Thursday, August 14, 2008
Why Corporations Should Not Be Taxed.
Most corporations, including the vast majority of foreign companies doing business in the United States, pay no income taxes, according to a Government Accountability Office report released Tuesday.
To those of us that are educated on the nature of American Capitalism and economic theory, this is no surprise. Only the ignorant mass of U.S. Citizens, those outside of the five-percent club, are dumb enough to be 'shocked' or cynical enough to claim that it's common knowledge that corporations don't pay.
“As most college freshmen learn in Economics 101, corporations do not pay taxes, people do. The burden of corporate taxation is ultimately borne by customers (through higher prices), stockholders (smaller dividends and capital gains), and employees (lower wages).” -Corporations Don’t Pay Taxes, People Do
The problem is not that Corporations Pay No Taxes, it makes perfect economic sense to eliminate all barriers to profit to maximize the profit motive and encourage financial investment, putting people to work. The REAL Problem is that we allow Corporations to be political actors, to be Corporate Citizens, to influence our government, our judicial system, to make our laws and determine our foreign policies based upon their interests, no ours.
The purpose of a corporation is to avoid liability.
How many of you work for a corporation? How many of you invest in corporations? How many of you own corporations (got Stock)? How many rely on corporations to meet your basic needs? Answer: ALL OF YOU!
We have mistaken the CORPORATION for the cause of our problems, it is noting but a legal entity designed to avoid personal responsibility by those who use their powers to do harm.
What is the solution? Simple. INCORPORATE EVERYONE!
If each and every person becomes an automatic S-Corporation at BIRTH, their income will never be taxed, just like other corporations, and they will have all the same freedoms and lack all the same responsibilities as other corporations. They will be able to set their own salary and any Corporation will have access to the same legal protections as all others, i.e. limited liability.
Now, if you disagree, which would you rather have, one world of sovereign individuals, or a world dominated by giant international corporations, above the law, beyond taxation, irresponsible and seeking only to maximize profits?