by D.P. "Bracken" Bracken
I am writing this because it has repeatedly and painfully been brought to my attention that the vast majority of people are totally unaware of the fact that all taxes are ultimately paid by them. People still do not realize that any tax on a business is, and must be, taken into consideration by that same business as a cost of doing business, in other words a business expense.
Since every business that hopes to stay in business had better figure in all associated costs when determining the final price of their service or product, we see that taxes and the cost of complying with those taxes is nothing more than a cost of doing business. Any business that fails to calculate in all business expenses is inviting certain bankruptcy.
So, taxes must be included in the formula when figuring the price of all products and services. Therefore, it is the customer, not the business itself who really pays the tax bill for the business. This is a fundamental rule and basic axiom of taxes.
But, we still witness people of all persuasions attempting to subvert this principle by creating new ways to tax businesses, all in the name of 'fairness'. "We must tax this business so that they will pay their fair share", the experts and politicians declare.
The public, uneducated in the basic principles of taxation, is fooled once again into demanding that these businesses 'pay their fair share', not realizing that it will be them, the public, who will pay the final bill for this new or added tax.
This is not limited to federal taxes, as we even see these types of ill-conceived tax schemes pushed at the local or State level. Witness the recent proposals here in Nevada for a corporate tax to pay for education, and the Casino tax proposed by one of our own Nevada State Senators.
A recent survey showed that Nevadans do not approve of the proposed tax on corporations to pay for education, but there is overwhelming support for a tax on casino profits. Wake up people! Who will end up paying for both of these proposed taxes? That's right... you and I!!
The more you tax business, the higher prices will become. Ever wonder why a $3.99 buffet dinner is now $8.99? Inflation? You bet. And a large part of inflation is due to tax increases.
Observe what happens when new business taxes are created or existing business taxes are increased. Within a short span of time you will observe prices going up again.
So, what should we do? I don't know about you, but I for one would like to see how much I am actually paying in taxes. Sure it may come as quite a shock, but the only way you and I will realize how much of our money goes to support government is for all taxes on businesses to be abolished.
That way, the cost of taxes and complying with them will never be entered into the equation of figuring the price of any product or service. This is our only hope to get rid of these insidious 'hidden taxes' and to thereby know the full amount that we pay.
Of course, most of those in government don't want you to know these fundamental laws of taxation. They are busy trying to obfuscate the matter by creating more and varied types of taxes so that you will always be in the dark as to how much your tax burden is as a percentage of your total income.
There are those of us who would like to simplify matters by changing the form of taxation over to a sales tax, i.e., a consumption-based system. If we got rid of most of these various taxes and in their place had a simple, fair, broad-base sales tax on all goods and services, both at the federal and state level; we could then see the true cost of having a government.
But, you might ask, why tax all goods and services?
Well, since in reality you are paying these taxes anyway on all goods and services in the form of the above mentioned 'hidden taxes', why not have a tax system that truly reflects that fact.
Remember, you are paying this 'hidden tax' on everything. You are already paying taxes on food, clothing, shelter, transportation, utilities, doctor's visits, prescription medicine, etc., etc., etc. On everything you buy. Even business-to-business transactions contain this added cost!
Some will say that sales taxes are 'regressive' and hurt the poor and those on fixed incomes. But ask those same people to explain what is fair about a tax that increases the price on the very necessities the poor and those on fixed incomes need to survive. If you examine the income tax in this light you will see that it is actually income taxes that are 'regressive'.
In conclusion, I submit that we must first do away with any and all taxes on business. Then we shift over to a broad-based sales tax and eliminate all income taxes, both at the federal and state level.
Personally I do not mind paying taxes, but I do mind the fact that I can only see, and take credit for, some of them. For once, let the people see the genuine cost to them of having a government.
Find out
more by contacting Citizens for an Alternative Tax
System (CATS) at 1-800-767-7577 or visit their web site at www.cats.org or call the CATS Las
Vegas Chapter at (702) 454-5736.
CATS is a national
grassroots, non-profit organization committed to
bringing about the end of the income tax and the IRS
by replacing both with a national retail sales tax
(NRST).
Become a member of a group of like-minded
citizens who are tired of this insane tax system and
demand real change from our elected representatives
in Washington, D.C. Join CATS now!!
© 2001 by D.P. "Bracken" Bracken
(Permission to copy in all or part and distribute freely as long as credit is given to author and Citizens for an Alternative Tax System.)
