Wednesday, July 13, 2011

A Thought on Taxes

If you use the justification that businesses are making good profits to raise taxes on businesses, what will they cut from their budget to pay for the new taxes?  Since the purpose of a business is to make profit, I would guess that the business would cut from the budget whatever would have the lowest impact on their profit.  I highly doubt that they would take that money that they need to pay for the new tax directly out of the profit.  And I highly doubt that that business's executives would cut their own salaries. They might lay off some employees instead.  Who knows, I do not have experience in business, so I could be way off.  However, it goes against my reasoning that any taxes on business would be a good idea.


  1. Well put –businesses tend to just pass on their extra costs to consumers (sometimes even before a tax is introduced) or sack workers. There’s plenty of evidence of this here in Australia. I can’t blame them either.

    On the other hand, for a government-friendly business to do so is disgusting. What’s more, when businesses receive free money from taxpayers, I don’t see them drop their prices. This also irritates me no end.

  2. I say remove all government involvement in business, including subsidies. If Australia is anything like Canada, there are many government-owned corporations. I say privatize them all and let the consumer decide which one to patronize. The government should always act in the best interest of its constituents. And, since that interest varies wildly (except with regards with national defense, and a few other things, like guaranteeing freedom), the government should not act at all.

  3. Agreed. I’m very sympathetic to your view. When Big Government picks winners and losers in business, the working classes often lose.

    The sink-or-swim doctrine seems less controlling and practical, in the long-term, at least.

    I think it’s why I relate to Bjork’s song, Hunter: “I thought I could organize freedom| How Scandinavian of me.” She nails it too.


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