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Ehis Odijie

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Why I think Government should abolish corporation/business taxes.

Why I think Government should abolish corporation/business taxes.

Only people can pay tax, so a tax on business is a tax on somebody - the question is who?

There are three groups involved in every commercial venture (1) The shareholders (2) the employees and (3) the customers. A tax on business must be paid by one of this group.

It is either it paid by the shareholders through reduction of profits, or the staffs in reduction of salary, or the customers in a slight increase of goods or services – there is no other way to cover a business tax.

To know how businesses respond an exercise was conducted in UK to see how Tesco responded to an increase in taxes. It came in the form of a slight increase in the prices to customers – so a business tax is a duty on the consumer. Also – the UK government imposed an extra levy on banking recently and it filtered down to the customers.

If we eliminate business tax today it will fitter down to reduction of prices in competitive industries.

There is nothing wrong with this form of indirect tax but it is better to adopt the right language and call it what it is.

Topics: business economics taxes uk
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    R H 20+

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    Aug 15 2012: I guess I'd start with why we have taxes in the first place. To pay for gov't. Why do we have gov't? To 'protect' the people from harm, both from inside the country and without, and to support a civilized society. When I look at 'corp/bus', I certainly see wealth generation for society, but also unemployment, environmental disaster, trade wars, political influence, legal expertise/manipulation for immunity, and a host of other side-effects of corporate malfeasance. These lead to expensive environmental, humanitarian, and societal 'repair and maiintenence' issues such as welfare, unemployment insurance, public healthcare, and city services that are not profitable and/or competitve enterprises. Prices would not necessarily 'filter down' to the consumer. That would depend alot on market share and demand. Prices would eventually find equilibrium and those with huge market share and demand would become much stronger and dominate - if they didn't have to pay for the damage done through taxes. I agree that we have out-grown the current system, but many other changes and understandings of influence, much more sophistication, would have to be identified before I would vote for such relief.
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      pat gilbert 50+

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      Aug 15 2012: Lots of conjecture none of it based on fact or a understanding of economics or true.

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