Gaaaah! Richard Murphy again on a US proposal to reduce the corporate income tax:
Yet again, the corporate world seeks to lower its tax bill by shifting it onto ordinary people with a smaller capacity to pay.
It\’s not even controversial, it\’s a well known fact, that corporations do not in fact bear the burden of the corporate income tax. The actual burden is carried by some combination of the workers, in lower wages, the customers in higher prices and investors in lower returns.
The Congressional budget office saya that, in the US, more than 50% is bourne by the workers. Another more recent international paper says that in the long term, a $ 1 raised in corporate income tax reduces the workers\’ wages by more than $ 1.
Lowering the corporate income tax therefore benefits the incomes of the workers.
Does Murphy simply not know this basic point?