What Is the Fair Share of Taxes?
By Walter E. Williams
March 1, 2016
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Our demagogues also claim that corporations do not pay their fair share of taxes. The fact of the matter, which even leftist economists understand but might not publicly admit, is corporations do not pay taxes. An important subject area in economics, called tax incidence, says the entity upon whom a tax is levied does not necessarily bear the full burden of the tax. Some of the tax burdens can be shifted to another party. If a tax is levied on a corporation, and if the corporation hopes to survive, it will have one of three responses to that tax or some combination thereof. It will raise the price of its product, lower dividends or lay off workers. In each case, a flesh-and-blood person is made worse off. The important point is that a corporation is a legal fiction and as such does not pay taxes. As it turns out, corporations are merely tax collectors for the government.
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I have known this ever since I took my first class in Corporate Finance. And heard it repeated over and over.
“Corporations are merely tax collectors; not taxpayers. They merely pass their costs along.” Lawrence Alan “Larry” Kudlow is an American economist, television personality, and newspaper columnist. August 26, 2014 0830 on WMAL Mornings on the Mall Brian Wilson and Larry O’Connor
But for some reason, “We, The Sheeple” don’t seem to understand.
Burger King goes to Canada. Drug Companies and Banks got to the Grand Caymans. Google and Apple store their cash in Ireland.
See a pattern here.
Like the beer trucks with signs on them “This vehicle pay $11,985 in taxes.” NONSENSE! The poor bloke who drinks the beer is paying those taxes.
Every can on beans you buy in the supermarket has hidden taxes build right into the purchase price. And, don’t get me started on “gas taxes for the roads”! Another fiction. Seen the roads lately? Where did all that money go? So every product delivered by a gas powered engine (i.e., plane; train; boat; truck) has a hidden gas tax that’s being paid for by “We, The Sheeple”.
So the correct corporate tax rate is ZERO, because only REAL people pay taxes.
Ask you favorite politician about that concept!
I’m sure you’ll be told “it’s more complicated that that.” It ain’t! Argh!
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