Consumers Pay Corporate Taxes
The Top 1% Got The Biggest Break
After the historical tax cut by President Donald J. Trump, one of the most frequent arguments made by the left is that all of the major cuts went to the top 1%, and mostly the corporations. Corporations, by the way, that they claim are evil and greedy. Minority leader Nancy Pelosi and her cohorts on the left all but claimed that the tax cuts would be the end of the world.
Her exact word was, of course, Armageddon.
All the while it has been reported by hundreds of companies that they will pay workers bonuses, and some have even raised wages. Something that flies in the face of every single liberal tenet that the rich and the evil corporations are simply greedy, evil hoarders of money.
But do not forget, they are also the people that pay the salaries we enjoy, high or low, that put gas in our cars, food on the table, and roofs over our heads.
Companies have long contended that part of what holds them back, besides labor costs which they do often cite to be fair, are the high costs of taxes and regulation. It takes armies of men and women to sift through all of the legal gobbledygook and tax laws to make sure everything is being done above board. Money that could easily be redirected to product research and development, marketing, innovation, and hiring more workers to produce the goods and services they are selling.
Now that Trump is in office, and many regulations have been minimized, and tax burdens have been lowered, companies are giving back.
But of course, it is still not good enough for the democrats and liberals. In fact, they will tell you its a rouse. Nancy Pelosi responded by saying that while it is nice that the companies are offering raises and bonuses, they are crumbs.
That being said, I am not exactly sure what the democrats were offering on their side, after eight years of Obama which could not reach 2% GDP growth, that would amount to more than crumbs.
Consumers Pay Corporate Taxes
And what about taxes? Okay. So we decide to tax those evil corporations to the hilt. I mean soak them for every penny we can get. Who pays those taxes?
Okay. Yes. Those evil corporations do write the check. I'll let you have that. But one thing that always gets missed is one major point.
Businesses do not actually pay taxes even if they write the check to the government.
The fact of the matter is this. All the businesses actually do is collect the taxes the government imposes on them, and passes all of those taxes onto the consumer in the form of higher prices. A tax, like keeping the lights on and paying the workers, is simply a cost of doing business. As a business, they are there to make a profit for their shareholders. Any and all costs of doing business are passed along to those who buy their goods and services.
It really is that simple, folks.
You can make the taxes as high as you want. The simple truth is that ultimately you and I will pay them. We will pay it indirectly through less jobs and lower wages and benefits, and ultimately will pay them through higher prices.
We may not be writing the check, but we are certainly filling the tax coiffures. We are the ones providing the money to those corporations to send the check to the government.
People on the left have long touted that corporations just get bigger and bigger and more rich than ever while the rest of the people suffer. How could this be so? I mean, they have paid all of these taxes, right? Somewhere along the line it should be slowing them down. Somewhere along the line it should be hurting their bottom line. And yet, all the while they have gotten bigger and richer despite higher taxation.
Because they have not actually paid the taxes. They built the taxes into their prices.
Which, by the way, is exactly what they should be doing.
Higher Taxes? So What
More importantly, it is imperative to note that if we want better wages, better benefits, and better prices on the goods and services we buy, we should all be for lower corporate taxes than higher ones. Will these corporations siphon off some of these cost savings ultimately? Probably. But there is still going to be a demand for their products and services, and the free markets will ultimately dictate the price. If the customers are gouged, they are going to make note and go somewhere else.
Taxes are paid by the people. No matter who writes the check. We pay the bill. There is no way of getting around this. It is all built in. If I am a landlord and the cost of my mortgage goes up, if the cost of my property taxes go up, if the cost of my lawn maintenance goes up, I am going to pass all of these costs on to my renter and at the end of the day, the rent will go up.
The renter may feel like he has won when the government tells me I have to pay more for my taxes. But in the end I simply pass this higher cost on to my renter, and who pays for it? My renter.
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