"WHO REALLY PAYS THE TAXES"

After a lot of thought and study it appears evident that the consumer pays all the taxes.  Now keep in mind that the only real wealth created is from the labor which changes natural raw materials into a saleable or useful item.  If the wealth is not created it can not be used to pay taxes.   Let us look at a few examples.

INCOME TAXES:  This at first appears to be quite straight forward.  Those who earn money need to pay a portion to their government for its support of the system.  The payment is extremely evident when considering those in the so called laboring class.  Not only do their wages, but also the taxes they pay come from the sale of the products because of their hours invested to produce the product.  Now when we get into the so called professional area it is not quite so clear.  Here they produce nothing which is saleable or stand alone useful.  However the money they receive comes from the selling of the  product,  Which could not be sold if it wasn't produced. So from the sale price we pay for the production labor, the people who service (that is transporting, advertising and selling), the production, the managers and investors.

CORPORATE TAXES :  Here again the corporation would not be in existence if they had no labor with which to produce a useful and saleable product.  The distribution of the wealth created within the corporation is determined by management.  The product is sold under the Capitalistic principle, the market will set the price.  The difference is called profit and that is what is taxed.  So again the initial source of money to pay taxes comes from the public who buys the product.  They would not have that money if there was not a producer, service to production, manager or investor who made something for someone else to buy.  Another point I would like to make.  Most corporations not only price the product according to what the market will bare but also on the total cost of producing the product.  Therefore if the corporate taxes are included as part of the cost and they add their percentage of profit; they will collect their taxes in the price as sold, but will keep the additional money which was the percentage of the taxes.  In simple terms.  If their taxes are assumed to be $100,000 and their profit margin 10%; the price of their product will include that also and become $110,000.  Once collected, they pay the government their $100,000 the other $10,000 goes into their profit margin.

SALES TAXES:   I truly despise this term as it really is a buyer or consumer tax.  While the ones who collect this tax are the sellers, it us the buyer who pays it.  And where do you get the money to pay this tax.  Either you are of the laboring class and earn it, or you serve those who earn it and they share it with you for your service.  Even the worker can not receive his pay for long if no one buys the product.  So again the consumer pays. 

If you can see where I am wrong please let me know.  If traced back far enough you will find that all tax money is created by the labor that creates a product that is saleable and paid for by those who purchase those products.   Keep this in mind as you read 2203 Tax the Wealth.

 Just A. Pebble

CLOSING THOUGHT:

    Needs sustain life,  Wants enhances life: Greed destroys life.               A Hobyism

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