Why is corporate tax the enemy of the worker?
Let me begin my explanation by making a bold statement … corporations don’t pay tax, never have, and never will.
Don’t like it? Doesn’t matter. That’s the way it is. No different than gravity, it’s the way it is. You want gravity to lift things up in the air, then go to another universe, this one has gravity pulling everything downward. And in this universe, corporations don’t pay any tax, ever.
Here’s what corporations do with any and all corporate tax … they collect it. Yes corporations are simply tax collectors. But, they are not tax payers. So anytime you hear people clamoring for higher and higher corporate taxes, keep this in mind … the corporations will be more than happy to COLLECT the higher tax. But, the corporations will never — ever — pay it.
Do you have any idea who ends up PAYING for all corporate tax? Take a guess?
That’s right, the workers!
So, next time you hear someone clamoring for higher and higher corporate taxes, remember this simple fact — corporations collect tax but never pay tax. Next time you hear some politician yelling, “Corporations need to pay their fair share of taxes! We’re going to raise taxes on all these greedy profit making companies” … remember …
Remember, it’s a smokescreen. When politicians clamor for higher corporate taxes what it really means is this … “Workers look out! Incoming tax missiles! Duck! You’re going to get hammered!”
Corporate taxes get paid in a variety of ways. None of which is by the company.
First to pay are usually the company workers — the employees. Lower raises, no raise at all, or reduced pay are a few options available to the company. The company can also cut workers benefits or cut workers hours. And, finally, just plain cut workers. In the end the workers pay.
Next, the tax can be paid by raising the cost of products and/or services. This simply means the company collects the tax and then passes the cost onto the consumer. In the end, consumers pay the tax. And most consumers are workers. Workers lose again.
Can companies endlessly pass on corporate tax?
No, there’s a limit.
And when that limit is hit guess what happens?
… the company goes under. That’s right, the company folds. And, when the company folds, the workers lose again.
So there you have it. Corporate tax is nothing but a politician’s smoke screen to get people to believe someone else is paying the tax burden. The idea is to make ordinary taxpayers think they’re going to get a tax break. If you believe that, then I’ve got some land on the dark side of the moon I want to sell you.
Here’s the truth. When corporate tax goes up, workers pay for it -every time.
Corporations make excellent tax collectors, but lousy tax payers. That’s OK. That’s the way it is. It’s not something to argue about. It’s not something to debate. It’s not something to get upset about. It just is … like gravity. If you want to argue about why corporation don’t pay tax, you might as well argue about why gravity pulls everything downward. It’s the same argument.
So, what’s the call to action for corporate tax? What do we do about it? How about starting simple. Let’s keep it easy and straightforward. Let’s do this. Next time someone starts blowing hard about why we need to raise corporate taxes, look them in the eye and ask, “I already pay enough tax, why do you want to make me pay more?”
Then simply walk away. Don’t continue the conversation. Don’t wait for an answer. Just walk away. After all, the conversation can’t go anywhere but down hill. Sticking around to debate the corporate tax issue would be the same as sticking around to debate why gravity doesn’t pull everything upward.