Monday, October 22, 2012

Corporations Cannot Pay Taxes

It is not possible to tax a corporation.  It is possible to destroy a company through taxation, but never to gain revenues by taxing a corporation.  Corporations get their money from customers (or subsidies).  Money that comes from customers cover taxes.  When you buy a Hershey bar, you have covered all of Hershey's taxes.  The idea that "corporations should pay their fair share is utterly delusional.

So this paragraph in this article is economically ignorant:

When the airlines kept ticket prices down by shifting $12.8 billion to baggage fees, they also saved almost $964 million in federal taxes they would have owed if they had increased ticket prices by that amount.

No, the feds simply mulcted a billion less from consumers through one channel, and will mulct it instead through another.  The article goes on to say just that. The only way taxes can be avoided is if the money collected is not spent.  If we eliminated the agency that spends the money, the FAA, then we would avoid taxes, and gain the benefit of tens of thousands of people released into the economy to provide a benefit.

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