I sometimes hear that the FAIRtax will result in a windfall for corporations since the FAIRtax eliminates corporate taxes. Let’s make one thing perfectly clear – Corporations are legal fictions that have not, do not, and never will bear the burden of taxation. Only people pay taxes. Corporations pass on their tax burden in the form of higher prices to consumers, lower wages to workers, and/or lower returns to investors. The idea that taxing a corporation will reduce taxes on, say the working poor, is a cruel hoax. The corporate tax only makes what the consumer buys more expensive, costs employees jobs, lowers their lifestyle, or delays their retirement. Taxes are just another line item on the corporation expense sheet and it’s the consumer, employee and investor who pays for it. Under the FAIRtax plan, all the hidden cost created by the income tax disappears and money retained in the business and reinvested to create jobs, build factories, or develop new technologies, pay no tax. But, some believe that corporations will not do these things and will simply keep prices the same and cash in. Although some may try at first, they will soon see their market share drop. After all, if store A and store B are selling the same product but store B is selling it cheaper than store A, which store will you shop in? The FAIRtax is the most honest, fair, productive tax system possible and free market competition will do the rest. For more information please go to FAIRtax.org
