Corporations Don’t Pay Taxes – People Do! Government Doesn’t Pay For Health Care – Taxpayers Do!

As a follow-up to The Real Cost of Health Care Reform – Who pays For It?, I felt compelled to further defend the case.  A friend of mine called me to contest my position concerning the business model that says that no one pays for tax increases or increased health care cost except you and me the consumer, employee, or stockholder.

ObamaCare- Not Priceless

Not so, says my attorney friend.  My friend says his business is different.  His business doesn’t fit the model.  He believes that in his business there are no stockholders and he can’t defer it to his employees or customers.  He believes that his business pays for it.  He views himself as “The Business”.  In fact, he is correct.  He is the owner and in his case the owner pays for it.  Somebody has to.

He also believes strongly that the large medical malpractice settlements awarded to his clients are paid for by primarily the  insurance industry.  Also not true!     Once again, it is the individual taxpayer that foots the bill in every case.  It is built into the cost of health care in the form of medical malpractice insurance, unnecessary tests and procedures, increased hospitalizations. and other forms of defensive medical practices.  Medical malpractice insurance is paid for, not just by the doctor, but by all the people the doctor treats.  It is built into the cost of maintaining the doctors business.

As President  Obama said many times about John McCain … “he just doesn’t get it”.  I pretty sure I know who really doesn’t get it!

Who Pays For It?  Consider the following:

Whether the business is a sole proprietorship, partnership or large corporation the basic business model still applies.  In any business there are four types of people.  They are either owners, employees, customers, or suppliers All are individual taxpayers! Even those that don’t appear to pay taxes, in fact, do in the price of everything they purchase.

Every car, every gallon of gas, every Big Mac, every french fry, every cup of coffee, and oh yes, every beer you or I purchase has the the cost of health care and taxes built into it.  Even if you don’t work and don’t pay income tax, you pay taxes in everything you purchase.

No matter what the business is, it is the individual taxpayer, consumer, or employee, that pay the bill of increased cost.  There is no one else to pay.

If you are a sole proprietor, such as “Joe the Plumber”  you are the owner.  If you are part owner in a partnership, you are one of the owners.  If you are a stockholder of a large corporation you are an owner.  In the case of a large corporation the stockholders are made up of all types of people (grandmas, grandpas, mail carriers, pilots, engineers, retirees, CEO’s, etc.).  All are also an individual taxpayers!

COST + MARGIN = PRICE

If increased taxes or increased health care cost are forced on a business by the government ” Who Pays for it???”

Question #1

If the business is to maintain it’s current margin and does not cut other cost , then the price must go up.  Who pays?

  1. The Owner/ Owners
  2. The Customers
  3. The Employees
  4. The Suppliers

All costs, including taxes and health care insurance, are built into the price of the products, we the consumer, pay.

Question #2

If the business is to maintain it’s current price and margin then, some other business cost must go down.  Who Pays?

  1. The Owner/ Owners
  2. The Customer
  3. The Employees
  4. The Suppliers

Costs must be cut in the form of labor (wages, benefits, jobs).  As the cost of heath care benefits increase, the offerings go down or the employee contribution goes up!  Even if the costs are cut in areas such as materials, utilities, rent, etc., it is eventually paid by the employees or employees of the material or utility supplier or their subsequent suppliers.

Question#3

If the business is to hold the price and they cannot cut other cost, then the margin goes down.  Who pays for it?

  1. The Owner/ Owners
  2. The Customer
  3. The Employees
  4. The Suppliers

Sorry, there ain’t no Mr. Maytag.  All owners are individual taxpayers whether you are talking about a small business or a large corporation.  Even large investment corporations that purchase large portions of a large corporations stock are they themselves owned by groups of individual owners.

Even people who don’t work and don’t pay income taxes are tax payers.  It is built into the price of every  (legal) product or service sold.

The Cold, Hard Facts About Who Pays!

Corporations don’t pay taxes!  People do! Even corporate income taxes that support our government are built into the price the products they provide.  Corporations don’t pay them, it the consumer that pays them!

Government Doesn’t pay for anything!  Taxpayers do!

One hundred  percent of every tax the government imposes … the individual taxpayer pays …You and Me!

One hundred percent of everything the government does or provides … is paid for by the individual taxpayer … You and Me!

Anyone who doesn’t believe that really “Just Doesn’t get it!!!

The real question is not “Who pays for it?”  There is no question about!  The real question remains … How much are You willing to pay for? … Papa B!

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