When we're socking it to the big corporations, who are we really socking it to?

Question

I have long believed that corporations should be virtually tax-free. Essentially all corporations pass along to the consumers of their products the costs of their operations. Taxes are also a part of a corporation's costs to operate. If the Democrats target corporations, and raise corporate taxes, I believe this is a tax on you and I. They'll just raise prices. In addition to this, I believe that the complexity of tax laws as well as thick beauracracy with regard to government oversight into corporations practices also makes it more popular to decide to outsource to other nations it's manufacturing operations, costing American jobs.

What's your take on this issue?

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Answer 1

I agree with your argument.  I'll just offer some of my personal thoughts.

The government needs money to operate.  One source of revenue is corporate taxes.

If we eliminated corporate taxes, the government would need to raise taxes in another area or cut some services.

It's a revenue stream which we ultimately pay for, but also receive back in services.

The tax system which has been developed over the decades is certainly inequitable and full of flaws.

However, it works.  My take is that I'm going to work as hard or harder than the next guy so that my pecuniary remuneration easily offsets any taxation mandates.

And, I'll continue to complain, no matter the burden.

Answer 2

Actually, I think we get a double whammy here. Congress is socking it to the individual wage earner. Not only will the corporations raise their price, but you and I will now have to pay a higher sales tax because of that increased price, if we are living in a state that has sales tax. So, the federal government gets additional money by taxing the corporation, the corporation gets additional money (or at least equal) because they will raise the price of their product to account for that additional federal tax, and the state gets additional money because they will receive a higher amount in sales tax.

You and I have less discretionary spending because we have to pay more for the product and we have to pay more in sales tax...The federal and state governments win, the corporations either win or break even, and the individual wage earner gets screwed twice.