One of the loudest complaints against the FAIRtax is that it will abolish the corporate income tax. According to the D.C. elites, it seems unconscionable that billion of dollars of corporate profits would go completely untaxed. They believe that the mega-rich corporations should be obligated to “pay their fair share”. An Op-Ed in the Wall Street Journal by Phil Gramm and Mike Salon had some interesting points regarding corporate taxes:
* Americans don’t understand that corporations do not pay taxes and that corporate entities are owned by people – you and me.
* Corporate taxes are just like any other cost of doing business and when costs go up, the increase is passed onto different people in different ways – as higher prices to consumers, as lower wages to employees and/or as lower dividends to investors.
* If you consume, you pay the corporate tax. If you consume and work for the corporation, you pay the corporate tax twice. If you consume, work and invest your retirement funds in corporate equities, the corporate tax hits you three times.
* A recent Treasury study confirms that 92.6 million families, 49.5% of all American families, pay more corporate taxes hidden in the price of the things they buy than they do in individual income taxes.
* Even if the D.C. elites like to portray big corporations as being run by greedy robber barons, if you pull back that curtain, it isn’t a wizard or robber barons you will see. You will see yourself as a consumer, worker and pensioner. We must not forget that the corporate tax is a tax on everything you buy, a tax on your wages and a tax on your retirement nest eggs.
What are some of the conclusions?
* To hide the true cost of the income/payroll tax system and increased regulation from the American people and to distract attention from the government’s numerous failures by creating tension between the American people over “fairness “.
* To divert from government failures by blaming greedy corporations and individuals for not paying as they should and trying to convince people that raising corporate taxes would reduce our tax burden.
There is an elegant solution to the corporate tax problem – the FAIRtax.
Please join with me to promote and encourage the adoption of the FAIRtax. For more
information please go to FAIRtax.org.
