The Fallacy of Corporate Taxes
I just looked through Drudge Report to see if there was anything new this weekend and found this report about a new tax proposal in California:
California state lawmakers are considering an unusual idea to solve the state's huge budget shortfall: Tax pornography.
The idea was proposed by a state assemblyman, and would impose a 25 percent tax on the production and sales of pornographic videos -- the vast majority of which are made in southern California.
It is unknown, however, how seriously lawmakers will take the idea or how the porn business would deal with the new tax. It is likely, though, that porm-makers would simply pass the cost along to consumers by making pornographic materials more expensive.
Likely? How about guaranteed that businesses pass on their corporate tax to their consumers?
I have never understood the rationale behind corporate taxes other than the fact that it gives politicians a way to say that they are sticking it to the big guy to help the little guy. So who will get hurt most with this proposed windfall tax on oil producers? The little guy.
I'm no fan of corporate welfare and corporatism. But let's be honest about who corporate taxes actually punish: individual consumers like you and I.








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