This video on the adverse and sometimes not even thought of effects of taxes on business is very important for the time we live in today. I have some more thoughts about taxes and the coming debate that I will address in an update to this post later. For the mean time, enjoy another installment of my man, Milton Friedman.Comments welcome.
Blake
1 comment:
Ole Milton at it at again. Common sense at its best. People pay taxes, not business. The business tax burden is spread to the workers, customers, and shareholders. Disagreeing with Friedman on this point would be illogical.
By removing corporate taxes, the tax revenue would not decrease, it would shift. The workers would pay more in taxes, but their wages would grow and more workers would be employed. Prices for products would decline, allowing more customers to buy the cheaper products, sales increase. Shareholders would earn higher returns, giving them more to spend and reinvest. Without taxes on business, the tax revenue would still be generated. So why is the tax code like it is? Simple.
Taxes are spread around so that people won't realize how much they pay to the government.
Income tax, sales tax, property tax, gas tax, social sercurity withholdings, capital gains tax, and even indirect taxes passed on to consumers. Add up all the taxes that the government takes from individuals and it would be physically sickening...
It would be nearly inmpossible to calculate the total dollar amount you pay in taxes both directly and indirectly in a given year. And thats just how the government likes it.
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