January 31, 2013

Corporate taxes only dilute citizen’s tax representation

Sir, I come from an oil-cursed nation where when there is an oil boom, our government becomes almost independently wealthy, and we the citizens become almost a nuisance to it, except for during Election Day, and this even though that oil income rightfully belongs to us. And in many ways something similar happens with corporate taxes. 

All corporate taxes will, no doubt, at the end of the day, one way or another, be paid by a citizen somewhere, most probably in a very regressive way. And that citizen payment will occur without the governments being held accountable to the citizen, allowing instead the citizen’s tax-paying-representation powers to be exercised by the corporations. 

Therefore, when I read well argued articles like John Gapper’s “Politicians should stop posturing on corporate tax” January 31, I can only sadly conclude thinking “what brilliant distractions the politicians sponsor in order to keep us citizens away” so as to be allowed to be lobbied, in petit committee, by corporate interests. 

Also, when corporations pay taxes on behalf of the not so blissfully ignorant citizens, this can quite often be an extremely regressive taxation, since the final tax bill might hit, one way or another, someone earning absolutely nothing. 

Of course, a zero corporate tax would imply that all investment income had to be taxed at the same level as all other income. 

And so… down with corporate taxes! The only ones who have the right to cover for a government expenses are the citizens and that right should not be diluted in any way. 

PS. This is not the moment, but if you have time, I would refer you to My Tax Paradise.