Why? Instead of succumbing to the liberals' factually challenged narratives "income inequality" and "social injustice," those Schlubs would be making more money, living in better homes, wearing nicer clothes, and eating better food. Their kids would be achieving better academically in better schools. And, they'd be saving money.
If the liberals are to be believed, for a central government to provide all of the goods and services that liberals want it to provide, the government must increase revenue. For liberals, the most "just" and "fair" source for that increased revenue should come from the corporate income tax. Increase the taxes on the profits of those behemoths, the liberals proclaim, and there will be no income inequality or social injustice. All will be well in the United Socialist States of Amerika.
What the Joe and Josephine Schlubs don't get--primarily because the liberals are so good at getting their message out--is that consumers, workers, and investors ultimately bear the cost of those increased corporate income tax rates.
To change that perception, all those Schlubs need is to undertake one, basic lesson in economics, care of Philip Cross of the Fraser Institute:
- Increased income tax rates cause corporate titans to take steps to offset those costs. For most corporations, the single, largest expense is labor. So, those titans, being as logical as they are, lower labor costs by lowering wages or even shifting operations to locales with lower tax rates (like overseas). Who loses? Joe and Josephine Schlub.
- Those corporate titans can also offset their taxes by increasing prices, passing the tax to consumers in the form of more expensive goods and services. Who loses? Joe and Josephine Schlub.
- The corporate income tax is a form of "double taxation." That is, corporate profits are taxed, first, as corporate income. They are taxed, second, when paid out in dividends and individuals file their 1040s. Who loses? Joe and Josephine Schlub.
For the liberals, it's a "marriage made in heaven." They can rail against the "greedy corporations" and all of those "evil corporate titans," knowing all along that they really putting it to the Schlubs...who never will connect the dots. They will continue to believe the narrative which tells them that liberals are the ones who care about and are dedicated to the health, welfare, and well-being of the Schlubs.
Enlightened by this one, basic lesson in economics that has the power to change the Schlubs' perception of the "fairness" of corporate income taxes, when liberals reiterate yet once again the narrative about all of those "greedy corporations" and how they should be taxed more, all of those Schlubs will be empowered to ask those liberals who are spouting economic nonsense one question: "How is it that we Schlubs always end with less income after taxes?
Let the discussion begin...
To read Philip Cross' analysis, click on the following link:
"Corporate Income Taxes -- Who Pays?"