I noticed my back wheels tilt out as do other bugs I see. What causes this and whats the fix. (shocks to big pushing arm down?)

No fix.

That's a characteristic of a swing axle Bug.

Less weight and the rear wheels will toe in at the bottom.

More weight and they'll toe out at the bottom.

Heavy duty shocks and tuning the spring plate may help some, but it's something inherent in the pre-IRS rear drive set up.