Individuals Shouldering 50% Of Tax Burden, Corporations Only 6%

CNN’s OutFront with Erin Burnett shared some stunning statistics yesterday showing that thanks to Trump’s/GOP’s tax cuts, individuals are now shouldering a staggering 50% of the tax burden as compared to corporations’ only 6%–a totally revolting, even immoral statistic

Erin Burnett posed the question to Kevin Hassett, Chairman of the Council of Economic Advisers at Trump’s White House, “Individuals are paying all the taxes to subsidize the corporate tax cuts?”

Kevin Hassett’s explanation was that as a result of Trump/GOP tax cuts, there has been a capital spending boom which has resulted in higher wages and therefore higher individual tax contributions. Specifically Hassett said in response to Erin Burnett’s question, “If there’s a big surge in wages, people pay tax on those wages and therefore the share of personal income goes up. So if you have a wage boom then you’re also going to have higher taxes on the personal income side and it’s not like a shocking terrible thing like you[Erin] portray it.”

Yours Truly is not an expert economist and will not play one today by analyzing the merits and demerits of Kevin Hassett’s explanation. Reasonable people will agree however that there’s something inherently wrong when individuals in a country that’s home to some of the world’s richest corporations shoulder 50% of the tax burden while the rich corporations shoulder only 6%.

Bottom line it is the height of inequity, even immorality for individuals in the world’s leading economy to shoulder 50% of the tax burden while corporations–some of the richest in the world–only carry 6%. This speaks of a growing trend among modern Republicans where corporate interests are placed ahead of the people’s welfare. Democrats must highlight this sickening GOP trend as we head towards the 2020 elections and upon winning, work towards a more moral/equitable economy that looks out for working Americans instead of exploiting them as Trump’s economy apparently is.

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You may reach the author via email at author@grassrootsdempolitics.com or author@emolumentsclause.com

25 Replies to “Individuals Shouldering 50% Of Tax Burden, Corporations Only 6%”

  1. When FDR brought in the New Deal I believe corporations paid 35% in taxes…everyone prospered because corporations paid a fair share of taxes…but since the Rep took over and started to drop the amount that corporations the burden has been falling to individuals to pay more to cover the loss…when will we demand that corporations start paying what they use to….

  2. When FDR brought in the New Deal I believe corporations paid 35% in taxes…everyone prospered because corporations paid a fair share of taxes…but since the Rep took over and started to drop the amount that corporations the burden has been falling to individuals to pay more to cover the loss…when will we demand that corporations start paying what they use to….

    1. You DO know that tax payers shoulder 100% of the tax burden, right? Any taxes paid by corporations are passed on to customers in the form of higher prices for goods and services.
      You guys really need to take economics classes.

      1. not necessarily, corporations will pay out less bonuses and have less stock buybacks if their profits are lower because of taxes. in essence causing the wealthy corporate class to pay their fair share

        1. dividends are paid to shareholders which are taxed

          buybacks mean the stock is worth more so when people sell it………… (wait for it)…… they pay taxes on it
          the more profit the more tax
          the more tax the higher bracket

          successful ceos get raises
          unsuccessful ceos get fired

      2. If this was true, the 1950s and 60s economy should have gone into the toilet. But the opposite happened. Corporations hired more people, provided training programs, increased wages, and produced the largest growth of a Middle Class population. They also became philanthropic. Why? They wanted to lower their tax burden was the one reason. While doing this, they find that the bottom line grew too. Why? When working class people have more money they aspire to live better lives. They use that money to buy themselves some upward mobility. Encourage their children to get a better education.

        The 1950s and 60s saw a growth in people buying homes, cars, furniture, etc. They also bought better food and clothing. It was a growing Middle Class. I remember this quite well, since this is the time I grew up. My father made good money at Lock Insulator and was promoted to a floor supervisor during his employment there. He made good money and it showed in our life style.

        Kevin Hassett’s claim that as a result of Trump/GOP tax cuts, there has been a capital spending boom which has resulted in higher wages and therefore higher individual tax contributions. Is nothing more than a smoke bomb.

