Consumer’S Pay Corporate Taxes

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Editor:

A recent letter called for corporations to pay more income taxes. Corporations figure any income tax increase into the cost of their goods and services, which means that the public pays for that tax increase. In some cases corporations try to offset the effect of a corporate income tax increase by cutting the number of people they employ or cut back on their pay and/or benefits.

A corporate tax increase is paid for by the consumer, the corporation’s employees and the public in general through the inflationary effect of the higher prices.

It is populist and “feel good” to call for higher corporate tax rates but the corporations simply pass the cost of the tax hike on to others.

Not “feel good” at all when you really think about it.

Bill Suphan

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