This is in response to the letter from someone presenting the silly shoes school of economics. The writer claims that business in the golden bygone days paid a 47 percent tax rate. Poor silly shoes. Business does not pay a cent in taxes. The customer of a business pays all the taxes, wages and all other expenses. All the business does is adjusts its prices to reflect its expenses. The customer then pays the higher price so that the government can take its tax. If the price, including the tax, is more than the customer will pay, the business goes under, taking the jobs and any tax right down with it.
The first rule of economics is if you want less of something, take money away from that something. We know that if we slap a tax on cigarettes for instance, sales go down. We like this outcome as a society.
If we put extra burdens on business, we get fewer businesses, fewer jobs and at the end of the day, a lower tax take. This is a bad social outcome. Business would operate best if it paid only for those things that it uses, sewer hook ups, street and highway maintenance and so on. Taxes beyond the basic usage burdens business and we get fewer jobs.
Arizona has lost 500 restaurants in the last few years. If you think business is a big fat tax target, just look around town and count the empty store fronts. If you think we have plenty of jobs, try to find one. Everyone depends upon business profit for their bread and butter, either directly or like firemen, through the taxes generated by business profit.
Please Mr. silly shoes, go talk to a businessman and see what he thinks. Or start your own business and employ me. I could use a job.