Bill O’Reilly, Individuals Pay Corporate Income Tax Too
July 16, 2009
Wednesday night, Bill O’Reilly attacked Goldman Sachs for apparently standing to gain from the proposed cap-and-trade program. He claims that Goldman Sachs paid zero in federal corporate income tax in 2008, which is not technically true but close according to this Bloomberg article. Hey, it’s O’Reilly…it’s a nice talking point.
In his usual populist tone, O’Reilly then goes on to complain that while Goldman paid nothing, Democrats to raise taxes on individuals like himself. What O’Reilly fails to understand though is that people like him pay the corporate income tax too, it’s just not as transparent.
No company can bear the “burden” of a tax. It may remit the tax (legally paying it), but individuals’ incomes are reduced to pay the tax.
In fact, the corporate income tax would hit more “regular folk” than the the proposed surtax on high-income individuals (under whatever assumption you make about incidence of taxes on both corporate and non-corporate business investment).