The Rich NEVER pay taxes

I become frustrated with the Republicans who aren't teaching the economic theory necessary to get the votes they need to take majorities and take the executive branch. Rule ONE:

"THE RICH DO NOT PAY TAXES."

There are no exceptions.

Above a certain point of wealth, particularly if the wealthy own the means of production, which you must assume they do, they do not pay taxes.

Really you say?

Really. They pass the buck, to you.

Capital is leverage, leverage gets you what you want. At some point I am not qualified to graph, the wealth of an individual becomes so large that whatever burden of taxation they have, they simply add it to the cost of whatever it is they provide to society and pass it along.

Let's take the oil companies for example. They are greatly vilified. Suppose the the oil companies make record profits hitherto unheard of. Obscene profits. Immoral profits. Opportunistic, price gouging profits. Tax them you say.

The demand of the stockholders are unchanged. They want a certain return AFTER TAXES, PERIOD. If not given that return they run to some other investment that WILL give them that return. The oil companies in turn adjust their supplies, their profit margin and their investment levels so as to produce that after tax return to the point that it will attract stockholders. Thus, you cannot tax them.

What will happen is that you can price their product out of the reach of poorer individuals, who may in fact need it. Thus the overall market contracts in size, the profit MARGIN needed per individual unit of what is sold must go up, until some new equilibrium is reached that gains the return that is necessary.

The great VIRTUE of consumerism is the widespread distribution of a good or service distributes its cost of development or acquisition or production. If it cost a billion dollars to develop a product and a billion people buy it, that's a dollar for every person that buys it. It's actually more than a dollar per item, but lets just leave it at that for the moment.

If you price a thing upward do the point that only half a billion buy it, the effect is obvious. Development now costs TWICE as much, the amount of profit also, that is distributed among the individual sales goes up by the same amount. The effect of increasing the cost, the INPUTS to a good or service simply spirals a good or service up in price to the point where less of us can have it. This IMPOVERISHES US ALL. This CANNOT BE CHANGED. It is an IMMUTABLE LAW of all economic transactions, whether the economy be government controlled, free market, or at some point in between the two extremes. If an activity becomes SO unprofitable that it cannot be engaged in, by excessive taxation, it will CEASE. Whatever that activity provided, will no longer be available.

Populist politicians that say they're going to SOAK the RICH are PLAYING you. They are soaking YOU, not the RICH. It is impossible to soak the rich. You can only REDUCE the number of them available to tax. That is an oligarchy where power in concentrated in the hands of the VERY FEW, and they never run a country to the benefit of the masses. NEVER.

What corporate taxation and business taxation amount to is a Value Added Tax. VATs are ways to HIDE from you the amount of tax you pay. You go to the store, pay 3% sales tax and feel like you WON because you know the RICH got SOAKED instead of you.

You FOOL.

You paid EVERY dime of TAX the RICH PAID in the form of increased cost, and then the government took 3% of a much more expensive item. Corporate taxes should be viewed as a form of DOUBLE TAXATION and a form of TAXATION WITHOUT REPRESENTATION. These are fundamental causes of the Revolutionary War.

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