Monday, March 10, 2014

Why Corporations Are People

Liberals were infuriated by the Citizens United decision by the Supreme Court. They claimed money is not free speech, but this is not true. Free speech has been expanded by liberalism to include freedom of expression (i.e. flag burning). And nothing better illustrates a person’s expression than buying gifts for others. At the same time liberals also claimed that corporations are not people. But this is not true either.

In fact, some liberals compared the Citizens United decision to slavery and the Dred Scott decision. First, Dred Scott and slavery is an issue dealing with people. Slaves are people and slave owners are people. Secondly, slavery is defined as “The state of one bound in servitude as the property of a slaveholder or household.” How does this apply to corporations? It does not, corporations do not own people because they have to pay people for their services and people are free to change jobs. This slavery comparison argument actually supports the premise that corporations are people.

Corporations are not only made up of people but the government treats corporations as people. Corporations are taxed like people and inundated by laws, rules, and regulations just as individuals. For instance, like individuals, corporations can sue other individuals or corporations and vice versa. But the biggest evidence suggesting corporations are people is that they pay income taxes. Corporations will pay 28% of the tax revenues collected by the federal government in 2014. Individuals will pay 63% of the income tax, but remember, a large portion of these people earned their taxable dollars by working for private sector companies.

This is what distinguishes corporations from organizations and groups which are generally charitable, exempt from federal income taxes. In fact, many of organizations and groups are dependent on funding from not only individuals, but corporations. Planned Parenthood, The People for the Ethical Treatment of Animals (PETA), and Unions are examples of organizations that operate and are treated differently by the federal government than individuals and corporations. Planned Parenthood, PETA, and Unions are allowed to donate monies to political parties and candidates while at the same time receiving federal taxpayer dollars. This is conflict of interests and generates a vicious cycle of money. On the other hand, corporations and individuals contributions to political parties may be on a quid pro quo basis, but they earned their monies and pay taxes on it and therefore should be entitled to spend it anyway they see fit.

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