Susie Madrak points out how the biggest corporations are avoiding paying any taxes while the federal and state governments are demanding that ordinary people pay more. She also highlights the movement USUncut that highlights the tax inequities and is based on a successful UK model.
Feb 28 2011
How the big corporations avoid paying any taxes
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Jeff Hess
March 1, 2011 at 6:24 am (UTC -4) Link to this comment
Shalom Mano,
I’ve always had a problem with corporate taxes because I have to think that they, when they’re paid at all, are factored into the operating costs of the corporation and, as such, are passed along to the consumer who then pays the tax for the corporation with every purchase.
Corporations are legal fictions and should not be taxed, allowed to take part in political activities or, I can so see this coming, allowed to vote in elections.
Tax people, especially people with the most money, and not the corporations.
B’shalom,
Jeff
Steve LaBonne
March 1, 2011 at 7:34 am (UTC -4) Link to this comment
Jeff- things are actually not so simple- there’s really no consensus about the incidence of corporate taxes. Try this paper for starters:
http://www.urban.org/UploadedPDF/1001349_corporate_tax_incidence.pdf
Orlando Insurance
March 1, 2011 at 1:27 pm (UTC -4) Link to this comment
Shalom, you said it, corporations are going to no matter what either get a break on taxes or else have the consumer pay for it. They know their profit margins and what they need to do in order to be profitable. I believe in taxing people as well. Im not saying tax the rich, im just saying tax people on what they consumer and buy.
Jeff Hess
March 1, 2011 at 2:16 pm (UTC -4) Link to this comment
Shalom Steve,
In business there are only costs and profits and profits are equal to revenues minus costs.
For example. I run a business with annual revenues of $1,000,000 from 10,000,000 customers with costs of $800,000 leaving me with an annual profit of $200,000.
If any government levies a tax on my business equal to 20 percent of my profit, or $40,000, which do you think more likely to occur: a.) I pay the tax and live with my $160,000 profit or b.) I adjust my sales price by $0.004 and spread the $40,000 across my 10,000,000 customers?
B’shalom,
Jeff