Rep. Duncan Hunter: Small Businesses Should Pay No Taxes, ‘Period’
Congressman addresses seminar, urges attendees to become a corporation, but not in California.
Photos
Videos
Rep. Duncan D. Hunter told a packed room Monday morning that small businesses “literally should be paying no taxes.”
His 25-minute talk came at a small-business seminar at the La Mesa Community Center sponsored by the state Board of Equalization, the agency that collects state sales and use taxes.
Speaking before 250 small-business owners and those interested in starting a business, the 52nd District Republican said: “If you’re making a product in the United States, you should be tax-free. Period.”
After the expo, he told La Mesa Patch that “there is legislation out there, and I’m on it” to make his vision happen.
Joe Kasper, Hunter’s spokesman in Washington, promised Monday night to provide details on the bill Tuesday but said “the concept of zeroing taxes for manufacturers is nothing new. The idea is to restore manufacturing and establish a foundation that encourages production. The tax code now discourages domestic production—as evidenced by the record number of businesses going overseas or buying foreign-made products.”
Hunter echoed that theme Monday when he said that America will never escape its current economic troubles, not even in “the next 20, 30 or 50 years,” unless Americans buy U.S.-made products.
He used the example of a $6 Chinese-made Walmart hammer and a $10 U.S.-made hammer.
“The American hammer is $4 more, but guess what?” he said. “Your neighbor is employed by that hammer company. … Until that connection is made, we’re screwed. We’re out of luck.”
After noting that big corporations like Qualcomm have “thousands of lawyers and accountants,” who know every angle for avoiding taxes and ways “to keep the U.S. government off their back,” Hunter said: “My feeling is this: Become a corporation.”
But he advised the audience: “Don’t become a California corporation. Become a Nevada corporation or something [else because you’ll] be able to get out of a lot of things that the state and federal government do to us.”
Hunter also called for deregulation. But he drew a distinction between loose rules for Wall Street—“which allowed guys to make $40 million bonuses, and take your money [via] scams and walk away scot-free”—and rules for Main Street.
He said that until recently—when President Barack Obama had the EPA “roll back” the rule—companies could be fined $5,000 a day for spilling milk on a factory floor, “since spilled milk is considered an oil spill.”
“There’s no way you can keep up with all the rules and regulations that the city, the state, and the federal government put upon you by doing one of these seminars a year,” he said. “It’s impossible.”
He said his “growth agenda” for the economy involved evening the playing field and “deregulating from the bottom up.”
He also said government-built infrastructure projects, like those urged by Obama, won’t work either.
Having described how it once took 1,000 people to build a 5-mile stretch of road and now it took 50 because of heavy machinery and automation, Hunter said: “Even if you build a million miles of freeway tomorrow, you’re not going to hire the same number of people you used to hire.”
He said America can “fix every bridge, [but] it ain’t going to do it. And there’s not enough money to do it anyway. You gotta grow.”
In an apparent nod to anti-corporate sentiment, Hunter said the most recent fiscal quarter saw “the highest corporate profits since 1950 for American corporations.”
He noted the “big disparity” between high profits and high unemployment—“between the big guys and everybody else who is out there trying to work”—but said corporations tell him this is a result of companies being able to lay off workers while retaining productivity of the remainder.
So Hunter said reducing regulation—and ending taxes—would help small business compete with big corporations.
The five-hour seminar was set up by Michelle Steel, the elected vice chair of the Board of Equalization’s third district, which covers 8 million Southern Californians.
She wasn’t present, but her chief deputy, Louis Barnett, spoke on her behalf, calling her an “elected taxpayer advocate.”
“If the state of California requires you to follow the law and pay the taxes you’re obligated to collect and pay, then Michelle feels that it’s incumbent upon the state Board of Equalization to let you know what the law is and how you can comply with it,” Barnett told the group.
Arie Dana, a spokesman for the board, said 372 people had registered for the seminar as of Friday.
Among those present was David Secor, who parked his 1962 Volvo with “Man vs. Machine” sign on Memorial Drive below the community center. Secor is a Democrat planning to enter the new 50th Congressional District race against Hunter in 2012.
Secor said he introduced himself to Hunter before the event, urging the congressman to take part in a series of Town Hall meetings next year. Secor said Hunter told him: “I look forward to it.”
After Hunter, about nine speakers followed until closing at 2 p.m. Agencies staffing tables and making remarks included the Franchise Tax Board, IRS, state Employment Development Department, Small Business Administration and the county.
Hunter offered his office’s services as well, saying he can help navigate federal agencies and get people SBA loans. He twice gave his El Cajon office number: 619-448-5201.
“I hope that my office is flooded with questions and phone calls over the next week on anything you want to ask,” he said.
Hunter Robbins
8:51 pm on Monday, November 7, 2011
As a small business owner, I have to say that I disagree with the Congressman. I think his economic ideals are quite irresponsible, but that's what happens when you are only interested in appealing to populist politics.
