Duvall & Associates, Inc.
BUSINESS ADVISOR NEWSLETTER
 

 Less taxes lead to more money for investors

- by Alan Duvall 

Published in Dayton Daily News  September 9, 2007 

“There you go again.”  Ronald Reagan 

More, more, more.  Congressional response to any pending issue.  

Perhaps, if Congress would just step back and truly reflect in a non-partisan environment – it just might conclude “less” may actually prove to be “more”. 

Today’s business world is truly global in nature.  And like flowing water – companies seek the lowest level of aggravation.  So it is businesses tend to reside in areas of low taxation and low regulation. 

When American corporate leaders lost ethical compasses, Congress enacted the CPA full-employment act known as the Sarbanes-Oxley Act.  Result – Since its passage, the U.S. has experienced a severe decline in Initial Public Offerings as new companies head overseas to avoid costly regulatory and legal issues. 

Perhaps, if left alone – the mere specter of witnessing guilty CEO’s escorted to jail would be enough to sober fellow executives into towing ethical lines.  The system eventually worked without need for over-regulatory SOX relief. 

When investors abandon companies mired in the sub-prime loan fiasco – perhaps crashing stock prices and bad debt write-offs will provide adequate impetus to force managers to tighten credit standards – without additional regulatory measures from Capital Hill. 

When the government budget bleeds red – perhaps reduced spending should supplant cries for increased taxes.  Advocates of the Laffer Curve correctly point to the fact reduced tax rates actually increase long-term government revenues as proven by recent year experiences.   

America is now saddled with corporate tax rates among the highest in the world, leaving domestic companies at a severe disadvantage in world trade.  Reduced rates would increase competitiveness and leave more dollars in the hands of workers and investors. 

“I’m going to take more from you...I want too much, too much.”  Dave Matthews Band

Alan Duvall is a certified public accountant in Dayton.  Contact him at Alan@Duvallcpa.com.  Previous articles archived at www.duvallcpa.com.