Passing the Buck–Literally
One of the key points of the Senate Democrats’ reconciliation bill is a minimum tax on U.S. corporations…for some, obviously, raising the income tax they are assessed.
Notice I said “tax they are assessed” instead of “tax they pay”–because they don’t pay taxes, not really. Sure, they file a return and submit money to the government…but it’s money we paid them for goods and services and if their taxes go up, so will the cost to us of their goods and services.
Look at things now…the cost of goods we buy in the store has gone up because of the increased cost of transportation. The companies that produce and sell the goods may absorb some of it, but not all and not for long. If taxes go up, that’s just another cost of doing business added on to all the rest…and passed right on to us, the consumers.
This idea of “tax the rich” or its cousin, “tax businesses”, is nothing more than political posturing three months before an election. It sounds good…and even better for the shallow politicians advocating it, the impact won’t be felt until after the election. For them, get the benefit of the scam now, and worry about the pitfalls when it might be on someone else’s watch.
That’s what makes the name of the bill, “inflation reduction act”, even more of a sad joke…because with the cost of those corporate tax increases being passed on to consumers, inflation will hardly be reduced–and in fact will climb even higher, even more quickly. Here’s hoping enough current officeholders will have the sense to recognize that…and the courage to prevent it from happening.
