Friday, May 2, 2008

Business taxes

This is ugly. New tax plans make for businesses to pay higher taxes, while the lower property taxes are supposed to offset that tax increase. But if I was a business owner, in facing this tax, I'd increase my prices just a bit to cover my bills. This would spread through all businesses, and eventually to customers. It would hopefully hit more people than just property owners, and so spread the tax burden, but it's hidden. I can't point to a tax bill and say "This much is from tax, and this much is from the cost of doing business.

What would happen if we implemented something like the FairTax on a statewide basis? Everyone pays, everyone gets a refund. Of course, people would fight over distribution, especially the formulas to figure out how much goes to school districts, counties, and cities. What do you think would happen if this actually did make it through the Legislature and People?


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