| Subject: |
Re: [OT] Question for the economists |
| Author: |
"Leland F. Jackson, CPA" |
| Posted: |
2007/09/29 23:02:57 |
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Following along the line of thought from my previous post, if every
business, whether incorporated or no, passed their income tax back to
the consumer, any advantage gained by entity A from passing it income
taxes, or income tax increases, to others would be lost, when entity A
in turned purchased the raw materials, labor, services, and parts it
needed from outside entities B, C, D, E, ..., that also includes income
tax ,or income tax increase, in their products, so it become an exercise
in futility, where all the passing around of income taxes cancels out
with increase in sales price of products, offset by increase in cost of
good and services purchased from outside businesses due to income taxes
being passed around.
Carrying the concepts on to the next logical step, the question then has
to be asked whether the payment of income taxes is really and expense;
since, the payment to the government is on our own behalf for good and
services that we ask the government to provide. Examples of the things
we ask the government to provide the people are universal health care,
social security, a military to protect the country and subdue the
killing going on in Iraq, agencies to regulate the environment and
protect against global warming, the cost of the executive, legislative
and judicial branches of government, the cost of agencies to regulate
agriculture, labor, Justice Department, etc. The money we pay Uncle Sam
is on our own behalf , and the value come right back to you and I, who
are benefited. In effect, when we pay taxes, we are paying money to
ourself.
The big difference between income tax and regular expense is regular
expenses we pay someone else benefits them, but the money we pay in
taxes is money we pay to ourself for our own benefit. This make income
taxes, even if viewed as an expense, a special kind of outlay.
Regards,
LelandJ
richmondeagle AT comcast DO.T net wrote:
> The involved explanations of the benign nature of corporate taxation are ample illustrations of academic and government speak. You can go into all kinds of verbal gyrations, but the fact remains that unless the law of supply and demand is in strong opperation in the competitive free market world, an increase in expense (and as was said before, a tax is an expense to a corporation as well as to myself) will cause an increase in price. Hence, corporations do not pay taxes, consumers pay the taxes for them.
>
> Think of it this way, if the corps did not have to pay taxes, in a competitive world, the prices would go down.
>
> Larry Miller
>
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©2007 Leland F. Jackson, CPA |
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