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To: pigdog
And a bit further down on the thread I notice one of the liberal Democrat disruptor wannabees trying to make believe that if a corporation does not pay taxes it must be doing something not allowed by the income tax laws.

I don't know for the gentleman of whom you speak, but you, I am sure, would be interested in the following, from Neal Boortz's exquisite little book, The Terrible Truth About Liberals...

"BUSINESSES DON'T PAY TAXES"

Haven't you heard Liberal politicians talk about businesses needing to carry more of the tax burden? You probably think that's a good idea, don't you? After all, those huge, rich, evil multinational corporations should pay more taxes so that the little people can keep more of their own money to spend.

If those thoughts have seriously crossed your mind then you have fallen victim to a massive Liberal con job.

For starters, consider these points:

1. There is absolutely no limit to the government's desire for your money. Liberal politicians want as much of your money as they can possibly get their hands on, and they will keep reaching into your pocket and grabbing your cash right up to the point where they start to seriously fear you are about to cut their hands off.

2. These liberal politicians will use any subterfuge, any lie, any trick they can to keep you from realising just how much the government is really costing you.

An example: During Bill Clinton's 1998 State of the Union speech, he bragged that America had the smallest government in decades. The Liberals in the House Chamber dutifully applauded this lie. Then Clinton went on to propose a federal budget that would consume 20.1 percent of the Gross Domestic Product, the total value of all goods and services produced in the United States in that year. Not once since the end of World War II had our government consumed that much of the GDP.

Just how, dear attentive reader, do you square Clinton's claim to the smallest government in decades with the reality of his budget proposal?

Let's go back to businesses supposedly paying taxes.

When politicians think they have pushed the individual taxpayers to the breaking point, they will start to talk about raising taxes on businesses and those evil corporations.

Washington politicians, especially the Liberal ones, believe that the average American actually thinks that businesses and corporations pay taxes. Unfortunately, sadly, these people are right; the average American thinks just that.

But the average American is dead wrong.

Here is a lesson that Liberals do
not want you to learn. They know it's true but they don't want you to find out. The following paragraph is pornography to a Liberal.

The
only entity in this country that pays taxes is the individual! Corporations and businesses do not pay taxes. They collect taxes from individuals and pass them on to the government.

Virtually every economist in this country who is not working for the government will concur with this statement. (An important distinction. Government economists are being paid to preach the government mantra. They shoot straight with you and they are suddenly looking for jobs in the private sector.)

On second thought, maybe I had better expand on that. Let's try again: Virtually every economist who is not working for the government or teaching in a college or university will concur with this statement.

When a business or corporation takes money out of corporate earnings to send to the government in the form of taxes, that money isn't created out of thin air. If the money had not been paid to the government as taxes, it clearly would have been used for some other purpose. The money could have been used to pay salaries, give employees raises, pay stockholder dividends, pay profits to owners, buy raw materials, have a company barbecue, put new leather upholstery on the corporate jet...you get the general idea. Sending that money to Washington means it isn't going to be spent by that company somewhere else.

Now, if the money paid to the government was going to be used for salaries, just where did that money actually come from? Those dollars came right out of the pockets of the employees who would have received a raise or of the new employees who would have been hired.

OK, so what if no raises or new hiring were in the picture? Then the money might have been paid to stockholders as dividends, or to the owners as profit. Either way, when the money is diverted to taxes, it has to come out of the pocket of some individual - the individual stockholder, or the owner.

Whenever a dollar is spent, it eventually filters down to an individual somewhere. The person who provided the beef or the plastic forks for the employee barbecue. The worker who built the stomach pump used on half the staff the night of the company barbecue. The man who stitched the new leather upholstery in the corporate jet. Or the farmer who raised the cow that gave up its life for the cause of hamburgers and comfortable corporate posteriors.

Our economy operates for the benefit of individuals. All profits and earnings are eventually spent to benefit individuals, and all costs of doing business are eventually paid by individuals.

The individual is the basic unit of our economy. This is where all bucks stop.

So, when a corporation pays a dollar in taxes, that dollar ultimately comes from some individual's pocket.

When taxes are raised on corporations or businesses, those taxes are paid by individuals somewhere. The employee who goes without the raise. The person who doesn't get hired. The stockholder who sees his dividend increase. The farmer who can't get a good price for his cow.

Somewhere an individual human being pays. The business or corporation collects the money, and off it goes to Washington.

So, when you hear some Liberal yammering about the need to raise taxes on businessmen and rich corporations, that politician is talking about raising your taxes.

Just for the hell of it, you should drop him a line and let him know that you're on to him.



We understand, needless to say, that such liberals are not restricted to the Democratic Party.
44 posted on 01/19/2002 11:07:56 AM PST by BluesDuke
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To: BluesDuke
Thanks for the fine post, and you're right the maroon in question does not grasp that point about taxing businesses.

If you do a little spreadsheet work, you can independently verify that the cascading of hidden taxes that Boortz's article discusses will easily build from 20 to 40% of a non-productive increase into consumer prices ... all because of the cost of "taxing business".

Little Willie was "The Worst President In American History".

66 posted on 01/20/2002 5:27:46 PM PST by pigdog
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To: BluesDuke
Of course people with just a basic understanding of economics understand that there should be NO corporate income tax, unless their politics get in the way.

And this whole thing about "fair share" goes back to politics and socialism again. In reality, what business is it of the goverment how much money I make? What determines how "fair" it is if I double my salary and the govermentment takes over half of my gain? Only socialists talk about "fair share" to hide their politics in compasion. What they really believe is that anyone makeing over enough to just get by needs to pay most of their additional income in high tax rates, "to keep it fair".

They want equal outcome, not equal opportunity (but not for them of course, they need to paid highly because they are the smart ones, and they will need to determine who get what and to come up with the next five year plan).

This game can't go on forever, you can take from the rich and give to an increasing number of poor and not expect the poor to share the cost of goverment. At some point you cross the line of diminishing returns and "the rich" will give up as most of their wealth will be spent or taken. Then what?

74 posted on 01/21/2002 5:06:43 AM PST by machman
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