ECON 101 for Liberals....


 I listened to Joe today. He told me that Corporations pay zero income tax and the Billionaires pay a lower tax rate than Firefighters. He is correct. The implication is that this is a bad thing but it isn't.

Corporate Tax is a hoax. Liberals do not understand how to manage a business. All cost to the business are bundled together and divided by the Units of products sold. This gives a fixed indirect cost to be added to the cost of goods in the establishment of a Unit selling price. A Simple Example: If a business has rent, utilities, cleaning services and taxes they add them up for the last year. Say these indirect cost total to $200,000. They look at sales and discover they sold 20,000,000 units or widgets or iphones or hairdryers, whatever. They divide the indirect cost by the total Units sold and find out that its 10 cents per unit. This ten cents is added to the direct cost of making and selling the Units or widgets. Get it? The combined indirect and direct cost are added together and become the base cost per Unit. This base cost is then "Marked up" to create a sell price.

In the end, all taxes are added to the cost of the Unit and the consumer pays these cost. Corporate tax is really paid by consumers in the price of the things they buy. To increase Corporate Taxes is to create a hidden tax on consumer...YOU...spending.

Nobody pays Tax Rates. When you pay income tax it is calculated in INCOME, not wealth. If you own a home and it is worth a million dollars, it has nothing to do with your income and you do not pay income taxes on the value of the home. You only pay income tax on INCOME. Moreover, the tax rate is unimportant because you pay taxes with DOLLARS...not percentages. Example: Jeff Bezos is worth Billions in company stock. His income is much lower. Over the 12 year period from 2006 to 2018 Bezos reported income of $6.5 billion and paid $1.4 billion in taxes. The rate was 21.5%. Yes some other people pay higher tax rates but nobody pays more dollars. Tax rate comments are a Liberal con to create the motivation behind increasing taxes and stealing other peoples money.

America is rich. We have plenty of money. Taxes do not need to be increased. We spend $700 Billion a year on the military and we wasted a Trillion dollars in Afghanistan. Spending is our problem and giving Congress MORE money to spend will only make the problem bigger.

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