Wednesday, September 24, 2008

What Should Barack Obama Know About Corporate Taxation?

Ok people, just a short entry here. Senator Barack Obama, the Democratic Party Presidential Candidate, is usually short on substance when it comes to how he will achieve his goals. However, one thing has been pretty consistent - he wants to raise taxes on corporations.

You might think that's a good thing if you're into the rich vs poor, Us vs them politics that the Obama campaign is using but I'll tell you this - Obama has never run a corporation for profit. He hasn't been a CEO, CFO, or COO. For that matter he apparently hasn't ever taken high school business or economics. If he had he would have learned a major truth...U.S. CORPORATIONS DO NOT PAY TAXES.

Go ahead and argue the point and you'll be wrong. Corporations DO COLLECT taxes as directed by the law, and corporations DO SEND that money in to the U.S. Treasury or other governmental agency as required. BUT...they pass that cost on to the consumer. I'll say it another way. Any tax levied on a corporation is counted as a cost of doing business and any cost of doing business is figured in to the final selling price of the corporation's product or service. Any raise in taxes on corporations as Barack Obama has repeatedly suggested will raise prices YOU PAY.

That's right, a tax increase on corporations is a back-door tax ON YOU!