Obama’s Tax Plan Explained So Everyone Can Understand It

If you have ever wondered exactly what happens when taxes are increased on the businesses in our country this video will explain it.  Business pay NO taxes.  Let me say that again so you can grasp it.  Business pay NO taxes.  Now you are probably saying “of course they do, they file tax returns don’t they”.  Yes, they do but businesses only collect taxes and remit them.  Taxes are simply a cost of doing business.  When they go up a business has a couple choices, 1) it can absorb the increased cost and survive on less profit, 2) it can cut costs somewhere else to offset the increase in the taxes, or 3) it has to increase the price it charges on the goods or services it produces.  

Most business are not able to absorb the increased cost so they have to pass the cost along to others.  They do this by cutting costs in another area or by increasing their prices (or both).  If they choose to cut costs, their are two areas where this will fall – employees or suppliers.  The business will negotiate a cheaper price from its suppliers, thus passing the increased taxes on to the suppliers (where they cycle continues and is compounded), or the business will cut labor costs (meaning layoffs or salary cuts), thus passing the increased taxes on to their employees.  

ALL TAXES ARE ULTIMATELY PAID BY INDIVIDUALS.  This is basic economics.  When Obama says that he is going to increase taxes on businesses and wealthy people he either does not understand basic economics or he is hoping  that we don’t.  Either way, he is not someone we need as President.  Watch the short video, it explains this well.



9 Responses to Obama’s Tax Plan Explained So Everyone Can Understand It

  1. l3rucewayne says:

    Great video! I think I’ll swipe it and put it up on my blog soon.


  2. krystal says:

    Um, yes, business owners DO pay taxes…high property taxes AND they pay income tax on a higher scale because of the business’ income.
    Stop spouting your **** [EDITED BY TOM] and trying to spread the hysteria.


  3. Tom Shelton says:


    Watch your language or keep your comments to yourself. I will not tolerate inappropriate language on this blog.

    Now, to your comment. You obviously don’t understand basic economics. Business owners do “pay” taxes in many forms but taxes are simply a cost of doing business. They build that cost into the prices they charge or the number of employees they hire. In so do, they pass these taxes (income, payroll, property, etc.) on to other businesses or individuals. So it is true that business pay taxes in that they collect and remit them to the various taxing authorities. But, in REALITY, ALL taxes are paid by individuals.

    This is not hysteria, this is how our system works. Open your eyes and you will see. Then you can consider what Obama’s tax plan will do to our economy.


  4. Tacitus says:

    In the case of subchapter C corporations the organization itself pays a corporate income tax and the owners who receive dividends get to pax taxes on the organization’s post-tax income. I guess in that case the individuals who own the corporation get to pay tax twice 😉

    But yes, I agree entirely with your premise here – Obama wants to make it appear as though some faceless super-rich entities that are out there doing no good for our society are going to be the ones who pay for all of these great social programs, but anyone who believes that misses the point – all taxes are ultimately felt by all citizens regardless of socioeconomic status. Even the 40% of Americans who don’t pay taxes feel it in terms of higher prices on consumer goods.


  5. Greg Toombs says:

    And of course it all makes perfect sense with Bill Gates and Warren Buffet saying Obamanomics is the greatest thing since slcied bread.

    How do they square that circle?


  6. Tacitus says:


    I’ve wondered this too. I’ve chalked this up to “being successful in businessman isn’t the same as being a successful economist.”

    Also, I’d imagine when you’re as wealthy as those two are you have to worry about being painted as another Cornelius Vanderbilt or Andrew Carnegie – might be tough for guys who are that wealthy to withstand the attacks against them for being so successful. It’s pretty perverted that successful people are cowed into being ashamed of themselves… for being successful.


  7. Tom Shelton says:


    Yes, C corps do have to file a tax return and pay taxes. And owners of C corps are subject to double taxation. Those are facts. But it is also a fact that those corporations pass along the taxes they pay to their customers (via increased costs) or their employees (via less employees or lower wages) as a cost of doing business.


  8. Tom Shelton says:


    I agree. I can’t understand why successful people should be punished for being successful. Seems contrary to the American Dream.


