FairTax Attack Dogs have Rabies
Every time I mention the FairTax, which is misnamed, I get slammed by emails from self important “Regional Directors” who are just rabid dogs chewing on invisible bones.

“Charlie,” one of the FairTax dogs amused me so I’m going to share.

His invisible bone is the tired old refrain about “corporations” pay no taxes. Corporations pass tax expenses back to people with higher prices. He wanted me to know this great “truth” since I reported that most corporations paid no federal income taxes. The study on corporate taxes was released this year by the GAO.

If we go by the GAO, corporations aren’t paying taxes. If they aren’t paying taxes, then they aren’t sliding tax expenses along to people. Sort of makes that invisible bone harder to chew, eh Charlie?

But, let’s ridicule the idea and not the person. Every year, I add up the amount of federal corporate taxes I pay as per Charlie’s bone. Then, I just include that in my wages for next year and charge them back. Same bullshit as Charlies spews.

But let’s be reasonable.

When a corporation makes no money, who paid the taxes? Of course, a corporation pays no income taxes if it doesn’t make any money. Yet, I bet if we check the balance sheets, expenses aren’t less with no federal income tax to pay. Changing the way corporations pay taxes, which is what Charlie wants under the FairTax, wouldn’t make that corporation solvent. It wouldn’t make that corporation able to ‘defeat’ foreign competition. Competition doesn’t reward bad management. Ask the CEO of GM who just apologized in front of Congress for decades of crappy management. Taxation didn’t ruin our domestic car industry.

What about a corporation that goes bankrupt? Who was paying the taxes? If you remember Enron and it’s sudden bankruptcy, after the management team robbed the employees, vendors, and stockholders, whatever was left of the corporation asked the IRS to return hundreds of millions in “overpaid” taxes. If you remember, the management cooked the books to show a profit that didn’t exist. The corporation paid the taxes on the cooked up income. So who paid the taxes? There wasn’t a sale to a person or another company. Who paid the taxes? The employees, vendors, and stockholders paid those taxes.

The really troubling thing about these invisible bones, the dogs keep chewing them. Never try to take a bone from a rabid dog. Not even an invisible bone. Unless you want your email box full of spit.
Posted by North Georgia Democrats at 8:46 AM
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