QUOTE: … the tax would be paid by the cows

Wednesday, August 17, 2011


Quotation of the Day…

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… is from EconLog’s David Henderson who recalls how the Herbert Stein described the failure to understand that taxes on corporations are taxes on people:

“I remember that in addressing the issue in the 1980s, the late Herb Stein said that it’s as if people think that if the government imposed a tax on cows, the tax would be paid by the cows.”

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This reaffirms my RANT about the fact that a “corporation” is a fiction for a mob of real people. WHICH does nothing but hide the taxes in costs passed along to REAL people.


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INTERESTING: Corporations are just people in disguise

Sunday, August 14, 2011


Aug 11, 8:50 PM EDT
Romney: ‘Corporations are people, my friend’
By PHILIP ELLIOTT Associated Press

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DES MOINES, Iowa (AP) — Republican presidential hopeful Mitt Romney, clearly irritated by a handful of hecklers amid supporters at the Iowa State Fair, insisted Thursday that “corporations are people,” a comment Democrats gleefully predicted would be a defining moment of his campaign.

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I’ve tried to convince folks that the correct rate of corporate tax is zero.

(I think I could make a case for a 1% tax on gross receipts so the Gooferment could collect some un-fudge-able statistics. And, since “corporations” are a creation of the Gooferment, then any Gooferment intervention is just a fee fro their existence.)

Just last night, I was in a heated discussion about Exon Mobil. Taxes paid by them is merely wealth redirected from real people via pension funds to the Gooferment.


There is some validity to the argument that executive compensation is out of control. And corporations engaging in crony capitalism are bribing politicians and bureaucrats to insulate them from competition and secure “franchises”.

Socialists always want to control everything. This is no different. Hitler, Stalin, Mai. They all need control.

We have to be clear in our paradigms and memes.

Corporations are merely a useful fiction for a bunch of people.


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