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From: ems@amdahl.UUCP (ems)
Newsgroups: net.taxes
Subject: Re: Tax reform (another screwing, without vaseline)
Message-ID: <1685@amdahl.UUCP>
Date: Mon, 17-Jun-85 18:25:16 EDT
Article-I.D.: amdahl.1685
Posted: Mon Jun 17 18:25:16 1985
Date-Received: Wed, 19-Jun-85 03:13:02 EDT
References: <3035@drutx.UUCP>
Organization: Circle C Shellfish Ranch, Shores-of-the-Pacific, Ca
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> >    While you are at it one could increase the tax rates on corportaions.
> >They pay too little as it is. They pollute the air, water, and ground. 
> >They exploit labor. And they get a tax break too ?
> 
>       "There is no free lunch". ...
> 	Reguardless of the legislation enacted, you cannot get blood
> from a turnip, and you cannot get taxes from a mirage.  The corporate
> tax is real; the notion that there is a corporate entity apart from
> people is an illusion.
> 	Corporations involve people; people build them, operate them,
> supply them, invest in them, work in them, and purchase their products
> and services.
> 	Raising corporate taxes makes Congress and the President look
> good, because it *appears* that they shifted the tax burden away from
> people.  It makes the corporations look bad because the taxes must be
> paid through higher prices, lower wages, higher unemployment, and lower
> return on investment.
> 	Only people pay taxes, and that includes corporate taxes.

And that is the issue here.  Shouldn't the people who profit from the
corporation pay some extra tax for the priviledge of using common
resources?  If yes, the most effective way to administer the tax is
to tax the corporation.  Some of the tax may go into the cost of
the product to the consumer, some into lower return on investment.
In either case, those who benefit from the good produced pay for
the social goods consumed by the corporation (air, water, police and
fire protection, military protection, etc. )

What is wrong with a simple flat tax with one deduction.  That deduction
set at the average return for the prior year.  If you are below average
you pay no tax.  Above average?  Take your gross, subtract the average,
pay a flat percent of what is left.  Those who win at the economic
game get to pay for it.  Those who are loosing can at least watch the
action for free.

-- 

E. Michael Smith  ...!{hplabs,ihnp4,amd,nsc}!amdahl!ems

This is the obligatory disclaimer of everything. (Including but
not limited to: typos, spelling, diction, logic, and nuclear war)