David B Secor
3:42 pm on Wednesday, November 9, 2011
I added 2 photos (18, 19). The first is regarding a McClatchy Poll of small business owners and shows that neither taxes nor regulations are crippling small businesses. The 2nd shows the real problem. They need CUSTOMERS! We need a national effort to put people back to work. Only when our citizens have decent jobs that pay a living wage can they patronize the small businesses in their areas. Mr. Hunter and his extremist friends blocked the American Jobs Act which would have put 400,00 teachers,police and first responders back to work. But to ask for a tax increase of 1/2 of 1% on income OVER $1 million to pay for it was just asking too much for Mr. Hunter, whose pledge to Grover Norquist and his defense of the 1% supercede his pledge to the Constitution and his duty to the working people, the 99%, in his district.
James Alan Jones
10:00 pm on Monday, November 7, 2011
It's basic republican dogma...I have been hearing about " trickle down " economics for 30 years. It has been a VERY successful strategy for the RICH. If the rich people actually did spread the wealth around it might be something to consider. But facts are facts. The rich have gotten richer and the poor and middle class have seen their wages and way of life flat line. The fact that ANYONE actually thinks that there is any group in this country that should not contribute, either is woefully misinformed or is a member of that group that wants a free ride.
Things I Learned
10:33 pm on Monday, November 7, 2011
Rich people do not buy anything. They store all their money in mattresses just to keep it from poor people who might benefit were the money invested.
Ken Stone
10:25 pm on Monday, November 7, 2011
Huffington Post picked up this story: http://huff.to/rEeaG8
David B Secor
11:38 pm on Monday, November 7, 2011
Mr. Hunter made the point that major corporations pay no taxes because they have a phalanx of tax lawyers and (congressionally approved) loopholes to not only pay no taxes, but also get large refunds. His answer - rather than reforming the tax code to end special tax breaks and close the loopholes is to suggest that small businesses pay no taxes as well. The real message - Here's a joke to take your mind off the corporate (and congressional - and administrative -see Korean trade agreement) agenda to destroy the middle class.
David B Secor
11:43 pm on Monday, November 7, 2011
In the previous post, I didn't mean to suggest that Hunter voted for the Korean trade agreement. To his great credit, he voted against it. It was the majority in Congress and the President who supported the agreement, which, by bipartisan analysis will cost 159,000 American jobs.
Things I Learned
1:10 am on Tuesday, November 8, 2011
There is no such thing as comparative advantage. In the worst economy since the Great Depression we should learn from the wisdom of our forebears and enact protectionist policies like Smoot-Hawley which did not have a domino effect and drag the entire world down with it.
The Democratic Socialist-led Economic Policy Institute is a "bipartisan" progressive think-tank whose February 2010 working paper claiming 159,000 lost jobs was not overtaken by subsequent modifications and compromises in the finalized Korean trade agreement (KORUS FTA) that brought even labor unions like the United Auto Workers on board. There are no other studies suggesting as much as a 280,000 net US job increase.
There are also no geopolitical consequences to boosting South Korea's economy such as laying the groundwork for American troop reduction along the DMZ or fostering resilience and absorptive economic capacity for when North and South inevitably reunite.
America should unilaterally repudiate this treaty as South Korea will not simply increase trade with its other FTA partners like India, China, the EU, the ASEAN countries, Japan, Peru, Columbia, Canada, Australia and New Zealand at our expense.
We can afford to go it on our own. The math is simple:
http://www.youtube.com/watch?v=xnOWQd-TPlE
Selina Forte
8:41 am on Tuesday, November 8, 2011
Become a corporation to avoid paying taxes, but don't do it in California. That is a big reason why he should not be in office. How is sending companies to other states going to benefit the people in his home state? And then small businesses should not pay any taxes. Corporations don't pay taxes. Someone is going to have to pick up the slack and I am guessing it will be all of us if Mr. Hunter has his way.
Things I Learned
11:05 am on Tuesday, November 8, 2011
Businesses never incorporate in one state and conduct operations in another. The problem with Duncan Hunter isn't that he doesn't realize that Nevada corporations still have to pay California taxes if they do business here. The real problem is that he wants to democratize access to tax and legal structures so as to put small business people on a level playing field with the multinationals, furthering his goal of keeping jobs in America (per Dave Secor). That will hurt all of us who buy things.
Margie Logue
12:47 pm on Wednesday, November 9, 2011
Hallelulah. People are finally coming out and voicing their concerns about Mr Hunter. Previously, The Patch looked like a cheering section for him and anyone who didn't agree with him was attacked. Like many other polititians, what comes out of his mouth sounds good, but if you think about it, the reasoning is faulty. Too many people in East Country do too little thinking. This has got to change. Politians need to be held accountable for what they say and do. There's a rift in this country between Democrats and Republicans, when the people should be united against a few very rich people (the top 1%) who own 40% of the wealth and take home 24% of the National Gross Income (the bottom 80% take home 7%) This country was formed By the People, For the People. People, not corporations. People, we have to take back our country by getting involved in every decision that affects our lives. If we don't, corporations will decide things for us
James Alan Jones
3:03 pm on Wednesday, November 9, 2011
I couldn't agree with you more Margie...Trust me...as a Democrat living in Santee, I always feel like an outsider. Maybe if 1 good thing can come from this awful economy is that the folks at the middle and the bottom will come together and realize that the big corporations don't look at us as right and left...they look at us as worker ants to be stomped on if we rock the boat. Something THEY need to understand...there are a LOT more of us than there are of THEM.
