ALL “Corporate Taxes” are paid by consumers at the cash register.
Any “Tax On Corporations” is REALLY a HIDDEN TAX on the consumer. These HIDDEN TAXES are VERY REGRESSIVE, meaning that the poor are hurt by these taxes.
A recent exchange on Twitter demonstrated that few understand this simple fact. The person commenting on my Twitter post said, “You’re literally just making things up. How is a corporate tax regressive?”
I thought it may be helpful to illustrate. Following is a spreadsheet for the fictitious “Denim Jeans Company”. In this example, the company sold exactly 100 pairs of jeans. One pair of jeans to a billionaire (the one percent), the other 99 were sold to individuals making minimum wage who will wear the jeans to work. (the ninety-nine percent)
The price for the jeans is $70.00. In California, a 9.5% sales tax is added. So each purchaser pays $76.65 at the cash register. The purchase price without Sales and HIDDEN TAXES calculates to $67.55.
Total taxes of $8.12 are included in the price everyone pays.
It is critical to understand that the ninety-nine percent (THE POOR!!) paid $145.53 (99%) of the “Corporate Tax”!!! The one-percent (THE RICH!!) paid $1.47 (1%) of the “Corporate Tax”!! Similarly, THE POOR pay 99% of the Sales Tax!! How is that helpful to the poor?
This is, of course, simplified. But that does not diminish the truth of the point. This concept applies to ALL of the poor’s purchases. Gas, Utilities, food, vehicle repairs, and any other goods and services. “Corporate Taxes” are paid by consumers and are HIGHLY REGRESSIVE.
These simple mathematical facts prove that the “Corporate Tax” is REGRESSIVE!!
This is NOT “ideology”!! This is NOT “spin”!!
#ItsJustMath
#TheFoundersWeep