Who Pays?

Conservatives talk about the need to reduce corporate taxes because they claim the corporate income tax of the United States is too high in comparison to other countries.  Their argument is that in a global economy, businesses will move out of the country to lower tax havens.  To some extent, taxes have probably contributed to some degree of outsourcing but there is another factor to be considered in this equation.  Who is supposed to pay the costs of protecting American corporate interests and personnel when a company leaves the shores of the United States?  At present, a significant portion of the defense budget goes towards protecting American citizens and American business interests abroad.  While taxes are a lot lower in Ireland, for instance, what expense has the Irish government incurred to protect the sea lanes or pay for air traffic control necessary to move products made in Ireland to the markets in the United States?  When the U.S. Navy protects the Straits of Hormuz to permit Exxon/Mobil oil tankers to pass through on the way to US refineries, who pays that expense?  Who pays the costs of the navy’s protection from the threats of Somalia pirates.  The answer to these questions is the American taxpayer.  U.S. corporate interests are protected by funds from American taxpayers or funds borrowed in the name of American taxpayers.  The United States is spending one-third to one-half of the entire budget on security and a significant portion of that expenditure goes towards insuring the safety and protecting the interests of American citizens and American corporations outside of the borders of the country.  For too long, many businesses and individuals have gotten a free ride in the form of lowered tax rates and it is past time those individuals and businesses begin to pay their way.