Essential Truths of Corporate Business


Unfortunately, the taxes that businesses pay to the government are collected as part of the prices that they charge the consumer. In the rhetoric of class-warrior politicians (i.e. mostly Democrats and Leftists), one would think that the taxes simply come out of bloated and unnecessary profits. A profitable business, indeed, may choose to eat the costs and lose some profit in order to remain competitive. However, not all businesses are all that profitable. Many operating at the margins can simply be put in the red when an extra cost, like a tax, is imposed on them. They may have a limited time to cut costs before going bankrupt. If they fail, well, then the established and comfortably profitable businesses have lost some competitors -- they are not going to lose any sleep over that. Indeed, since higher taxes can harm the competition, maybe it will occur to the corporate fat cat (i.e. Warren Buffet or Ted Turner) to suggest to his politician friends that raising taxes on business might be a good idea. Everyone should pay their "fair share." Then, having done their good deed, they can retire to their ranches in Montana and enjoy federal subsidies for not growing food. The good works never cease.