Wednesday, June 10, 2009

Corporate Taxes, and Job Creation

CORPORATE TAXES

I may have done a post on this previously, but it never gets told enough.

Who exactly pays Corporate Taxes? These are the taxes the government; Local, State and Federal; impose upon corporations and businesses both large and small.

So I ask again, who pays these taxes? The first answer most people conclude is The corporation or business that is being charged those taxes. But, where do they get their money to pay those taxes? They get it from the consumer of the goods or services they provide. When the price of being in business goes up, whether it be an increase in manufacturing costs, and increase in labor costs, or even an increase in regulatory or taxation costs, these corporations and business pass the expense on to the consumer.

So please stop crying for more corporate taxes. I pay enough for the goods and services I purchase already.

JOB CREATION

I have been hearing a lot lately about the government creating jobs. I became curious, How exactly does the government create jobs? I went even deeper, How are jobs created?

Jobs are created when a demand for a good or service out paces the production or availability of the particular good or service. Which causes the manufacturer or provider of those goods or services to find ways to narrow the gap between supply and demand. The quickest and typically easiest way is to hire more employees, to create more goods or to provide more service. That is job creation.

Now that we know how jobs are created, How can the government do this? What goods or services does the government provide? How can they create a gap between the supply and the demand? Thus creating a need for job creation.

Lets answer the first part. What goods or service does the government provide? Well thankfully the government doesn't provide any goods. so that narrows are search to what services does the government supply.

Well if we read the Constitution:

Establish Justice: The government runs the courts. How can more jobs be created there? More criminals, more civil suits.
Insure Domestic Tranquility: Keep our streets safe from crime. How can more jobs be created there? More crime.
Provide for the common defense: Military. How can more jobs be created there? More wars.
Promote the general welfare: The health and financial security of the people. How can we create more jobs there? More people lose their current jobs, More people get sick.
Secure the blessing of liberty: Stay free. I really don't think this something the government does, and is more in line of what the government doesn't. So this would be a job for the government that would actually require less jobs to do better.

So now after we figure out what the government provides, and how jobs are created. Do we really want to live in a country where the government is the ones creating jobs. More crime, More Criminals, More War, More Sick and More Poor.

The Best and only true job creation comes from the private sector. The same corporations and businesses that are being asked to pay more in taxes.

Who Is Creating Jobs?

1 comment:

Unknown said...

Right on the money (no pun intended), but most people are too ignorant to know this. Not too stupid--just ignorant. Maybe you should go back to school for economics:)