Fantastic post from Kurt Schuler at the George Selgin’s Free Banking blog.
Free Banking – Taxation of banks: Banks present a tempting target for taxation because that’s where the money is. As with other forms of corporate taxation, though, who pays the tax to the government and who ultimately pays it can be two different things. This point is both so elementary and so important that if you hear somebody claim that the solution to raising more government revenue is to tax corporations rather than people, you can dismiss him as an ignoramus. Failing to understand it shows an inability to do what the economist Thomas Sowell calls “thinking beyond Step 1.” Step 1 is the levying of the tax. The further steps, which involve thinking about what happens next, are what Sowell considers to be the essence of the economic way of thinking.
Corporations DO NOT and CAN NOT pay taxes, only people do.
Who really pays corporate taxes?
Tax Deal Roundup, And Open Letter To Bernie Sanders …