Batman
3:50 pm on Wednesday, November 9, 2011
Be careful what you wish for.
Yes, Obama and his gang will take everything the top 1% has, it's only fair.
And then they will take everything the top 5% has. And then they will take everything the top 15% has. And then they will take everything the top 25% has...
And finally, the top 1/10% will control 99% of the wealth, just as it is in every marxist nation in the world. IT"S ONLY FAIR!
David B Secor
3:53 pm on Wednesday, November 9, 2011
There will be an Amendment to the Constitution proposed in the next Congress to correct the 5-4 decision by the Supreme Court in the Citizens United case. If you have any doubt that the extremists who control the Republican party are in the pocket of corporate America and the 1%, see how many of them support the amendment which will define a "person" as an individual human being, and not a corporation. By their fruits you shall know them.
Things I Learned
4:12 pm on Wednesday, November 9, 2011
When the extremists at Citizens United argued that their movie should no more suffer prior restraint than did Michael Moore's Fahrenheit 9/11, only extremists like Justice Kennedy agreed that "If the First Amendment has any force, it prohibits Congress from fining or jailing citizens, or associations of citizens, for simply engaging in political speech."
Some fringe extremists like the ACLU also thought the law was constitutionally invalid on its face, but they were extremely fringy:
http://www.aclu.org/free-speech/citizens-united-v-federal-election-commission
Batman
4:04 pm on Wednesday, November 9, 2011
Then why don't we define the unborn as human beings instead of just "tissue".
Yes, the Bible says: "You can judge a fruit by his tree", or something like that.
Sharkey
6:01 am on Thursday, November 10, 2011
Republicanism ; 'Corporation s are people too!'
Except when it comes to paying taxes or getting executed in Texas.
keith
10:53 am on Thursday, November 10, 2011
How in the name of God did this guy get elected?!!
Kevin George
11:23 am on Thursday, November 10, 2011
More people voted for him than Ray Lutz.
Things I Learned
11:32 am on Thursday, November 10, 2011
http://www.youtube.com/watch?v=bcYppAs6ZdI
Kevin George
1:26 pm on Thursday, November 10, 2011
Thanks! I'll be her all week.
Try the veal........... and tip your waiter.
Batman
4:27 pm on Thursday, November 10, 2011
You can blame me in part for that. I put up most of his big signs.
Doug Curlee
2:28 pm on Thursday, November 10, 2011
kevin.. i actually have a couple of tips for you..
never play poker with a man named "lefty"..
and never ewat at a place called "mom's"..:-)
doug
Things I Learned
2:36 pm on Thursday, November 10, 2011
Doug,
You might enjoy "The Right Kind of War", a novel about the Marine Raiders by a guy who lived through it. It's a little uneven, but still fascinating.
Doug Curlee
4:19 pm on Thursday, November 10, 2011
thanks.. i've read a lot about the raiders and their allegedly communist leader, but i somehow missed that one.. i'll find it..
doug
Things I Learned
4:44 pm on Thursday, November 10, 2011
OK, I may have actually learned something. I knew Carlson adopted some commie guerrilla lessons, but was he really accused of being a symp? Unfortunately that's not surprising, but it is sad.
Doug Curlee
6:23 pm on Thursday, November 10, 2011
yes, he was accused of it by some pentagon brass.. but it seems his methods actually worked for the raiders, so the accusations never gained a hell of a lot of credence..
still, there were those high up in the military structure of the time who never forgave him..
his men, on the other hand, would have killed for him.. in fact, they did..
doug
Things I Learned
8:51 pm on Thursday, November 10, 2011
Well...Happy Birthday, Marine Corps!
http://www.kansan.com/news/2011/nov/10/marine-corps-celebrate-236th-birthday/?news
And thanks to all who've served!
Lisa
5:21 pm on Sunday, November 13, 2011
This was a poorly written piece with a lot of out-of-context sound bites. I do not agree with Hunter on several points (he has very little business experience so he is only getting "horror stories" to review to base his opinions on...) - but I do agree on several things stately poorly in this article. 1) that this state and county is very business-unfriendly (just look as the fiasco it took to get the yoghurt shop up and running in our little town and you see the layers of bureaucracy that kill new jobs here), and 2) there should be a tax-benefit to small businesses because in creating more jobs and commerce, they are in fact increasing overall tax revenues to the state. Entrepreneurship needs to be nurtured here... otherwise many of us are considering moving to another state to do business.
This article could have been presented with a conversation about how to improve the environment for small business, rather than a slip-shod overview of this meeting. We need some substance to talk about on this topic, because if we do not take our state's situation with small businesses seriously we are going to become the next Michigan having a decade of depression. At least Hunter seems to want to help. His ideas may not be ideal - but it's our responsibility to give him better ones. At least he is listening - everyone else in this state is deaf to small business owners.