Thursday, July 20, 2006

Just some brief thots on taxes.
They are a necessary evil of living.
Even in primitive societies, there is some form of payment required for being part of the community/tribe.
So when I see some Senator trying to appeal to the wealth envy of his audience by advocating a windfall profits tax on big oil companies, I want to smack him/her for lying and/or being stupid.
Think about this for a moment, where does a business - any business - get its money?
It gets it from it's customers - those who buy its products/services.
If we raise the taxes that a company must pay, where is the company going to get the extra money required to pay the extra tax?
From its customers!
That would be yoo in the case of the oil companies.
In fact, yoo pay all business taxes.
Any tax on any business is paid by the customers of that business.
So it is dishonest for a politician to say they want to raise taxes on business with the implication that this is to help "the little guy".
In reality, "the little guy" is ultimately going to pay the new tax.

BTW, this is why I am in favor of elimination of all taxes on business income.
Since I am going to pay for it anyway, just tax me directly.
When businesses are not taxed, they will lower their prices by an equivilent amount, which will offset the slight increase in my taxes.

You say, but the big companies makes millions of dollars in profit.
True, but that is what they are supposed to do.
That is why they are in business.
Those millions of dollars are for the benefit of the stockholders of that company.
If you think that a certain company is taking more of your money than is fair, and you do not have an alternative provider to do business with, buy some stock of the offending company.
That way, you will reap the benefits of the "excess" profits it is making.

This has been your Economics 101 lesson for the day.


JeniBeans said...

and educational, it was!
very interesting.

J. No said...

Well stated, Sir Paw.

Anonymous said...

I have spent a lot of time over several years researching the issue of whether the IRS is legally taxing our labor and what the taxes are truly used for. I recently became aware of a well done film, America: Freedom To Fascism, by Aaron Russo, that clearly documents the matter. I urge you to view it yourself. This information usually causes cognitive dissonance [i.e the realization that you've been brain-washed by the establishment]. Here is the Internet address if you dare to search for the truth:
The film tells what corporate taxes are spent on by our government. BTW, I agree with your declaration that corporations just pass on the cost of their increased taxation to their customers. This subject always reminds me of Hosea 4:6 ( people are destroyed from lack of knowledge.)


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