Isn’t “Corporate America” coming out ahead (again) by abolishing the income tax?
Depends. Corporate America, like you, will no longer have to pay income taxes. From that perspective, businesses come out ahead—but so do you. Everybody wins by no longer paying an income tax. Once companies can stop passing along the costs of the regressive income tax, overall production costs will drop. This will cause a drop in prices. However, for consumers the new retail sales tax will somewhat cancel this effect. Nonetheless, with reduced costs and a higher market demand, companies will have to spend more money to retool for higher production. Overall, however, when discussing income taxes Corporate America neither comes out ahead or behind. Corporations merely pass on to the next person the cost of doing business known as taxes. You the final consumer pay the combined effects of every corporation’s income tax. Once the income tax is abolished, corporations need no longer pass on this cost of business to you. You come out ahead.
