Principle #2

Principle #2 - BUSINESS ULTIMATELY PAYS NO TAX.



i.e. If the government goes after business, they will charge you more at the register or take more out of your paycheck. Business will pay taxes, but that money comes from you and me in the way of higher prices for goods and services.

It is also important to remember: the entrepreneur bares all the risk. When you tax that entrepreneur, she/he has less capital to spend on things like human resources and raw materials. The money for taxes will not be taken from their profit margin, those taxes get passed along to the public in the price of the products.

For example, if people and small businesses who make over $250,000 get taxed at a higher rate, they will either need to charge more for their products and services or lay off some of their workers in order to hold profit margins.

Bottom line: A lower corporate tax rate will promote job growth and keep prices low, resulting in a better standard of living for the American public.