Taxes, Taxes, Taxes: Who Really Pays The Most?

All taxes are paid by the citizens themselves, regardless of whether they are paid directly, as in sales and income taxes, or through increased prices of products and services, or through “fees” imposed by governing agencies. How does your car registration “fee” differ from a tax?
Not only does each citizen directly or indirectly pay every penny of tax money that is collected in this country, but most people’s perception that the “rich” and “corporations” don’t pay their “fair share” is accurate.
These people and businesses can afford to pay an attorney $10,000 to show them how to save $500,000 in taxes. Most likely, you can’t. The tax laws are made with loopholes for the “rich” and for certain businesses.
Part of this is because it is these people who own or control the majority of the property in this country. And no progress can be made without a significant investment of capital. If these people and businesses are given the right reasons to invest their capital (such as tax breaks) the economy will continue to function and grow.
If they are overburdened with taxes they will either move to Bermuda or start a cycle of inflation by raising prices. Either way, you, Joe Citizen, will end up paying more either directly in the form of taxes or indirectly as your cost of living increases.
It is a double-edged sword. Joe Citizen wants “rich people” and businesses to pay their fair share (though Joe does not realize that he ends up paying it anyway) but the government knows that they can’t kill the golden goose (and the economy needs a good “goose” every once in a while).
So tax laws and regulations are passed which seem to target the “rich people” and businesses but with enough loopholes so that no real tax increase occurs. And the politicians can blame the other party for the loopholes. But both know this is business as usual.
Make Joe Citizen feel good about paying his taxes by raising taxes on the “rich” and “wealthy corporations”, but give them loopholes so that little more is accomplished than adding another volume added to the tax code.


Leave a Comment