American shell game
Politicians continue to tell us they are taxing corporations thus sharing the cost of government. Far too many of us buy that hokum.
Let’s pretend for a few moments that we have a great recipe from our mother for a loaf of date bread. It is so good we start a bakery and go into business for ourselves.
Now we must calculate our costs. To arrive at that figure, we will have to total all costs attributable to this endeavor.
A lease on the property where will set up shop, cost of raw materials, all utility costs, labor to make and merchandise our product, advertising, freight for inbound materials and cost to distribute our bread, wrappers or bags and store fixtures et.al.
That done we realize we will be subjected to any taxes assessed to our business and that cost will also have to be included.
There go our hopes to sell our bread at a profit for $2.25 a loaf. We have no choice but to add the 20 cents for taxes to the price which is now $2.45.
Guess who just paid the tax. True, our corporation may write the check but the funds covering that figure came from the ultimate consumer.
If those who advocate corporate tax increases don’t understand this, it would seem to indicate they are not fully qualified for their job. If they do understand the consequences then they are guilty of deceiving us.
So what else is new?