What Does It Profit a Congress to Make Law, If It Loses Our Economy?

Congress, it appears, has struggled to solve a problem. Alright I know, when has Congress ever solved a problem, as opposed to just causing them? But the real question is: how is it possible that a body comprised of individuals that include a mix of backgrounds with roughly 40% in law and 40% in business and they cannot come to grips with a legislative approach that will incent businesses to create jobs in America and that incents them to avoid overtly stashing corporate profits overseas. Now I know it would be odd to expect experienced lawyers and business-persons to have any expertise for such problems. Who would expect Congress to be able to apply any talent to crafting such legislation, nor to understanding the ramifications of allowing our tax code to either promote the out-sourcing of jobs internationally or to enable corporations to squirrel profits in overseas accounts, or both? So here we are as usual left the lame, inept and ill-conceived efforts we have come to depend upon from our Congressional representatives.

I presume someone in the Department of Treasury, maybe even someone from the IRS, has attempted to explain to Congress that efforts to make it more attractive to create jobs in the US and to have corporations treat profits originating from American as taxable under the US code rather than to foreign nations have spectacularly failed. It’s even possible that some members of Congress could have figured out that campaign funds received from their corporate contributors along with said contributors’ sage advice and counsel regarding tax law might have consequences that it would be important even essential to understand. But even if they did understand the consequences, why would they care? Their vision has a horizon that only goes as far as the contribution check which either blocks everything else from view or which demands their total intellectual capacity.

Consider the recent news item concerning GE’s 2010 corporate tax responsibility, all $0.00 of it. While GE may have made $14.2B in profits, not income, PROFITS; they don’t owe any income tax to the federal coffers. Just like you and I, GE can use the tax code to contribute a fair and reasonable share of their profits to support our nation. And Congress has been the instrument that created the means by which GE and other corporations (and you and I, of course) have been able to achieve this burden relieving accounting. How wonderful and helpful of Congress, to enact the laws that so obviously benefit our economy and nation.

And we don’t have to only look at Congress’ tax-relief gift to corporations to see the far-reaching efforts that Congress undertakes in America’s best interests. In addition, Congress has encouraged these same corporations to create jobs, not of course in the US, but in foreign countries and economies. Not intentionally I would suspect, but isn’t that a rather pitiful excuse for Congress to fall back on when they also managed the out-sourcing of American jobs and did so when it was a perfectly predictable and expectable outcome? But not to worry, Congress is on the job! In these times of economic chaos and disaster, Congress is focusing on cutting the federal budget because the country is living beyond its means. If they apply their standard skills and competencies in this endeavor, and they will, we can all rest uncomfortable in the knowledge that Congress will succeed yet again in wrecking havoc upon us.

Not only will not addressing the tax code problems that endanger our freedom and existence, but failing to act will continue to erode America’s business climate. You have to wonder how it is possible that Congress cannot see how to use this opportunity to reduce our deficit and debt, expand our economy, grow domestic jobs, and revitalize American industry. Well, wonder no longer; they’re Congress.