OK, Lets tax those rich corporations. Yea let’s get them.
But don’t only people pay taxes? No, corporations pay taxes too. The income from the corporation pays the corporate tax.
Hey I’ve got an idea, let the corporations pay all taxes and people will not have pay any income taxes. Just jack the rate up and let corporations pay for everything. And, when the government needs more money just raise the tax rate.
Wow, so people will not have to pay income taxes if we get all the income taxes only from corporations.
Well if corporations pay all the income taxes won’t that hurt them and make them go out of business or have to raise prices or something? No, they are so rich they can pay all the taxes from their income.
That’s great. I will go into a big box discount store and all the prices will be the same except for those items that have gone up in price from inflation. That’s right they had to raise some prices on things because they have to make money off of those. They can’t keep the same price or they would lose money on that item. Oh, and they are now paying their employees more money / hour. How does that work? Well they had to raise the prices on everything a little to pay the employees more. And, electricity, the parking lot repaving and many more things have gotten more expensive for big box stores to pay for. Well yes they had to raise the prices a little on everything to pay for the price increases.
Why don’t they just pay for all of those increases out of their checking account? Well, the big box discount store’s checking account would get depleted if they didn’t make money. They would go out of business! Oh, I see I have to pay more for items at the big box discount store as the expenses go up and the price they buy things for goes up due to inflation to keep the store in business.
So, if we raise the corporate tax rate that would also deplete the big box discount store’s checking account, right? It would. They will just raise the prices on all items to cover the increased corporate tax. I guess I’ll have to pay more for everything at the big box discount store as I’ll have to indirectly be paying their corporate tax.
Won’t that hurt low income people buying at big box discount stores? Yes they will be paying the corporate tax for the store too. So, how does a corporation actually pay taxes? They don’t. The reality is customers pay for everything. Is there some way we can have the rich people pay more at the big box discount store than the poor? Nope, the items rung up at the cash register are the same price for rich or poor people. And, raising the corporate tax rate will hurt the poor more than the rich that can afford higher prices on everything. So, to help the poor we could cut corporate taxes. It would make the prices at the cash register lower. That is true, but many don’t understand how corporations actually work. It would sound to the uneducated that eliminating corporate taxes would benefit only the rich.
Hum, it seems to me corporations do not pay taxes, or the light bill, or paving the parking lot, or higher employee wages and benefits. It’s really the customer that pays for everything. Yep it is. Only people pay taxes…