Replace All Federal Taxes on Income with the Fair Tax Act , HR 25

Businesses Do Not Pay Taxes

Although this should be obvious, it isn't understood by many Americans. Politicians use that fact to demonize businesses and divide people. I'm attaching a simple "picture" file that can be used to illustrate that truth. Many times a picture is quicker and easier to use than words.

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Attachments:

Only People Pay Taxes.JPG, 170 KB
Only People Pay Taxes.pptx, 234 KB

Replies to This Discussion

Permalink Reply by Pat Conroy on March 8, 2009 at 8:06pm

Bill, you are so right. This applies to small businesses as much as to large corporations. I own a small software company that sells to other businesses. I guarantee that what a business pays my company for our software is added to the cost of doing business for that company. It gets put right into the price of the product just like raw materials, postage, and telephone expenses. Guess what? The taxes we pay (property, payroll, income, sales, etc.) just like raw materials, postage, and telephone expenses get put into the price we have to charge for our product.

So the company we sell to also has the taxes we have to pay built into what they buy from us.

I've got an idea. Maybe someone could develop some type of fair tax that would eliminate all these hidden taxes that people pay ;).

Permalink Reply by Robert Ike on March 9, 2009 at 7:57am

Bill,

Love the picture! It's a good visual to help explain how business taxes "really" work!

On a similar note, several months ago, during the monthly meeting with my CPA, I mentioned to him that Corporations do not pay taxes and the only one who DOES pay taxes in this country, is the individual.

He got a little irritated at my uneducated statement and gleefully informed me I was wrong and that he had just dropped off a quarterly Federal Deposit coupon for $44,000.00 to one of his clients! "See" he said, "that proves it!"

I just smiled and said "yeah, I'm sure the owners took out their personal checkbooks and paid it, right?". "Or did they just RAISE their price per unit a few bucks to cover the increase?" "And that" I continued, "shifts that $44K tax payment to the individual, right?" The look on his face when he realized I was right was priceless!

I urge every business owner to just make a casual statement that "businesses don't pay taxes" at their next CPA/Accountant meeting, then sit back, smile and watch as they try to prove you wrong!

Keep up the good work Bill!

Permalink Reply by Bill Rollyson on March 9, 2009 at 10:45am

Thanks guys. Pat, I uploaded it in powerpoint in case you want to add small business or make any other change.