So, he\’s trying to deny that corporations do not bear the burden of corporation tax.
In summary: corporations can and do bear tax and they also change who pays tax, where tax is paid, when it is paid and at what rate.
Err, what? If the corporation bears the tax then it cannot change who bears it, can they? Only if it is not the corporation bearing the tax can the operations of the corporation change who does bear the burden.
And in his reasoning he tells us that:
However, we accept that this point has also been challenged, with some economists arguing that the owners of capital (the shareholders) do not in fact pay the corporation tax charged to a company and that the customers, or more often, the employees do. We do not agree, again, and are not alone in our opinion.
A US Congressional Budget Office report concluded in May 2010, that capital(shareholders) bears the majority and maybe all of the corporate tax burden. It was also not alone: another Congressional Budget Office report in March 2011 hedged its bets: it suggested when offering advice on measures that could help close the US fiscal deficit that increasing corporation tax would in the short term (by which it implied several years) increase the tax burden on companies themselves.
Thereafter it recognised that there could be a theoretical shift of the burden onto labour, but by then no one could be sure because other factors would have intervened and a great many further short term changes would have taken place.Any other answer but this comes, in our opinion, solely from the realm of theory and has no practical application. This has not stopped some seriously misleading claims being made with regard to tax incidence. In particular almost all the claims that the incidence of corporation tax falls on labour appear seriously and even fundamentally flawed.
Note what is being argued there: that the corporation tax falls somewhat to mostly upon returns to capital, somewhat to not very much on returns to labour.
That is, the incidence of the tax simply isn\’t on the corporation, we\’re arguing about whether the incidence is upon capital or labour.
So, Ritchie is using as proof that corporations do pay corporation tax the argument that actually it\’s capital that pays it not corporations.
Is there no beginning to this man\’s logical ability?