Robert Whiteaker: Corporate tax cut helps US companies
I am continually amazed at how little some people understand about taxes. In Richard Howell’s letter to the editor (Feb. 1) he refers to the new corporate tax cut as “corporate theft.” Let’s be clear, the only real tax payers are individual citizens like you, me and Mr. Howell.
Corporations do not pay taxes. Period. They may be assessed and remit taxes imposed by federal and local governments, but those taxes are just expenses to them and are included in the price of the items they produce and sell.
The new tax cuts could reduce the prices Mr. Howell and others pay for those products, or used to increase employee pay (as many companies have already done), or for new plant and equipment that would benefit the overall economy and thus Mr. Howell and others indirectly. Lowering our corporate taxes also helps U.S. companies compete with foreign companies that pay lower tax rates.
So, are we clear? Corporate tax cuts in general are a benefit to consumers and just a reduction of business costs to corporations who will pass the savings on to its customers or utilize them to otherwise improve or grow their businesses to remain competitive.
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