Editing 76-17-A5 (section)

= Tax Shift =

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=== Transcript ===
Organized labor -- or at least the ruling hierarchy of labor -- has been
supporting candidates and office holders who proclaim the tax burden should be
shifted to corporations. This particular bit of demagoguery is echoed by labor
leaders who profess concern for the workers they represent. They contend the
tax burden on individuals would be lightened if business paid its "fair share".

Not too long ago the overlords of labor were shocked and angry that corporate
truces had fallen from 23 percent of the total tax to only 17 percent. They implied,
of course, that business had somehow evaded its proper tax obligation. The truth
is that business profits, as a share of national income, had dropped so far that
by rights their taxes should only have been 8 percent of the total tax. In
other words, tax law changes had increased their rate. And, of course, business
taxes are paid by you the consumer.

The labor tycoons should reverse course if they really want to serve the
workers of America. Through their pension funds, employees of American business
today own at least 25 percent of its equity capital.

As these pension funds grow, it is possible that by 1985 (and possibly
sooner) worker ownership will have passed the halfway mark and in another 10 years
should top two-thirds of the equity capital. This means, of course, shares of
common stock, plus a possible 40 percent of corporate bonds.

According to Peter Drucker, the economist, the pension funds own control of
practically all the 1,000 biggest corporations in America. More significantly
they hold what socialists call "command position" in the 50 largest non-industrial
companies, banks, insurance, retail, communications and transportation. Whoever
controls those, controls the rest.

Here really is the answer to Karl Marx idiocy. American workers (in a kind
of people's capitalism) now own, through their retirement funds, more industry
than Castro has nationalized in Cuba.

And, before anyone starts to take bows for this little known phenomenon,
the man responsible was the chief executive officer of General Motors. It was
in April of 1950 that Charles Wilson proposed a pension fund for G.M. workers
to the U.A.W,, whose leaders were less than enthusiastic. They wanted a
governmental social security.

Fortunately, the rank and file members had more sense than their leaders.
The plan started operating in October of 1950. Within a year, 8000 such plans
had come into being; all copying the unique feature Wilson had insisted on;
namely, that the fund would be an investment trust, investing in stocks. He
opposed, however, investment solely in the company employees worked for. He
wisely said the workers shouldn't put all their eggs in one basket.

Now, about taxes. We have a double system. The corporation is taxed up
to 48% -- almost half its profit. Then, when the stockholder gets his share he
pays another tax -- the income tax on t hat already taxed profit. Pension funds
are tax exempt . Organized labor -- if it truly represented its members -- would
demand an end to this double tax. Don't tax the corporation. Tax the individual
share owner when he gets his dividends. In the case of the pension funds, they
would almost double their income and it would be tax free. 

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=== Details ===
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<TR><TD WIDTH="150">Batch Number</TD><TD WIDTH="150">{{PAGENAME}}</TD></TR>
<TD>Production Date</TD><TD>07/??/[[Radio1977|1977]]</TD></TR>
<TD>Book/Page</TD><TD>[https://www.reaganlibrary.gov/public/2024-07/40-656-7386263-014-006-2024.pdf#PAGE=7 Online PDF]</TD></TR>
<TD>Audio</TD><TD></TD></TR>
<TD>Youtube?</TD><TD>No</TD></TR>
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===Added Notes===

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