Who Will Really Pay for the Proposed Corporate Tax Increases?

The U.S. Treasury Department calculates that roughly half of the corporate income tax is borne by families earning less than $400,000 in annual income. These families will bear the cost of any increase in corporate taxes.

Even though a corporation physically writes the check to the Internal Revenue Service when it pays its taxes, a corporation is only a legal fiction — a form of doing business. Just like rent, salaries, and other expenses of doing business, corporations pass the cost of taxes on to people.

All economists agree that people — and not legal entities — bear the cost of taxes. The bottom line is that the true burden of the corporate income tax is on all Americans. The corporate income tax results in workers being paid lower wages, savers earning less on their retirement accounts, and people paying higher prices for the goods and services produced by corporations.

Economists universally agree that a substantial share of the corporate tax is ultimately paid by workers in the form of lower wages.

--

--

--

The Alliance for Competitive Taxation promotes U.S. jobs, investment and rising incomes through the establishment of a competitive U.S. tax system.

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Role of Innovation, Entrepreneurship and Self Employment in Economic Growth

A Fragmented Mess of Opportunity

Whither Capitalism?

Austerity vs Inequality in the United Kingdom

Protecting Jobs & Incomes through the COVID-19 economic downturn

Never Let A Good Crisis Go To Waste

#Accelerationism

Market Outlook — Are You Listening?

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Alliance for Competitive Taxation

Alliance for Competitive Taxation

The Alliance for Competitive Taxation promotes U.S. jobs, investment and rising incomes through the establishment of a competitive U.S. tax system.

More from Medium

Moving abroad is not for the faint of heart

Is Chicago Real Estate a Good Investment? 5 Reasons To Do It Now

“Fuck them while they’re drunk”!

The Truth about our generation that you may not understand