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Corporate taxes, or 'production taxes', are just another way to hide taxes from the consumer. As the linked article points out, all costs incurred by producers are passed along to their customers -- resulting in consumers paying all corporate taxes when purchasing goods and services.
Unfortunately, such taxes are a very destructive method of collecting taxes from comporations' customers. Consumption taxes, collected directly from purchasers, are much preferable for one simple reason. While both consumption and production taxes raise consumer prices, corporate taxes raise the cost of production of American products, making foreign alternatives relatively cheaper.
Corporate taxes, as well as income taxes and all other taxes on productive activity, don't lower the tax burden of our citizens; rather, they simply make American products less competitive in world and domestic markets, resulting in less wealth and fewer jobs here. |
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