Stop Pulling the Wagon

Presidential “wannabe” Kamala Harris  has a plan to raise tax revenues “without raising taxes on the middle class”.  She wants to raise “Corporate Taxes” from 21% to 28%.  Seems those “Greedy Corporations” are not paying their “Fair Share”! 

Have you ever been so frustrated you want to just scream out loud because folks just don’t seem to “get” something that is such an obvious truth?  

For many years many experts and writers like myself have “preached” the word that Corporations don’t pay taxes, their customers do.  Corporations don’t have money tree orchards out behind their factories.  Their only source of revenue is the products or services they sell to their customers.  If you raise taxes on the corporation that makes toothpaste,  that corporation has to raise the price on the toothpaste they make.  Their only other source of additional revenue would be to cut costs/payroll.  The additional “tax revenue” is actually paid by the working class and poor when they buy the product.  It’s called inflation. 

This is not rocket science. Politicians don’t want to tell the working class and poor they are going to raise their taxes so they “scapegoat” the corporations into collecting the additional tax for them indirectly.  

If you want to look for a “Greedy Villain” let me suggest government who wastes a large percentage of the tax money they collect through miss-management, graft and corruption.   California for example “lost” 24 Billion Dollars in funds for Homeless projects in the last fiscal year – the money just “vanished” and nobody seems to know what pockets it ended up in.

I wrote a satirical article some 5+ years ago that demonstrates in a truthful way that government at all levels does little to nothing to produce a useful product but still wants to tax it at all levels.  The article is reprinted below:

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THE LITTLE RED HEN OIL COMPANY

Original Story by Paul Galdone

Little Red Hen version by Bob Bandy

ONCE UPON A TIME there was a little red hen who wanted to start her own oil company.

Who will help me find the oil she asked? Not us said the Federal Government!  Not us said the State Government!  Okay, said the Little Red Hen.  I will find it myself, and she did.

Who will help me get the oil out of the ground she asked? Not us said the Federal Government!  Not us said the State Government!  Okay, said the Little Red Hen.  So she did it herself.

Who will help me get the oil to the refinery? Not us said the Federal Government!  Not us said the State Government!  Okay, said the Little Red Hen.  I will transport it myself, and she did.

Who will help me refine the oil into gasoline she asked? Not us said the Federal Government!  Not us said the State Government!  Okay, said the Little Red Hen, I’ll do it by myself.  And she did.

Who will help me transport the gasoline to the Service Station she asked?  Not us said the Federal Government!  Not us said the State Government!  Okay, said the Little Red Hen, I will haul it there myself.

Finally the Little Red Hen’s gasoline is sold.

Who would like to share in the profits she asked?  

We would said the Federal Government and we demand 18.4 cents per gallon.

We would said California State Government and we demand 58.3 cents per gallon.

Looking in her pocketbook the Little Red Hen found that she only made a net profit of 7 cents per gallon.  (source Forbes & Factcheck)

Later, Federal Government and California State Government notified the Little Red Hen that since she was so greedy they were going to tax her income for the excessive profits she had made.  

7 cents a gallon profit.  Those darn oil companies sure are greedy aren’t they!

You can’t make this stuff up.

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Editors note:  all these numbers were well researched and accurate when I wrote the original article in February 2019.

Bob Bandy – August 2024