Pop Quiz: Who pays the most taxes?
A. Corporations
B. Individuals
C. Non-profit organizations
D. Governments
The answer?
Governments do not really pay taxes, they collect them and spend them. If they do pay some taxes, such as gasoline taxes in the fuel purchased for city vehicles, it just passes to another government entity.
Non-profits don’t usually pay taxes … they are exempt.
Corporations don’t really pay taxes either. To companies, taxes are a cost of doing business and are passed along to the consumers of their products and services. In other words, taxes are no different than the raw material purchased to build the widgets. All costs get factored into the selling price of the widgets, and buyers pay that price. In essence, businesses are just middle-men that collect taxes from their customers and pass them along to governments.
So, that leaves individuals. That’s right. We, the people, pay ALL the taxes.
It’s actually pretty simple. Anytime you think someone else is paying the tax bill… that the big corporations are paying a big portion of the taxes… remember this. You and I are the only taxpayers.
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