It appears that all Democrats are onboard to raise corporate income taxes and increase regulations if they take control of Congress and the Executive Branch. Apparently, every Democrat, including Bernie Sanders, believes that corporations are not paying their fair share of taxes. Either most Democrats are economic illiterates; or, they are perpetrating a fraud on the American people.
Although there are many economic illiterates in Congress, like newly elected Alexandria Ocasio-Cortez and former Congressman & Presidential Candidate Beto O’Rourke, many other members realize that corporations do not pay taxes; and, are more than happy to perpetuate this fraud on the American public, which is supported by much of the political establishment, many in academia, and, the mainstream media.
Think about it, how can property or an inanimate object, which includes a corporation, pay taxes? Only people pay taxes; corporations are efficient tax collectors.
In the February 22, 2014 issue of The Economist, far from a conservative or libertarian magazine, they stated: “The big question is whether it makes sense to tax corporate profits at all. A company is a legal entity; if it is taxed, it must pass it on.” Corporations do not pay taxes, only individuals pay taxes. When a corporation is taxed, either: (1) the stockholders absorb the tax, through a reduction of dividends and/or company value; (2) employees are penalized, by cancelling raises or bonuses and not hiring new workers; and/or (3) customers pay the tax through an increase in the cost of the products or services purchased from corporations.
Ultimately, all taxes are included in the cost of the products and services purchased from corporations. Therefore, contrary to what you may hear from the media, academia, and democratic politicians, it is the middle-class and poor that suffer from taxes imposed upon corporate profits.
The Economist has even taken the position that “the rich world needs to cut red tape to encourage business.” The cost of government regulation represents another tax or fee ultimately passed-on to the middle-class and poor, who use the products and services provided by corporations. In addition, because of the high cost of regulation, the middle-class cannot afford to open new businesses that compete with the large entrenched companies.
Although President Trump has made some major strides over the past several years, the regulatory and tax environment that exists today keeps the middle-class from being able to start new businesses; they are unable to compete with the entrenched large corporations, which have huge armies of attorneys and accountants necessary in an over-regulated and over-taxed environment.
Furthermore, most senior executives of large corporations are democrats! Why? Because they do not want competition; they want to maintain their exorbitant salaries & benefits; and, they are able to include the higher taxes and cost of regulations in the products and services provided by their companies.
Only people pay taxes, not corporations. The corporate income tax and regulatory environment is a hidden stealth tax that negatively impacts poor and middle-class Americans; and, stifles the creation of small businesses.
If enough Americans begin to understand this fraud, the politicians, whether they are outright lying or just plain ignorant, will be voted out of office.
Dum Spiro, spero—While I breathe, I hope.
Slainte mhath,
Robert G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.
