21 February 2021

The Employee Consumer Pays All Taxes

Probably due to the absolute lack of financial literacy education in U.S. public schools, there's a persistent mistaken belief that taxing "the other guy" more means that they are the ones paying the higher tax bill, not the people voting for the tax (which is often why they go ahead and vote that way). 

So your average person hears "raise taxes on corporations!" or property owners, or "the rich", etc., and they think, "yeah! Make THEM pay!"

They don't though. You do. 

The cost gets passed on to you in the asking price of goods and services that you buy, and in reduced wages (or wages that grow at a slower rate).  

The employee, uninvested consumer pays all taxes, period. 

That's what makes memes like this one I found this morning funny: everything in it is just basic fact, but it's that so many people are ignorant to this reality that makes it funny:

(I'm not sure if the pic got cut off at the bottom or if the creator did that on purpose; I was hoping that the final punchline would be that the added cost of rent and the wage cut/reduction of hours would total to $3000, lol.)

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