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originally posted by: schuyler
You are mostly correct, though I would take issue with social security. And this gets to the heart of the matter when you start talking about the "fair share" corporations supposedly do not pay. ALL taxes are paid by people, including corporate taxes. All a corporation does is pass the taxes on in the higher cost of their products. Everyone who works for a corporation, from high paid CEO to low-paid janitor, pays individual taxes on both income and dividends, and even capital gains should they sell shares.
So it's a myth and a displacement to claim corporations don't pay their "fair share" because if you decide Ford or GM needs to pay more corporate taxes to make everyone feel good, you just will pay more for a car. There really is no such thing as "corporate taxation." It all comes out of our pockets one way or another.
originally posted by: schuyler
You are mostly correct, though I would take issue with social security. And this gets to the heart of the matter when you start talking about the "fair share" corporations supposedly do not pay. ALL taxes are paid by people, including corporate taxes. All a corporation does is pass the taxes on in the higher cost of their products. Everyone who works for a corporation, from high paid CEO to low-paid janitor, pays individual taxes on both income and dividends, and even capital gains should they sell shares.
So it's a myth and a displacement to claim corporations don't pay their "fair share" because if you decide Ford or GM needs to pay more corporate taxes to make everyone feel good, you just will pay more for a car. There really is no such thing as "corporate taxation." It all comes out of our pockets one way or another.
originally posted by: TrueBrit
a reply to: schuyler
It is not necessary for the cost of taxation to be passed, in full, to the consumer. When dealing with a large company, with many managers, pen pushers, and high paid executives, the answer is to be found in cutting from the top of a company, not from the bottom. The bottom do the work without which the company cannot function. They make the product, provide the service, and keep the machinery running.
If we were to compare your average company to a vehicle, the masses of the staff would be the engine, the wheels, the axles, the segments of the vehicle which actually perform its major role, of moving around. The other parts of the organisation are like the less necessary parts of a vehicle. Your senior executives are cupholders, glove boxes, the little fancy mesh that goes over the gear stick to keep detritus out of the way. Their function is about trim, not the mechanical business of getting from point A to point B.
In short, they could afford to take a pay cut, and so they should be the first, and until they reach the point of being paid exactly as much as the lowest paid member of the necessary workforce, they should not be damned well complaining, because there is not a single executive at high level, who wants for a new pool cover every couple of years and enough money to educate their kids. They could live off their savings till the doom of the world, and they damned well ought to, because the chances are, that they got where they are by failing to pay a decent wage to those below them.