Thursday, February 17, 2011

Myth busters

You can't tax corporations because they will just pass it along to their victims customers. First they are taxed on their profits not on their sales like we consumers are with regressive taxes (sales and excise taxes for example). If they "pass it along" by raising prices that would only increase their profits and they would pay more income tax. This sort of round robin maxes out at about double the amount of tax if you play it out by continuing to "pass along" the tax each time.

Taxing the Rich kills jobs. Jobs are created by the companies that the Rich own and it makes no difference to the corporation how much tax the Rich pay as the money is gone once it's paid out to the Rich owners and no longer  can create even one job. Sure the Rich might hire an extra servant (undocumented worker) or take an extra trip on the G-6 (burning tons of fossil fuel to get to Caymans), but most of that untaxed money will go to the Caymans ahead of them, where it won't ever be taxed again and will be invested in China creating jobs there.