Yes the taxes would be passed on to consumers and other customers
that bought from the corporations but not to those that do not work
or trade directly or indirectly with the corporations, those that
deal less with the corporations either directly or indirectly would
be taxed. In most cases people will have an option on not dealing
directly with a corporation thus my comment on building alternative
systems and institutions. Now not dealing indirectly with a
corporation can be harder unless the law requires corporations to
post their taxes with the price and require non corporate businesses
to post the taxes passed on to them by the corporation but at least
the latter would not be necessary and would be burdensome to the non
corporation. The cost of the taxes on the corporation would be
reflected in the price of the non corporations goods and services
anyway and will tend to drive customers away thus the noncorporation
business will try its best to only deal with other non corporations
if it wishes to remain price competitive. Thus my question on if the
corporate taxing system can sustain if the tax rate is going to be
high enough to remain revenue neutral, if it is not the government
can either decrease spending or increase the corporate tax, if the
corprate gross revenue tax is boosted to as much as 50% or more the
government revenue is surely to drop a lot, then the tax system will
not sustain but by then the non corporate economy will likely be so
productive it will not need most of the government revenue
anyway.
The word corporate tax is actually misleading so Rothbard's and
I think Mises ( but it might have been Hayek) caution would not
apply. It is in fact a fee for service, an optional service in most
cases and if you exempt the first million dollars a year in revenue
most corporations would not pay. Where using the governments
incorporating service is not an option then yes in those cases it
would be a
tax.
Now Rothbards tactic was not to turn down a tax cut, tax credit,
dedcution or exemption or be shy in asking for or demanding them, in
fact he said get enough loopholes to drive a Mack truck through. If
you call for elimnating all personal and noncorporate group taxes
you will not be calling for those taxes to be placed on corporations,
if the government is willing to get by with the reduced revenue it
will not have to increase corporate taxes, if it is willing to go
even lower and get by with voluntery donations it can elimnate the
corporate taxes as well and elimnate the privildges it gives
corporations thus allowing the market to provide as much of the
incorporating services that it can economically and justly provide.
Some of the limited liablity aspects will be limited in the market
place but through contracts and network agreements the market could
provide much of the liablity insurance/ assurance.--- In
[email protected], "Geof Gibson" <[EMAIL PROTECTED]> wrote:
>
> --- In [email protected], "terry12622000" <cottondrop@>
> wrote:
>
> > 99% of the 23 million American business would pay no
taxes
> > directly
> >
>
> Here's the problem I have with that. Almost asuredly, these
corporate
> taxes would be passed on to the public in the form of higher
prices.
> Yes, we wouldn't pay the tax directly, but we would still pay.
> I think it was Rothbard or Hayek who suggested that replacing one
tax
> with another was just not an effective way to foster Libertarian
> government. We don't have a tax problem, per se, what we have is a
> spending problem and this type of tax plan doesn't give them less to
> spend.
> I would think the net result of this plan would be economic slowdown
> and removing taxation one more step from the citizenry, thereby
> reducing the overall level of outrage at taxation, which, I think,
is
> one of our most potent weapons.
>
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