TAX NEWS - June 2010

Tomesic: RadioShack deal just one example of tax policy gone wild

I should have been born with the last name Inc. Not only would my life last indefinitely, I would have more rights, privileges and benefits than a mere mortal like you and me.

Corporations were born in the age of kings and queens. To induce persons to invest in the conquest of the Americas and Asia, monarchies granted special charters to share the wealth with their corporate partners.

That partnership continues today between our political royalty and today's merchant class -- investment bankers, venture capitalists and the wealthiest of society.

These select few are privileged to receive tax benefits not otherwise available to the average wage earner.

Do you receive a deduction from your gross taxable income when you buy a car, purchase a new laptop computer, vacation in Aspen or the Caymans? I rather doubt it.

But what if you incorporate yourself as a business for about $400 in filing fees to the Texas Secretary of State? Hallelujah!

Now you can deduct your retirement account; the cost of the car you drive; a portion of the payments you make for meals, entertainment and the travel you take; the expense of a medical insurance plan for you and your family; that second home in the mountains used for business; and of course, the fees for that skybox in Jerry Jones' tax-abated palace in Arlington.

These are business expenses to YOU Inc. That means instead of paying taxes on all YOU Inc.'s income at the corporate tax rate, its gross income is reduced by the cost of the "necessary" business expenses incurred paying for the car, the "business" trips, the skybox, etc.

And if you work it right, when you're not "entertaining" your business client, you can switch roles and you play the business client for the next evening on the town and let your buddy play the entertainment provider.

Of course, we can escalate these minor benefits considerably. You understand that YOU Inc. may still pay property taxes to the local government and our school districts. Unless -- yes, there really is a Santa Claus. Just ask RadioShack and Cabela's in Fort Worth; Jerry Jones in Arlington; Grapevine Mills in Grapevine; Redi-Mix in Euless. Santa gave each of them millions of dollars in benefits and tax breaks, ostensibly to move into locations in each of these communities.

This is small change compared to the charity of Gov. Rick Perry's giveaway of $363 million in public funds through his Texas Enterprise Fund. The TEF maneuvered your tax dollars into corporate coffers by "transferring" $161 million from the state unemployment insurance trust fund. Neat trick, especially after a substantial number of the companies failed to meet their required employment goals in Texas.

We live in Johnson County outside the city limits of Burleson, Lillian, Venus, Alvarado and Fort Worth. I'm offering to join with 1,000 other homeowners living in the county to negotiate with each of these cities for tax rebates and tax incentives for us to move inside the city limits.

I'd like a new SUV every three years; a rebate on city, county, school and other taxes for 30 years; and advances on a percentage of our personal income tax payments. And, like RadioShack, we want the right to re-negotiate at will.

It's time for change. Stop the bought-and-paid-for relationships between business and politicians. Demand an amendment to the U.S. Constitution precluding tax abatement scams and tax benefits for business entities that individuals do not receive.

If you're serious about a Tea Party, try some of this green tea for a change.