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American Taxation

June 2024
1min read

Toward the end of his excellent article “American Taxation” in the May/June issue, John Steele Gordon places insufficient emphasis on the fact that the corporate income tax is a consumption tax. The financial performance of any corporation is measured by its stockholders on the basis of after-tax income. The consumer pays the added cost of corporate income tax along with cost of manufacture, sales, overhead, and of course after-tax profit. The concept promoted by politicians and social engineers that the corporate income tax is borne solely by the wealthy stockholders is completely false.

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