Friday, July 27, 2007

A Pesky Idea

The Tax Foundation posted a Piece which again started my Mind wandering in strange places. William Randolph suggested in a Working Paper for the CBO that 70% of the burden of Corporate taxes fell on Workers, and 30% fell on Stockholders. The Tax Foundation found that a Cut in Corporate Taxes would benefit low-Income Households more than would a Cut in Income Taxes. I believe innately in the construct of their analysis, but doubt the economic value of their Solution. This led me to consider a Counter-Solution to the exhibit fact.

My flexible Reasoning said the Solution lay in Transparency. It is quite easy to require with little Accounting effort that Corporations visually list the Dollar Cost going to Corporate taxes of the Cost of their Products, reduction of Wage levels to Employees, and reduction of Dividends to Stockholders to pay for Corporate taxes. Consumers suddenly find the Government Cost of their acquisition of Consumer Products, Employees suddenly understand how much the damned Government costs them personally, and Stockholders can curse the Government.

A magnificent Plan emerges with this simple devise: Consumers attain the right to Vote through the allocation of their Consumption Dollars, Employees can protest an overgenerous Tax assessment on themselves with a Wage negotiation instrument, and Stockholders can curse the Government as they potentially pay their correct Impost as defined by the original Intent of the Corporate Tax. Understand that this form of Taxation desires a Charge upon successful (and only successful) achievement of Business endeavor. It is an outrageous, but not unethical, demand that the Successful in Society pay an additional Impost simply because they enjoy the amenities of a Culture. lgl

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