Ronald Reagan: Businesses Don’t Pay Taxes


“The most dangerous myth is the demagoguery that business can be made to pay a larger share, thus relieving the individual. Politicians preaching this are either deliberately dishonest, or economically illiterate, and either one should scare us. Business doesn’t pay taxes, and who better than business to make this message known? Only people pay taxes, and people pay as consumers every tax that is assessed against a business. Begin with the food and fiber raised in the farm, to the ore drilled in a mine, to the oil and gas from out of the ground, whatever it may be — through the processing, through the manufacturing, on out to the retailer’s license. If the tax cannot be included in the price of the product, no one along that line can stay in business.” —Ronald Reagan

[Source:  Patriot Post, Monday Brief,  Vol. 08 No. 51, 15 December 2008]

Notice how Reagan labels people who try to claim that business can be made to pay a larger share of the overall tax burden.  He labels them as “deliberately dishonest” or “economically illiterate“.  That puts things into perspective…doesn’t it?  He understood that all taxes charged to businesses are passed along to consumers or employees.  Why is this concept so hard for some to grasp?  It is basic economics.  When our leaders don’t understand basic economics, they should not be allowed to remain in office.  Consider that the next time you vote.


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