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Government tax breaks for big businesses

why the government gives tax breaks to big businesses? Does this practice help or hurt the common individual?


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 Our Constitution is a document in which "We the People" tell the government what it is allowed to do.
Ronald Reagan in his farewell speech 1989 

No company ever pays any taxes; they are calculated into the price of the product or service as part of the cost and the cost is added to the profit, resulting in the price that you and I pay when we purchase.

 

Taxes are necessary to run the government, but when they are used, as they are in today’s world, to influence the behavior and decisions of the public, they can end up being detrimental to both the government and the individual…An example of this would be if the government taxes all earnings over a certain level at a higher rate, the individual will tend to try to not earn the higher level and therefore will not have the income needed to invest in businesses through the stock market…If a company listed on the stock market cannot sell stock, it cannot expand its capacity even if it could sell more product…Since the company cannot expand, additional jobs are not created for more people to have an income with which to purchase goods and services…Since the company cannot sell its goods and services, it lays off workers so that it can meet expenses…The laid off workers do not have an income so they cannot buy, etc, etc, and so it goes down the tubes…And since everybody is making less money, the government gets less money in taxes, so they have to raise taxes on everybody!

 

Short answer; higher taxes on businesses and individuals who make more money are bad for everyone including the government.

Posted 2009-06-21T20:59:22Z

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