Does it matter if GE pays income taxes?
Welcome to Tony Island Blog! A few weeks ago, a furor erupted in the liberal media over GE's non-payment of income taxes. There were various reasons for this, but the main issue pounded on by the media was the non-payment of taxes. Now, does it really matter if GE or any other corporation pays income taxes? Back in the '80s, Ronald Reagan said it best - corporations don't pay taxes, people do. And there's the rub. As we scramble about looking for tax money to cut the deficit (and, of course, increase spending...err, I mean investing!), the easiest targets are the large corporations. But the problem is that corporations don't pay taxes - people do. Oh sure, corporations fill out tax forms and fork over a good chunk of change to the government (on all levels) but do they really pay taxes? Of course not - those costs are later borne by the employees (in the form of lower wages and benefits), the customers (via higher prices or stable prices with less output - think...
