I love (and by love I mean, hate, get frustrated at, etc) it when the government thinks they can tax only employers.
I’m sure you’re asking, “But Justin, the government does tax employers. They do it all the time. Doesn’t your employer pay half of your social security tax? Don’t they pay income tax?”
Of course they do. I mean, they send in a tax form and send money to the government. But it isn’t really the company paying it. Its you.
When a company hires you and determines your pay… what they offer you isn’t the only cost of having you as an employee. Part of the budget is that 7% social security tax. Its basically part of your salary, except, you never see it.
And income taxes? They are built right into the price of goods or services being offered. When you buy that double cheeseburger at McDonalds, the cost of their income tax is put into the cost of the food. They aren’t paying a dime. You are.
Its why income taxes aren’t really a fair tax to begin with. If you raise income taxes on corporations, they aren’t gonna feel it in their pocket. They will raise prices on their goods, or if taxes are too high, they will stop offering said services. They’ll take their money to the bank. Lay off everyone. And invest their money.
Taxes on corporations are ALWAYS passed on to the buyers. You can’t legislate reality.