REPORTING FOR DUTY
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May
4
[via Gateway Pundit] “Social justice” proselytizers lick their chops at the idea of closing “corporate tax loopholes” and finally getting those evil corporations to pay their fair share of the taxes the federal government extracts from our society every year.
The tax system is “full of corporate loopholes,” Obama said at the White House today, as he outlined the plan along with Treasury Secretary Timothy Geithner. The tax proposals, which will be part of a detailed budget the administration releases later this week, would raise a total of about $210 billion over the next decade. [LINK]
Yeah! Go get em. Get those greedy business owners.
The only problem with that is corporations do not pay taxes. They transfer them. Every single tax charge a company pays is built into the cost of their good or service. Higher taxes on corporations really means higher taxes on the consumer.
President Obama is not a moron. He’s a very smart man. He knows he is raising taxes on consumers when he raises taxes on corporations.
It is a monument to ignorance that anyone would allow themselves to be whipped up by the government into an anti-corporate mob, demanding higher taxes on themselves.
It is a monument to cynicism that any elected official would promote and manipulate this ignorance. They must sit back and laugh at how well it’s working for them.
As the economy continues to decline under the weight of an ever-expanding tax burden, will the Socialist-Progressive Democrats (SPD’s) institute price controls so corporations can’t pass the costs along? We bet there are “social justice” proselytizers licking their chops over that, too.
Comments
5 Comments so far
I understand and agree that closing loopholes and increasing taxes burdens the end user (consumer). In “The Continentalist”, April 18, 1782 Alexander Hamilton states, “Experience has shown that moderate duties are more productive then high ones. When they are low a nation can trade abroad on better terms, its imports and exports will be larger and duties will be regularly paid…” He even explained “The maxim, the consumer pays duty, has been admitted in theory with too little reserve; frequently contradicted in practice.” Business might not pass on the total cost of the tax to the consumer because they are still beholden to the the laws of supply and demand. If the elasticity of the demand is not sufficient to cover the new expense the business must make up the difference in decreased profits. Also, von Mise in “Planning for the Future: let the markets work” explains the there are those in society that do not appreciate the role of profits play and then need for entrepreneurs.
[...] = Response to Obama’s Unconstitutional Thuggary: I have been following this story closely, as I despise Obama demonization of corporations, their executives, and the investor class and want no part of toxic class warfare. In a nutshell, it seems Obama is threatening Chrysler [...]
it is true that corporations do not pay taxes–they simply collect the tax & pass it along to the government. when the corporate tax rate increases, corporations have 3 options for dealing with it:
1. pay the difference from the profits. but that takes from the shareholder (i.e. the consumer, i.e. the individual).
2. raise the price of the product or service. it should be easy to see that the individual is, again, bearing the burden.
3. cut costs. this could mean lay-offs or benefits cut, both of which affect the individual again. what about buying cheaper components? that may work, but then the original supplier is affected & what happens to him? his employees (individuals) feel the crunch.
if we truly want to close the loopholes, the FairTax is the superior way to go. http://www.fairtax.org
protect the world’s smallest minority group–the individual. FairTax now!
The title of your post is wrong. The progressive mob knows perfectly well that taxes pass through. They see taxes simply as a weapon to attack their enemies and reward friends. The damage done to corporations and consumers is seen as a plus.
Progressives are about clever tricks to snatch power and not about engaging in discourse or in finding ways to improve the quality of life.
well said, Mr. Delaney.
i found this passage from Mark Levin’s “Liberty And Tyranny” particularly perspicuous:
“Eliminate the progressive income tax…for its purpose is to redistribute wealth, not fund the constitutionally legitimate functions of the federal government.”