Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Path: utzoo!linus!philabs!cmcl2!yale!husc6!seismo!lll-crg!lll-lcc!styx!mcb
From: mcb@styx.UUCP (Michael C. Berch)
Newsgroups: talk.politics.misc
Subject: Re: Unemployment shifting
Message-ID: <20857@styx.UUCP>
Date: Sun, 14-Sep-86 22:17:08 EDT
Article-I.D.: styx.20857
Posted: Sun Sep 14 22:17:08 1986
Date-Received: Tue, 16-Sep-86 05:32:35 EDT
References: <1291@drutx.UUCP> <907@gilbbs.UUCP>
Reply-To: mcb@styx.UUCP (Michael C. Berch)
Organization: Lawrence Livermore Laboratory, Livermore CA
Lines: 24

In article <907@gilbbs.UUCP> mc68020@gilbbs.UUCP (Thomas J Keller) writes:
> [. . .]
>    Of course, this ignores the reality that corporate entities (businesses,
> really) ****DON'T PAY TAXES****.  Face it, it's true.  The cost of taxes paid
> by any properly managed business are passed on to the clients or customers of
> that business, through higher prices.  Thus, taxes may be paid *THROUGH* a
> business, but seldom, if ever, are taxes paid *BY* a business.

This is hogwash. In point of fact, corporate profits are (in general) 
subject to DOUBLE TAXATION: once via the corporate income tax, then
again when the after-tax profits are distributed to shareholders and
are subject to the individual income tax. Whether this cost of business 
can be administered by future receipts is economically irrelevant; the
point is that it diminishes the profit that can be transferred to the
owners of the business.

If we were to believe Mr. Keller, corporations or other businesses
don't really pay rent, nor salaries, nor utilities, because all they
do is pass their costs on to customers. Interesting view of economics...
And he calls libertarianism weird?

Michael C. Berch
ARPA: mcb@lll-tis-b.ARPA
UUCP: {ihnp4,dual,sun}!lll-lcc!styx!mcb