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Who Pays Corporate Taxes?
Virginia has a car tax. Does the car pay the tax? In most political jurisdictions, there's a property tax. Does property pay the tax? You say: "Williams, that's lunacy. Neither a car nor property pays taxes. Only flesh-and-blood people pay taxes!" What about a corporation? As it turns out, a corporation is an artificial creation of the legal system and, as such, a legal fiction. A corporation is not a person and therefore cannot pay taxes. When tax is levied on a corporation, who pays it?
What about raising taxes on corporations as a means to get them to pay their "rightful share of government"? If a tax is levied on a corporation and if it is to survive, it will have one of several responses or some combination thereof. One response is to raise the price of its product, so customers share part of the burden. Another response is to lower dividends, so shareholders share a part of the burden. And a considerable portion of reduced dividend burden falls on ordinary non-rich people. According to the Tax Foundation, 19 percent of federal tax returns report dividend income but 42 percent of taxpayers older than 65 report dividend income. Therefore, it is people, not some legal fiction called a corporation, who bear the burden of the tax. Because corporations have these responses to the imposition of a tax, they are merely government tax collectors.
The largest burden of corporate taxes is borne by workers. We discover that by asking a simple question, such as: Which workers on a road construction project earn the higher pay, those employed moving dirt with shovels and wheelbarrows or those doing the same atop giant earthmovers? You'd guess the guys operating the earthmovers, but why? It's not because they're unionized or because construction contractors have a fondness for earthmover operators. It's because those workers have more capital (tools) to work with and are thereby more productive. Higher productivity translates into higher wages.
Tax policies that raise the cost of capital formation — such as capital gains taxes, low depreciation allowances and corporate taxes — reduce capital formation. As a result, workers have less capital, lower productivity and lower wage growth. In 1980, Joseph Stiglitz, now a Nobel laureate, said that workers share the highest corporate tax burden in the form of lower wages. A number of economic studies, including that of the Congressional Budget Office, show that workers bear anywhere from 45 to 75 percent of the corporate tax burden. Adding to the burden is the fact that capital has the kind of mobility that labor doesn't. Corporate capital can flee to other countries easily, but workers cannot.
Originally posted by AzureSky
Alright, So lets not tax the corporation itself
Lets tax the capitol it makes. There is a tonne of 'capitol' or al, that is not being taxed in the least. And i think since corporations are people in this day and age.. The world is silly.
Originally posted by Blaine91555
It also has a lot to do with why the Progressive agenda of Socialism always leads to a two class system. In Greece it got out of control and now the whole country is on welfare and can't even feed itself without handouts. The citizens are so used to all the handouts, they are like a bunch of children that don't know how to make it on their own and their kids don't have a clue where the money comes from or that they have no money anymore. Greece is self-destructing just like all such systems eventually do.
Originally posted by malcr
Originally posted by Blaine91555
It also has a lot to do with why the Progressive agenda of Socialism always leads to a two class system. In Greece it got out of control and now the whole country is on welfare and can't even feed itself without handouts. The citizens are so used to all the handouts, they are like a bunch of children that don't know how to make it on their own and their kids don't have a clue where the money comes from or that they have no money anymore. Greece is self-destructing just like all such systems eventually do.
Not true. Greece is in trouble due to the lies it made about its economy when it joined the Euro. This meant the whole economy was out of balance from the start and unsustainable.
If you look at scandanavian countries these have high taxes and high welfare (astonishingly so). They are also some of the happiest and least corrupt nations on the planet.
well suprise suprise!
Come on socialism so we can all lead happy, productive, worry free lives.
Originally posted by Blaine91555
reply to post by malcr
Your wrong. It's just that simple. Either that or you are a victim of propaganda. You really should do your homework unless of course you are a propagandist yourself.
Greece ran out of money, period end of subject. You simply cannot spend more than you take in year after year and give handouts to everyone and survive. The world should let them make it on their own and watch them starve.
Retirement at age 50, government controlled wages, no way for a business to be profitable is what wiped them out. No more cookies in the cookie jar and their children are rioting for cookies that don't exist. How stupid is that? They can't give what they don't have and the world will stop loaning them money.
edit on 9-11-2011 by Heresthebeef because: wanted to delete the last bit of the post.edit on 9-11-2011 by Heresthebeef because: Sorry messed up