Today’s Wall Street Journal includes two letters of merit on the subject of corporation taxation, both responding to an earlier letter by Sen. Byron Dorgan (D-ND), protesting the behavior of the private sector.
We offer the one missive from the NAM’s own Jeff Noah (director of our small- and medium-sized manufacturers department), writing in his personal capacity:
Though Sen. Byron Dorgan insists on separating fact from fiction when it comes to corporate tax rates, neither he nor most policymakers from either major political party acknowledges the most stubborn fact of all: Corporations don’t pay taxes; they pass the cost of taxes, along with all other costs, on to consumers.
Since corporations are nothing more than collections of individuals (workers, executives and investors) who come together by choice in common pursuit of profit; and since those individuals’ profits (wages, salaries, dividends and capital gains) are taxed once already, a truly fact-based analysis might argue for abolishing the politically correct charade of corporate taxation altogether.
Such an abolition would immediately lower consumer prices for goods and services while dramatically boosting investment in American companies on American soil. Lower prices would help working- and middle-class families struggling to make ends meet, and the unprecedented rush of capital into the U.S. from around the globe would drive explosive economic growth, job creation and correspondingly higher tax revenues for federal, state and local governments.
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