The Rich DO NOT Pay A Majority Of The Income Taxes!!!!!

The Rich complain all the time that their taxes are too high.  A figure came out earlier this week that 47% of Americans do not pay income taxes.  Which, on paper, is probably true.  Anybody who has a job, has income tax taken out of their paycheck.  But when you file your taxes, if you get back more than you paid in.  You technically didn’t pay any income taxes because you got all the money back in your income tax refund.  This gives the rich the argument that they pay a majority of the taxes.  Let me explain how they DO NOT!! 

If a person makes 100k and has to pay 30k of that in taxes, that is the cost of doing business!  The 100k (Gross Earnings) is not your money.  It’s the money before you pay your tax bill.  The 70k (Net Earnings) is your earned money.  No different than if I make $15/hr (Gross) and my (Net) pay comes out to $11.50/hr.  The $15/hr (Gross) money was never mine; I never had control over that money.  The $11.50/hr (Net) money is mine, it’s what I have control over! 

Your taxes are factored into your cost of doing business.  If they weren’t, nobody would be in business.  No matter what job you do, employee or self-employed, everybody has a cost to doing business.  If I’m a business owner I have many cost to pay; electric, salaries, health insurance, rent, etc..  I have to factor these cost into what I charge for my product or service.  If I’m an employee, I also have cost to get to work.  The price of gas, have a car, meals, etc..  I have to recoup this money from my salary.  If not, I can’t afford to work.  And what determines a persons pay?  The collective market.  Take a plumber for example.  The world of plumbers collectively and subconsciously determine what it will take for them to go to work.  If the going rate for a plumber is $20/hr, then you’re not going to be able to hire one for $5/hr.  And the collective group of plumbers factor in all cost to determine $20/hr, including their income taxes.  The figure the collective group of plumbers determine they’ll go to work for, is their (Net) pay.  And in order to get a (Net) pay of “X” the (Gross) pay must be “Y.” 

In this theory, the customer is the one paying the income taxes.  The customer is the one who pays all the expenses of the company, and we are all consumers!!  When you buy a can of soda, you are paying for all the salaries of the company, all the taxes of the company, and all the bills of the company.  If a company can’t stay competitive, they go out of business.  If an employee can’t stay competitive they lose their job, unless they're the boss's family or friend. 

Another example; Say I put a $1,000 tax on all plumbers.  The plumber will say, “I can’t pay that, that cost will have to be passed on to the customer.”  So all plumbers raise their rates to cover this new $1,000 tax.  So the customer now pays the new tax!  Business will say that they can’t always pass the new cost to the customer.  That they’ll have to “eat it.”  This is probably true at times.  Just like if I work for $15/hr and the price of gas is $2 a gallon.  And then the price of gas goes to $4 a gallon, even though I still make $15/hr.  It now cost more for me to get to work!  I can’t immediately pass that new cost onto my boss!  I have to wait for the collective market to do it! 

Even though the tax here was on the plumber, the customer is the one who paid it!  And this is how the Rich say they pay all of the taxes but they DO NOT!!  The consumer does!  Which is all of us! – Juggs Ó 2012

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