Tuesday, May 5, 2009
Who Pays Taxes?
With all the rhetoric lately about taxing corporations, I thought I remind folks that it is individuals that pay taxes not corporations. Corporations simply pass on increased taxes to the customer, pay lower dividends, or go out of business. I know from owning my own business...we did all three. The one that everyone forgets is dividends and it may be the one that hurts individuals the most. What current leadership forgets is that SOCIAL SECURITY is not enough to retire on and nor should it be...so we depend on investing in corporations to fill that gap. Capitalism works because it uses the sinful parts of humans for the good of all. The individuals in corporations want to be as successful as possible for themselves which they can not do without the help of the stock holders who get rewarded, but guess what, if the individuals in the corporations do not reward the investors appropriately they will be less than successful. It is this symbiosis that keeps wealth growing. Taxes if too high can become so burdensome that it damages this relationship and individuals suffer not the body we call "Corporation" because it is easy to make a faceless entity the evil problem when the problem is not remembering lessons of the past.