Editorial by Barbara Cornell.

Syndicated from Barbara Cornell’s personal blog.

Flat tax
Consumption tax
Corporate tax
Tax breaks for the rich

If you find yourself spending your time arguing about or concerning yourself with these topics, then you’ve allowed yourself to be duped.

The economy is a giant, circular river, and tax is a huge dipper that the government uses to remove water from the flow. It doesn’t matter where in the flow of the river you put your dipper, the effects are the same.

Pick a spot in the river and reason it through:

Taxes are increased to material suppliers. What now? They increase their prices to the manufacturers who buy their materials, who respond by increasing their prices to the retailers, who respond by increasing their prices to the consumer.

All taxes are eventually paid by the consumer. It doesn’t matter who «pays» the taxes directly to the government, eventually it is the consumer who absorbs the cost of all tax.

Arguing about whether it’s fair to tax or not tax based on purchases or gross income, or whether we should tax or not tax corporations before or after distributions, is missing the point.

The only way to reduce the actual burden of tax to anyone is to reduce the size and scope of government.

Arguing otherwise is allowing politicians to distract you from the truth.