promotion from California University of Pennsylvania.

HR Works, Inc. has hired DEVIN R. TRIFELETTI as a business development manager in its Syracuse office. He brings more than two years of experience in human resources and will leverage his expertise in HR technology to support HR Works’ business development department. Trifeletti holds a bachelor’s degree in marketing and an MBA from St.
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HR Works, Inc. has hired DEVIN R. TRIFELETTI as a business development manager in its Syracuse office. He brings more than two years of experience in human resources and will leverage his expertise in HR technology to support HR Works’ business development department. Trifeletti holds a bachelor’s degree in marketing and an MBA from St. John Fisher College.

The Oneida Indian Nation has named gaming veteran LYNN SEGARS the new general manager of Yellow Brick Road Casino in Chittenango. Throughout her 30-year career in the gaming industry, she has held several executive positions in gaming operations and guest service at some of the leading casinos in the country. Prior to joining Yellow Brick
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The Oneida Indian Nation has named gaming veteran LYNN SEGARS the new general manager of Yellow Brick Road Casino in Chittenango. Throughout her 30-year career in the gaming industry, she has held several executive positions in gaming operations and guest service at some of the leading casinos in the country. Prior to joining Yellow Brick Road Casino, Segars was VP of slot operations at MGM Resorts Springfield, an integral member of the leadership team during its grand opening in 2018. She was responsible for developing and implementing standard operating producers and new employee training. Segars also spent more than a decade at Mohegan Sun Pocono and 12 years prior to that at Harrah’s Casino & Hotel, gaining expertise in all areas of casino gaming, including slot and table game operations, player development, and guest relations. The Oneida Indian Nation also announced that DAN JONES, Yellow Brick Road Casino’s first general manager, has been named director of guest experience for all of the Oneida Nation’s venues.

MARY ZIELINSKI has been named assistant VP of the MVHS Medical Group. She previously held the position of regional administrator at Upstate Services Group in Albany, where she managed the operations of four skilled nursing facilities. Prior to that, Zielinski was an administrator for Upstate Services Group, Capstone Center for Rehabilitation and Nursing Center in
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MARY ZIELINSKI has been named assistant VP of the MVHS Medical Group. She previously held the position of regional administrator at Upstate Services Group in Albany, where she managed the operations of four skilled nursing facilities. Prior to that, Zielinski was an administrator for Upstate Services Group, Capstone Center for Rehabilitation and Nursing Center in Amsterdam, New York, where she was responsible for organizational development. She earned a master’s degree in health-care administration from Utica College and a bachelor’s degree in human development from SUNY Oswego.
Oswego Health has hired MEAGHAN PRIMM, M.D. and ANDREW ROGALL, M.D. for its Fulton PrimeCare office, where both will deliver care to those of all ages. Both Primm and Rogall recently completed their family medicine residency at Louisiana State University (LSU) in addition to receiving their medical degrees from Saba University, School of Medicine, located
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Oswego Health has hired MEAGHAN PRIMM, M.D. and ANDREW ROGALL, M.D. for its Fulton PrimeCare office, where both will deliver care to those of all ages. Both Primm and Rogall recently completed their family medicine residency at Louisiana State University (LSU) in addition to receiving their medical degrees from Saba University, School of Medicine, located in the Caribbean Netherlands. Rogall was also chief resident for two years, while at LSU.

DERRICK PRATT has joined the Erie Canal Museum in Syracuse as museum educator. He will identify and implement opportunities to grow the institution’s education services for all audiences, and provide new programs that share the history and impact of the Erie Canal with classroom students, adult learners, travelers, and all Central New York residents. Pratt
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DERRICK PRATT has joined the Erie Canal Museum in Syracuse as museum educator. He will identify and implement opportunities to grow the institution’s education services for all audiences, and provide new programs that share the history and impact of the Erie Canal with classroom students, adult learners, travelers, and all Central New York residents. Pratt previously served as director of programs at Chittenango Landing Canal Boat Museum. He earned a bachelor’s degree in adolescent education with dual majors in social studies education and history from SUNY Cortland. Pratt is currently pursuing a master’s degree in museum studies at Syracuse University.

Syracuse Athletics, Galaxy Media announce new video streaming network
SYRACUSE, N.Y. — Galaxy Media Partners LLC and Syracuse University (SU) announced they have teamed up on a new 24/7 video streaming network, called Twitch.TV/CuseSportsTalk.

AmeriCU Credit Union president and CEO to retire in 2020
ROME, N.Y. — Mark Pfisterer, president and CEO of AmeriCU Credit Union, announced he plans to retire in 2020. His retirement date will be finalized
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