The power to tax is the power to destroy

Happy Tax Day.

ASM826 says something that people keep having to say, because most folks keep ignoring:

There is an important difference between individuals being taxed and corporations being taxed. If the government raises a tax, people effectively have less money. They take some, you have less to spend.

Corporations don't work that way. When you tax a corporation, they add the tax to their expenses. They have to, that's what a tax is to a corporation, it's an expense. It raises the cost of the product. They pass it on to the consumer. Every time, all the time.

Corporations don't pay taxes, they collect taxes.  From us.

But there is one other possible outcome.  What if a corporation can't raise prices?  Say, if there's fierce competition?  What does the corporation do?

They lay people off, is what they do.  Meaning they have to cut operating costs by the amount of the tax, and by far the biggest part of "operating costs" are labor costs.

So when the Progressives start talking about corporations paying their "fair share", just remember that they're coming for us.  Either all of us - in the form of higher prices - or some of us - who will join the unemployment line.

But remember, higher costs for the middle class and the poor, and higher unemployment is called "social justice".  And remember that somewhere in Texas, a village is missing its idiot, or something.