Corporate Taxes

The Flaw in the Obama Tax Plan to actually tax corporations

Barack Obama’s Tax Plan may not be the good idea you think it is.

Lower taxes are good for everybody, except the rich.  I haven’t seen the study that says so, but I’ll believe it when it comes out.

The one thing that struck me in all of the political rhetoric during the election, was that Barack Obama is claiming that he will actually force corporations to pay what they owe in taxes (by closing loopholes etc.).   This would be awesome, because said businesses want all the benefits of being their own entity (treat the company like a person), but none of the responsibility that should be inherent in any going venture (like the paying of taxes you and I do).

But let’s get one thing straight, business will NOT pay taxes.  They will just raise prices on their goods and services, thereby making you pay their taxes for them.  Don’t get me wrong, more money in your and my pockets is a wonderful idea, but be forewarned, this will happen if he follows through on this particular campaign promise.

The only upside to this is that YOU are the ultimate decider in what goods and services you pay for week to week and month to month.  If you don’t like paying $1100 a month for cable internet and tv, cancel it and find a cheaper option.  If enough people defect en masse, then companies would have to cut costs to try to survive, either that or cut prices to regain enough market share to stay a going concern.

We’ll see how this develops, you know, eventually.

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Wednesday, November 12th, 2008 Politico No Comments