I love the idea of higher taxes on business

A business can basically make more money in three ways – not counting simply cutting expenses. It can raise prices, sell more of its products at the same price or sell at the same price and lower the size or quality of the items it sells, like the new “gallon” of ice cream or cutting the 16 oz can to 14.5oz.

No matter what a business does, all of its earnings come from customers, they either buy the products or services as offered or they don’t.

The idea that taxes can be raised on corporations without consequences is no more than political rhetoric. There is no free ride. Business is not Americas ATM – and neither are “wealthy” Americans for that matter.

Everyone is affected by what a corporations earns or doesn’t earn. Shareholders may see a lower returned on their investment because of lower earnings – shareholders are not some elite group of greedy folk as some politicians would have us believe, they are everyday Americans trying to save for their futures too.

Employees depend on a company continuing to be profitable because that is what pays for their benefits and wages. Actually, employees depend on a successful and growing employer for their jobs.

Higher taxes on businesses also translates to higher prices for consumers or maybe the disappearance of some goods and services.

Higher taxes are necessary in this Country – on everyone – to deal with our spending and deficits, to actually pay for all the things we want or are promised by unscrupulous politicians, but who is going to tell us the truth about taxes? Not the politicians.

In the UK workers and employers each pay over 15% of most wages in taxes just for their form of Social Security and a few other services, not including health care. In the United States it’s always either not pay and instead borrow or let someone else pay. We are like a family with spoiled children where the parents can’t say no while meeting their demands with credit cards.

4 comments

  1. It’s obvious the federal and state governments will keep spending. They will do it no matter the amount of tax receipts. Local governments are in on the action also. The feds just spend and create money and the state and locals float bonds. If you think paying higher taxes will keep deficits down then you are dreaming.

    I don’t see the problem with corporate taxation as long as it doesn’t put them at too big a disadvantage globally. The same goes for the ultra wealthy. At what rates I don’t know but they can spend some more propping up the country.

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  2. I am always suspect when we use other countries to benchmark our own failure or success. Great Brittan has a pronounced deficit problem along with higher taxes. There is no limit to the spending when spending other peoples money. I can assure you that our problem is not that we are taxed too little. My vote goes to electing fiscally conservative citizens who can’t imagine keeping our levels of spending as they are.

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  3. The truth is only the government gets to print money out of thin air. Businesses and people cannot print money for the government to take. Businesses and people used to have to earn that money but Covid changed all of that. For almost two years you could stay home and do nothing.

    However, even the printing of money has consequences, like inflation.

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  4. Well said. I sometimes wish we could go back to the 50’s and 50’s. Not a lot of promises made on the the government was going to be your savior.

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