  9. God Runs Into Some Trouble With Saddam Hussein:

    Saddam Hussein was hung and immediately taken to the judgment throne of The Angry Monotheist God.
    Saddam looked around and said, “What sort of courtroom is this?”
    “This is the judgment throne!” shouted an angry booming voice.
    “Interesting,” replied Saddam. “Where is my court-appointed attorney to aid me through these proceedings?”
    “You are not entitled to an attorney before my court!”
    “Ah, I see,” nodded Saddam. “You’ll have to forgive me for the error. I had become used to the Western model. In any case, wherever I am, clearly I cannot judge your justice system, because when I was in power, I also denied the accused any kind of legal representation. Frankly, I always thought that ‘entitled to an attorney’ business they did in the United States was silly. A real dictator allows no such buffoonery. Whatever our differences might be, at this point, I see that we clearly agree on that matter.”
    “Saddam! Silence! You are being judged!”
    “Yes, yes. I’m quite aware of that and quite used to it by now. But tell me, in this nation, what do you do with dissenters?”
    “Dissenters?” thundered The Angry Monotheist God.
    “Dissenters. You know, citizens who doubt your right to rule, citizens who disagree with your decrees and laws, citizens who refuse to obey certain orders, types like that. What do you do with them?”
    “Do with them? Why, they are tossed into Hell!”
    “Hell. Of course. I’ve heard people use that term all my life, but I was never sure what the place would be like.”
    “Hell is a place where the disobedient are tortured with heat!”
    “My goodness, sounds a lot like Baghdad in the Summer. Sir, have you by chance visited Iraq?”
    “You fool! I created Iraq!”
    “Good one! Exactly the line I always used. I think I called myself ‘The Father of Iraq’ much of the time. We really are two men seemingly cut from the same cloth. Now what exactly is done with the dissenters? I mean, we know it’s hot in there, but exactly what level of torment do you prefer to subject dissenters to?”
    “Infinite torment! The non-believers are subject to infinite levels of pain!”
    “Excellent!” replied Saddam. “Of course you are right in this matter. I see that now. While in Iraq I was accused by my sons of being too soft. I would torture people to a certain extent and then eventually kill them. But I can’t honestly say I ever achieved the standard of inflicting infinite pain. I’m pretty sure that many times I actually let people off the hook, completely.”
    “There is no mercy for the non-believers!”
    “That term, ‘non-believers.’ That was not what I called those who opposed me. Could you be more specific about the term ‘non-believer?'”
    “Anyone who refuses to accept my plan for Salvation!”
    “Hmm, I see you are very thorough. Even my sons, who were far more brutal and merciless than me, sometimes let some people off. It all depended on their mood, their whim, you know. I supposed I failed in that way too, jailing some people for a while and then tossing them out of jail and letting them go for no apparent reason. Hmm, you’ve given me pause for reconsidering my style. I had been meaning to ask more about this torture camp or compound you call Hell. Now, before executing the prisoner, how long do you torture him?”
    “Those condemned to Hell are never permitted to die! They must suffer the burning of their entire souls for all eternity!”
    “Sir, not to be disrespectful, but you know that Westerners often called me a sadist, and perhaps I was, but after perhaps a few months of torturing a man till he was insane, I would finally give the command to hang him. After a man is already driven completely mad by torture, what is the purpose of keeping him in that state for years? You used the term ‘eternity,’ but of course that’s not possible. So, honestly, sir, how many years would you torture a person who did not submit himself properly to your rule?”
    “For ten billion years! and for ten billion years after that! and ten billion years after that! for all of time!”
    Saddam began to chuckle. “Okay, I’ve flinched. You’ve got me on that one. I now must repent of my easy-going ways. I see the reason I was overthrown, because, in the end, there was a limit to what I would do to maintain power. For instance, I should have developed nuclear weapons and simply blown the allies to Kingdom Come, excuse the pun.”
    “We are not friends, Saddam! You are being judged!”
    “Of course. Of course. I know it will take time. But you see, after thinking it over, I approve of your methods and must only apologize for having been too blind to adopt them earlier. Tell me, if a village or town defies you, would you do as I did? Would you let them starve? Would you hit them with chemical weapons?”
    “I would destroy them, evaporate them, turn them all to pillars of salt!”
    “Wow! We never thought of that one, the pillars of salt thing.”
    “Saddam, you are mocking me! You shall pay!”
    “No, no, sir. Please don’t misinterpret me. I am prepared to join you. Anyone who is a master of torture is indeed my friend. But what of the innocent who get smug? Those who follow your orders and decide to take you for granted and assume they are safe? Me and my sons, from time to time, would select perfectly innocent people and torture them, just so the word would get out that no one was safe? Do you have similar methods?”
    “All men must die! All men have sinned!”
    “Capital! So, in other words, we should declare ahead of time that all persons under our control are guilty automatically, and thus none of them escape the possibility of torture of execution, and hence we are justified in any brutality we commit. You got me again! No wonder I lost my grip on power. You know, I was so weak that I actually proclaimed many people to be good people. I suppose that’s why they deserted me when the allies invaded, because they felt there was a limit to my powers after all, because I would give in and praise them. How incompetent can a dictator be? I must really do some soul searching, (again, forgive the accidental pun).”
    There was an erie silence from the throne of The Angry Monotheist God. Saddam got a bit nervous by the silence. And then, reflecting on the similarity between them, Saddam’s face suddenly lit up.
    “Sir! Are you a Baathist? If so, I think we can form a great alliance to defeat the Westerners! I see no reason why we can’t take Iraq back from those weaklings who rule it now. Clearly, if I adopt your strategies, I can implement a new level of authoritarianism that can ensure my family stays in power forever!”
    “I am a God of Love!” protested the occupant of the throne.
    Saddam wrinkled his brow in confusion and consternation for several moments, and then at last breathed a sigh of relief and laughed out loud, “Ha ha ha! So you do have a sense of humor, after all! This is most wondrous. There are so many jokes I would like to share with you. After all, I do have a weakness for Western humor. I think you shall find we can share a lot of laughs together.”

    Mel C. Thompson, Concord, 9-8-2009.


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