5 Reasons the American Tax Payer Should Support the Fair Tax! pt 3 – Corporate Taxes #tcot #oktcot #fb

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This section seeks to make one simple point; the concept of the corporate tax is a farce.  When the legislature asks businesses to pay a corporate tax, the company has three choices.  They can pay the tax from their profits which mean the shareholders in the company, individual taxpayers, will receive smaller dividends from their investment in the company.  Another way to cover the cost of the corporate tax is for the company to increase the price of their product.  Under this more likely approach, an individual taxpayer will foot the bill of the corporate tax rather than the company shareholders.  Additionally, the company could lay off employees or cut back employee benefits to cover the cost.  Once again, individual tax payers, not the corporation, take the hit.[1]

Go ahead and re-read that paragraph.  The logic is sound and the corporate tax boils down to just another cost to the individual taxpayer through loss of profits, increased costs, or loss of jobs.  The Fair Tax, through elimination of the “corporate tax” brings us one step closer to a free market economy.

[1] Boortz, p. 33-34

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Published in: on April 23, 2010 at 10:19 am  Leave a Comment  
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