Is it just me or am I seeing this wrong?
This is just hypothetical but lets say I sell lemonade on a corner in town. My costs for this lemonade are 80 cents per glass and I sell a glass for 1 dollar. My profit is 20 cents per glass.
Now, the City’s town council decides to TAX businesses in town 10 cents on every dollar made. What just happened to my 20 cents profit? Mind you, I get great service for this 10 cents – such as police and fire protection, but I’m out 10 cents on EVERY dollar – 50% of my profit.
Being the business person I am, I want to make 20 cents, not 10. So, what would you do? Most people would raise the price of the lemonade to $1.10. At least I would. So, who is actually paying this tax? Me? No, my customers are paying it.
What just happened? The same thing that occurs EVERYDAY in America. Politicians say that corporations are making too much profit therefore they want to tax that profit. They pass tax laws to do so.
Wouldn’t you think those corporations will do the same thing I did in the above scenario? They will raise their prices. Who ends up paying for this tax increase? You, their customers!
What bothers me is most Americans agree with this philosophy of taxing corporations to support government.
What they don’t understand is they’re really taxing themselves.
So, is it just me or is it US?
For more reading on this I would recommend the following article and blog post.