[EMAIL PROTECTED] wrote: >> Hummm, at least you qualified your statement, so your thinking a little >> more about the concepts. If a corporation passes the tax, or tax >> increases, on to the consumer, then what about the business that is not >> incorporated, (eg a sole proprietor or partnership), where all income >> and expenses are pass through the the individual who pays the tax on >> income from his businesses on his form 1040. Are these personal taxes, >> or personal tax increases also passed through to the consumer who >> purchases good and services from the sole proprietor or partnership, and >> if so isn't the individual passing such taxes, or tax increase, back to >> himself? It kind of reminds me of the sprint commercial where the CEO >> is taking to a junior executive about abusing the company phones: >> > > First of all, as you should know, a corp is a separate entity and it's taxes > are an expense. For the sole proprietor, the taxes he must pay are still > factored into his cost of doing business. I know this is not the > academic/government response, but it is the real world... something the > academic/government community is too far removed from to understand. > > Larry Miller > You and I are also separate entities, just like a corporation. You and I pay taxes, just like a corporation. Do we ,as separate entities, pass on our tax expense? It could be argued that we do, perhaps by demanding pay increase form the government, (eg congress) in the form of increases in the minimum wage, for example. Perhaps the taxes you and I pay are factored into demands made by unions for better living wages and benefit plans from the corporation served. Why would only corporations pass on tax expense, as there are many other type of entities that pay taxes and are also separate. When we pay taxes to the government, we are paying taxes to an organization we ourselves own as Americans.
Anyway, going back to the focus that started the thread, America cannot continue indefinitely to operate the government through deficit spending, so at some point in the future we must: 1) Pass fiscal policy that reduces spending or increases taxes. 2) Service the deficit through inflationary spending, which is a hidden tax whereby the government creates new currency devaluing the currency in the peoples hand, resulting in increased costs for all thing the American people consume. The idea that additional government programs, or the deficit for that matter, can be financed by lowing taxes is a myth. Although, the economy can be given a boost within very narrow ranges of tax reductions/incentives over short periods of time, the idea that reducing taxes would increase government revenues is misplayed. The theory begins to break down as the tax rate approaches zero. With a zero tax rate the government would have no revenue, regardless of how vibrant the economy grew. Likewise the theory breaks down as the tax rate approaches 100%. We need a government that produces a balanced budget that would result in some surplus for emergencies. In this way the government could pay expenses as it when along without the need to issue war bond to finance deficits, for example. Although the below link does not deal with how government can finance deficit spending with currency creation that causes a hidden inflationary tax, it a good primmer on the evils and perils of deficit spending. http://www.greatreality.com/DebtFAQ.htm#WhoOwe Regards, LelandJ > --- StripMime Report -- processed MIME parts --- > multipart/alternative > text/plain (text body -- kept) > text/html > --- > [excessive quoting removed by server] _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[EMAIL PROTECTED] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
