Today, we bring you a new feature on Biblical Conservatism that we'll be test driving throughout the next couple months: a mid-week Best of Biblical Conservatism Post, to compliment new posts on Monday and Thursday.
Today's post comes from July 13, 2011. At that time, we were in the heat of the last Debt Limit Battle.
This week, as the Debt Limit battle continues, we've been explaining
the truth behind the liberal talking points that the Drive-By Media
won't tell you. Today, we're going to dive into the truth behind the liberal idea that raising taxes on big businesses won't effect us, the
middle class taxpayer.
As usual, liberal are applying
an expectation of static consequences to a new tax. liberals always
assume businesses don't change their behaviors or, in this case, their
prices, when taxes are increased. There's an unfortunate truth behind
it: Corporate taxes are ultimately passed along to the consumers. That
means YOU are paying for it. Liberals would have you believe that if
government imposes a tax on Proctor and Gable, for example, that means
Proctor and Gamble just pays the extra tax out of their profits. In
reality, the cost of that tax is rolled into the cost of that bottle of
Tide you're buying. Either that or they step back production to continue
to maintain the same profit margins. (1) Lower production means fewer
employees, by the way.
That's the problem with liberal
economic assumptions; they always assume the rosiest of scenarios. Unfortunately, raising those corporate taxes hurts you. It means either
the company cuts production and people lose jobs or the price goes up.
Either way, it hurts the middle class. That's the problem liberal don't
tell you: you pay for that tax increase.
me? Did you know that the United States Fuel Tax and state fuel taxes
were hypothetically supposed to be levied on the gas station? Guess
what, it isn't. You pay it. It's included in the prices. (Somewhere in
the history of the gas tax the gas stations and the government dropped
all pretenses and just advertised the price as "all taxes included).
Before you lambaste the "evil gas station owners," the current Federal
gas tax is at $0.18 per gallon and the average gas station's profit on a
gallon of gas is $0.07-$0.10 per gallon. (For those of you from Palm
Beach County, FL, that means the tax is somewhere between $0.08 to $0.11
per gallon OVER their profits.)
For the most part,
gas stations make their money selling you a Mountain Dew, a pack of
Twinkies and a tin of Altoids, not on gas. Even on a full tank they're
only making a buck or two profit. If I fill my car's 13 gallon tank (I
drive a Chevy Malibu for those who care), that means a gas station on
the high end of the profit range is making $0.91 - $1.30 of profit on
me, once a week. Meanwhile, the government is making nearly twice that
amount taxing you. So who's the one who is gouging you again?
there's no legal way to force the corporations to not roll those taxes
into their prices. By the way, they aren't doing anything wrong. They
are simply maintaining a net profit margin that makes their investment
(aka risk) worthwhile. It's either going to lead to cutting production
(which means cutting workers) or raising prices.
the liberal lie: Raising taxes on corporations isn't raising taxes on
millionaires and billionaires. It's raising taxes on you.
(1) Reality Check: Liberal Tax Policy Has Not and Will Not Succeed