Why you can’t tax a company


Anyone who is for higher “corporate tax”, or “corporate tax” at all, should watch this video where a brilliant Nobel-Prize winning economist and one of the greatest minds of the 20th century clearly explains why so-called “corporate taxes” are nonsense.

Obviously, taxes cannot possibly be paid by corporations, since corporations are simply a group of people. Only people can pay taxes.

So, what are termed “corporate taxes” are actually paid by employees, in the form of lower wages, and/or customers, in the form of higher prices.

A CEO is only concerned with cost per employee. They don’t care if an employee makes $30,000 and the government gets $20,000 per employee, or the employee gets $50,000 and the government gets $0. It’s a $50,000 cost per employee either way.

But the employee is the one that gets screwed, since they already took a $20,000 hit, then must pay taxes on their paycheck as well, resulting in artificially low wages, and that employee is much more likely to struggle to pay for basic necessities like housing, food and medical care for their families.

The answer is obviously not more government programs to help that employee. Just let them have all (or most) of the money they earn and most will be just fine!

Higher prices and lower wages, of course, hit the poor the hardest, so, as so-called “corporate taxes” are raised in 2013, watch poverty and government dependence skyrocket to record levels.


One thought on “Why you can’t tax a company

  1. Pingback: Corporations are not people | Trying to make sense of the obvious

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