I want to correct one misconception that I think is being implied here. There seems to be a widespread belief that higher business taxes result in more progressive taxation. In most cases this is untrue. Progressive taxation is defined as taxing the rich at a higher percent of income than the poor. Business taxes are not placed directly on people, but are burdens on individuals only indirectly as a result of being owners, customers, or employees of the business. "Tax incidence" studies are done by Economists to determine who bears the ultimate burden of business taxes. These studies look at the supply and demand characteristics of the businesses being taxed, and the changes in prices and wages which result from the tax. Generally, these studies indicate that business taxes are regressive taxes, because most of the ultimate burden is placed on customers and workers. So one way to make our tax system more progressive is to cut business taxes. The best way to get more progressive taxation is to impose more direct tax on rich people, not try to tax them through their businesses.
My discussion above refers to taxation only - subsidies to particular businesses require a completely different analysis. Mark Anderson Bancroft Neighborhood ----- Original Message ----- From: "Martinez, Gene" <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: Monday, May 20, 2002 11:13 AM Subject: [Mpls] Boycott Target and other Corporate Parasites... > Carol Becker raises some excellent points about how our tax system no longer > includes some elements that made it more progressive (based on the ability > to pay). Having homeowners pay the same rate, regardless of the value of > their home has cut property taxes dramatically for people living in higher > valued homes. Cuts to commercial and industrial taxes have also robbed the > state treasury of millions of dollars we otherwise would have had. Cutting > motor vehicle registration fees for higher valued cars and SUVs has also > made our taxes less progressive. Finally, the legislature has made some > cuts to the income tax that primarily benefit wealthier individuals. <snip> _______________________________________ Minneapolis Issues Forum - A Civil City Civic Discussion - Mn E-Democracy Post messages to: [EMAIL PROTECTED] Subscribe, Unsubscribe, Digest option, and more: http://e-democracy.org/mpls
