We're all paying 'corporation' taxes
The recent "To The Contrary" column by Mark West explains how unfair trade policies with foreign countries hurts U.S. workers. Much of what he says is right on track, but there is one sentence in his column -- which really has nothing to do with the main subject -- that has always bothered me.
He says when U.S. manufacturers are closed due to foreign competition, we lose the jobs, "... plus the taxes that were once paid by manufacturers are now paid by us."
It is a common misperception that taxes are paid by corporations.
Never miss a local story.
This is not so. When government taxes a corporation, the corporation passes those taxes on in the price of the goods or services they supply, and the ultimate consumer -- that's us, you and me -- wind up paying them in the price we pay. The price of everything we buy, good or service, contains all the taxes paid by all the individuals or businesses involved in producing it.
No only that, but the final price includes the part of the Social Security tax paid by all the employees of those businesses, the Workman's Comp tax, all the license fees charged by government plus the cost of complying with all the government rules and regulations. We are already paying all these taxes and costs when we buy the product.
It has been estimated that the prices we pay include from 30 percent to 40 percent of such costs.
One big reason governments load all these taxes and costs onto business is to conceal them from the end customer -- that's us. If we really knew how much of our money was going to government, we would have a conniption fit. (Hint: It averages about 45 percent of our total income!)