Rest assured, higher taxes will be passed on, not absorbed by the rich
We all will pay the increased taxes in the American Taxpayer Relief Act of 2012 which raised taxes on the wealthiest Americans. The bill made permanent the Bush tax cut rates for middle and lower income taxpayers. It also extended various tax credits to politically favored projects and industries. However, we in the lower and middle income brackets should not believe the nonsense that we have avoided paying a tax.
It pays to listen to one’s wife. I made a comment that when we were renters we didn’t pay taxes; that it was the landlord who paid the property taxes. She quickly reminded me that when the landlord’s taxes rise, our rents rise to cover their cost. It is true. If Belpre were to impose a $120 per year tax on rental units, you can bet our rents would go up at least $10 per month.
It is the same with taxes. Business owners, corporations, and the “rich” may write the checks which pay the taxes.
In the end, however, we, all of us, pay more for the private sector goods and services those check writers provide. Taxes extract resources from the private sector. This means that we private citizens will have to reduce our discretionary “extra” spending. Moreover, we will also pay a higher price for our necessary goods and services.
Therefore, those of us who feel that the rich are now paying their fair share must also be prepared to be taxed indirectly.
The truth is that increased taxes ultimately are paid by everyone, not just the rich.
Richard G. Briggs