"Who pays the
corporate tax? A corporation is only a legal means by which to do business.
Taxes may be levied upon it, but only people pay taxes. Thus there always has
been much debate about who pays the corporate tax. Is it passed on to customers
in higher prices? Is it passed on to workers in the form of lower wages? Or is
it passed on to the stockholders in the form of lower dividends and capital
gains? (...)
As most good economists
and knowledgeable others understand, the world would experience a better
allocation of resources and more job creation if the corporate income tax was
abolished. Fights over which jurisdiction gets to tax and how much it can tax
would disappear. The so-called revenue loss would be made up by taxes on the
dividend and capital gains increases, and by the extra economic growth and
employment that would result from ending the corporate tax."
