The talk of Buffett-financed Burger King tax evasion is desultory. It is not possible to tax a corporation or business.
If a business is profitable, it has passed all paid taxes onto its customers. If you buy a hershey bar, you have paid all of Herhsey's taxes. The end-user refunds or prepays all taxes ever paid. Nothing else is possible.
So why tax corporations at all?
1. Hide the tax from the ultimate payee. Corporate taxes are stealth taxes that keep you from knowing you pay about 70% of what you earn in taxes. (How do you think we "pay" for all these wars?)
2. To disadvantage one business in favor of another, by hiding the fact you are harming one businesses customers. Capitalism needs governments to pick winners and losers. Tax codes reflect the decision of who proceeds and who is destroyed. (The power to tax is the power to destroy - Chief Justice John Marshall, 1819)
For Obama to say
Pat Buchanan advises we lower the corporate taxes to be competitive. Why not just eliminate the desultory taxes and show people what they really pay in taxes, since they are the ones who really pay the taxes?
Feel free to forward this by email to three of your friends.
If a business is profitable, it has passed all paid taxes onto its customers. If you buy a hershey bar, you have paid all of Herhsey's taxes. The end-user refunds or prepays all taxes ever paid. Nothing else is possible.
So why tax corporations at all?
1. Hide the tax from the ultimate payee. Corporate taxes are stealth taxes that keep you from knowing you pay about 70% of what you earn in taxes. (How do you think we "pay" for all these wars?)
2. To disadvantage one business in favor of another, by hiding the fact you are harming one businesses customers. Capitalism needs governments to pick winners and losers. Tax codes reflect the decision of who proceeds and who is destroyed. (The power to tax is the power to destroy - Chief Justice John Marshall, 1819)
For Obama to say
“I don’t care if it’s legal, it’s wrong.”is ever so delusional, astonishing ignorance. If it is wrong, why is it legal? (and this from the man who orders criminal invasions of other countries, and meets Tuesdays to pick who dies from a deck of cards.) It's legal because it does not matter, but in any event, it is there on purpose. Don't like it, change it. That is what congress is for (although this "constitutional lawyer" seems ignorant.)
Pat Buchanan advises we lower the corporate taxes to be competitive. Why not just eliminate the desultory taxes and show people what they really pay in taxes, since they are the ones who really pay the taxes?
Feel free to forward this by email to three of your friends.
2 comments:
"You cannot tax a corporation."
Wouldn't this apply to any business, even a small sole-proprietorship, since we pass on the costs to the customer in the product cost?
Yes! But right now I am picking on corporations... if anyone is not the end user (consumer), he does not pay the taxes. It is just not possible for anyone except the last to pay taxes.
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