Forum Post: Income Tax Does Not Lead To Progress

Many people are suggesting raising taxes on business and closing loop holes, but have they really thought that through?

I ask you to stop and think about this a moment. Businesses are in business to make make money. They have expenses, which they charge against revenue to determine their profit. They take these expenses into consideration on how much to charge for a good or service. Since they are in business to make money, expenses are included as part of the charge for that good or service, plus they add their profit margin.

Guess what happens to Income Tax Expense if taxes are increased? You bet your sweet ass, that cost is added to the price of the good or service. This extra cost is added on at each point of the process of creating a good, whether sold a product or included in the service. That means the income tax on each business along the way keeps adding to the final price. Guess who is really that tax? Yes, the public, not the business.

I propose we collect taxes as a Federal sales tax instead. That just shifts all the tax to the retail level instead. That is what I mean by seeing how much we really pay in taxes. We just need to figure out what that percentage is, but the burden on the people buying the good or service would not change, or actually the prices of the good or service should go down, as the cost of doing business would be less. Yes, some businesses may not pass along all the savings. Competition from the honest businesses would control some of that. Everyone would know to expect the price to go down, so it is not like the business can get away with not lowering their prices.

Secondly, businesses are not people, but people own them. In the case of corporations, many people own the corporation. If you are a stockholder, or have other investments, chances are you in some way own stock.

Think about this scam being perpetrated on all of us since the Income Tax was created. Neither the Democrats nor the Republicans want you to know this dirty little secret. Who wins from this scheme?

How much do you really pay in taxes? If you knew, you would probably be shocked.

Mr. 6XR7