>>>*Somehow this old man has managed to survive in business for a shade over 5 decades, without a business failure (although one got close, thank you President Carter).
Every business, every corporation must and DOES pass through the costs of doing business to their customers.
A tax is simply that, a COST of doing business. For example, a corporation, LLC, or any legal business entity set up seperate pays taxes on it's income, then when any profits are passed through that money is taxed AGAIN as ordinary income.
The same holds true of Capital gains, normally the company invested in pays taxes, then passes any remaining profits on to be taxed again at the capital gains rate. Of course that lessor capital gains rate is not just for the rich, anyone can invest and receive that lower rate. That money is not really taxed at a lower rate, it is usually higher when all factors are added in since it is taxed at least twice, with some investments it could be many many times taxed before distribution. An example might be a mutual fund that invests in corporations, those in turn invest in OTHER businesses, on and on.
Therefore, without fail, increasing taxes on a company will result in an increase in the costs of the goods or services they supply. Note sometimes competition might dictate that the business absorbs the added costs, this is also a sign of a business that might well be on the road to failing.
In those situations, normally staffing is cut first to reduce costs, adding to the lack of government revenue.
This in turn affects EVERY single cost of every single bit of goods and services sold, eventually. Yes, everything.
In other words, a "tax" on the wealthy is just a tax on the citizens in the form of increased prices, hidden within pretty comments about "paying their fair share" and "Just on those making $250,000 a year."
The real truth is that taxing those making that much and more at 100% will NOT solve the deficit, (not even close) the roughly 47% of our citizens that are not now taxed MUST be to cover that shortfall, if our Nation is to manage it with revenue alone.
Just some thoughts.....*EB
