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Thursday, January 27, 2005

Corporate Taxation 101

I oppose any and all taxes on America's corporations; state, federal, municipal. The reason? We end up paying them.
Passing The Malpractice Buck

When Maryland Democrats overrode Gov. Robert L. Ehrlich's veto of a medical-malpractice insurance-reform bill, which included a tax on health maintenance organizations (HMOs), earlier this month, House Speaker Michael E. Busch gushed, "I think the citizens of Maryland were the winners." And what exactly have Marylanders won? An increase on their HMO premiums that will cost families about $200 a year. In the slow-moving train wreck that has defined Maryland tort reform recently, HMOs did the most unsurprising thing of all in response to the 2 percent tax hike: They have passed the costs onto their customers. (link)
When a company is faced with higher costs, including higher taxes, it has few options other than to raise the price of the commodity or service it provides. In essence, a company pays no taxes. Its employees and customers do. And not only is this getting to be a costly proposition for all of us but it targets only American corporations. A manufacturer in Manila is immune to American corporate taxes; a circumstance making the tax doubly harmful; the product produced there becomes more competitive.

So when your local politician tells you he or she wants to go after those evil corporations, understand who's pockets he/she is about to reach into.

That would be you.