Thursday, July 2, 2009

Corporations Don't Pay Taxes

It's one in a long line of stupid, leftist, class warfare mantras often repeated by leftist, socialist politicians along with their leftist, socialist propagandists in the main-stream media. It usually goes something like this: "We're going to make those big corporations pay their fair share. It's about time somebody stood up to big tobacco, oil, pharmaceuticals, fill in your favorite villainous capitalistic enterprise here."

And people buy it.

My friend Tom Sawyer at The River is a lot less charitable to Democrat voters than I am. He thinks they are all stupid. While I don't agree, I have to admit that the fact that this little ploy always seems to work makes me wonder if Tom is right.

Corporations don't pay taxes.

I know, I know, I know. You point out to me that they collect and pay sales tax. Yes, they do. They also are responsible to pay a lot of other taxes in the form of fees and regulatory sanctions most of which we don't even know about.

I know.

But I'm still telling you that corporations don't pay taxes. Now, think with me for a minute.

One, corporations are not amorphous, impersonal entities. Corporations are owned by individuals. A tax on a corporation is a tax on the individuals who are shareholders in that corporation. Some of them are businessmen. Many of them are simply people who have retirement money wrapped up in mutual funds. They are teachers, doctors, factory workers, small business owners, salesmen, tradesmen, you-name-it. Average Joes. Raising taxes on a corporation is raising taxes on average Joe.

Two, a tax on a corporation doesn't just affect the shareholders, it affects the employees. Money that could have been used to give pay raises, bonuses, vacation pay, health benefits, you name it, to employees must now be diverted to the government. Hit the corporation with new taxes and you are just taking money away from the people who work for that corporation.

But number three is the real kicker. I really want you to pay attention to number three.

Three, when you tax a business, that business simply passes the tax burden on to the consumer in the form of cost increases. This is such a no-brainer I don't know why I even have to post about it. When the federal government taxes "Big Oil", "Big Oil" just raises prices at the pump and guess who has to pay those tax increases on "Big Oil"? Yep. You do.

When you voted for a Democrat so he could make "Big Oil" pay its fair share you really socked it to "Big Oil" didn't you.

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