2/28/2010

Tax the Corporations!

Taxes need to go up. It's time the corporations pay a larger share of them! "Get em!" Let's take the biggest, they are making billions after all. Hit them with a dose of "social responsibility".

The only problem with that is the way a corporation works. It makes a product or service, calculates how much it costs, then passes those costs along to their customers. The time lag from a tax increase to a higher priced product is therefore not ten years or ten months, it is immediate.

The consumer represents close to 70% of the economy. That means that 70% of of all the now higher priced products are sold to us. The other 30% are in sales to other corporations. In turn, 70% of their products get sold to us too, along with the price increase they had to pass along. Now we're up to 91%, and we've only considered two levels of sales.

In short, unless corporations export their product, you the consumer, pay almost every penny of tax increase levied on the big corporations. You are paying more taxes than you realize.

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