        The reality is that CEOs have given themselves a big wage boost and have done lots of stock buy backs [which explains the stock market numbers – BTW – not that big a boost considering where it started at with Trump]. It like you got up to bat and hit with a run to second base and the coach replaces you with a faster runner and they steal to third and claim credit for the hit.

        The wage boost is also a smoke and mirrors gain. It is only cost of living boost, not promotional because the companies are doing better. FYI, for all of this greatness being touted, the US is still having businesses closing down, laying people off, shutting down offices, factories and stores, consolidating rather than explanding. If our economy was growing like we are being told businesses would be expanding not scaling down and consolidating.

      3. Yes any taxes paid by corporations are passed on to consumers in the form or higher prices for goods and services. But don’t you think that if they are paying less in taxes, then they should also drop their prices to make up for that. Instead they raise the prices and so you end up paying even more to them. Are we winning yet?

  3. Why are they not at least shouldering the other 50%. That would make more sense to many people. To many it would mean simply a balance of 50/50. Although I am sure when we add in other factors like the interest from various loans, debts and so forth the government itself gets money from there is a huge portion of profit from the U.S. Government business itself. So would it not be fair for the population to pay 1/3 – Corporations 1/3 and the government itself another 1/3? Just a thought if we are truly seeking equality in taxation. Because we know we sure are not getting equality when it comes to nationality, religion or any other aspect of American life. Everybody wants special treatment. I personally believe we should drop all special treatment of people and no more special interest groups and treat and tax everyone the same. Corporations wanted to have the same Rights as individuals.. Well then they should pay the same taxes as individuals would have to and at the same rate based on their incomes. That at least would be a step in the right direction towards real equality.

  4. Why are they not at least shouldering the other 50%. That would make more sense to many people. To many it would mean simply a balance of 50/50. Although I am sure when we add in other factors like the interest from various loans, debts and so forth the government itself gets money from there is a huge portion of profit from the U.S. Government business itself. So would it not be fair for the population to pay 1/3 – Corporations 1/3 and the government itself another 1/3? Just a thought if we are truly seeking equality in taxation. Because we know we sure are not getting equality when it comes to nationality, religion or any other aspect of American life. Everybody wants special treatment. I personally believe we should drop all special treatment of people and no more special interest groups and treat and tax everyone the same. Corporations wanted to have the same Rights as individuals.. Well then they should pay the same taxes as individuals would have to and at the same rate based on their incomes. That at least would be a step in the right direction towards real equality.

  5. Why are they not at least shouldering the other 50%. That would make more sense to many people. To many it would mean simply a balance of 50/50. Although I am sure when we add in other factors like the interest from various loans, debts and so forth the government itself gets money from there is a huge portion of profit from the U.S. Government business itself. So would it not be fair for the population to pay 1/3 – Corporations 1/3 and the government itself another 1/3? Just a thought if we are truly seeking equality in taxation. Because we know we sure are not getting equality when it comes to nationality, religion or any other aspect of American life. Everybody wants special treatment. I personally believe we should drop all special treatment of people and no more special interest groups and treat and tax everyone the same. Corporations wanted to have the same Rights as individuals.. Well then they should pay the same taxes as individuals would have to and at the same rate based on their incomes. That at least would be a step in the right direction towards real equality.

  6. The money a corp makes get reinvested or paid to employees. Taxing a corporation more means less money getting paid to employees and less reinvesting (for more business & jobs). Tax the 2% more instead!

  7. Those statistics do indicate that there has been a huge, or any for that matter, wage increase. Without a complete breakdown of individuals tax revenue comparisons for multiple years no such conclusion can be made.
    What can be said is that low of a tax burden on corporations is obscene.

    1. You can’t really tax a corporation. They just raise there prices. Individuals pay ALL taxes. The rest are hidden taxes so you won’t know how much you are really paying.

  8. It is obvious from this article, and most of the comments, that there are very few economists in the house! Corporations, or any other enterprise, create wealth through productive activity (Making a good or service people want and will pay for). That wealth is shared between employees(wages), owners(shares & dividends) and the government(taxes). Regardless of what the government taxes all the money originated from wealth creation, so quoting percentages, particularly when they don’t add to 100%, is meaningless.

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