Corporations physically conduct the tax paying transactions, however in reality, corporations do not pay taxes, their customers do. If the tax, or regulation, for that matter, bill increases, corporations do not absorb the cost out of the goodness of their hearts, they pass the increased cost along to their customers. A simple example that has recently effected a majority of Americans is the cost of Dodd-Frank. It limits the transaction cost of using a debit card to a level below the current market rate. This is why you are seeing free checking disappear at banks or a charge being assessed to have a debit card.

In reality, corporations exist for one purpose, and one purpose alone: To make money. That is it. If a corporation were not successful in making money, any other stated purpose for its existence would be irrelevant as it would cease to exist. Now watch as the Occupy Wall Street crowd is confronted with this fact.

Comments

  • Promise Kept

    Peter Schiff does a great job taking it to the streets, and is easily among the wealthiest player on Wall Street to actually talk with OWS folks.
    In an interview from earlier this week, Schiff discussed Cain’s 9-9-9 plan, where he makes his case for there being a fourth “9”, hidden in plain sight.

    http://www.youtube.com/watch?v=ecACtAxVaac
    http://www.youtube.com/watch?v=clWIh-d5Pkw&feature=related

  • The Gallant Gallstone

    If corporations are such mercenary entities, why should we bother to provide them with a public charter and the limited liability that entails?

    If they want to embrace a “the money is ours, thug life son!” attitude, I say we strip them of their public and legal protections.

    • http://scottslant.blogspot.com/ Scott A. Robinson

      The money is theirs. They earned earned it.

  • http://scottslant.blogspot.com/ Scott A. Robinson

    My economist friend keeps me honest on Facebook. He said:

    The portion of how much of the tax falls on the customer depends on the elasticity of the customer’s demand for the product. The more elastic the demand the less the consumer pays of the tax. Instead the corporation pays the tax by selling less of the product. Remember the infamous “luxury” boat tax of the Clinton administration – the “wealthy” just stopped buying expensive yachts.

  • Rob

    Peter Schiff’s a great guy. Loved what he did here.

  • Stephen

    It’s like I said in another comment:

    “Companies don’t pay taxes. People do. Any tax on business is passed on to the consumer or the employee and amounts to either a hidden sales tax or a hidden income tax.”