Believe me, businesses pay their (and your) fair shares

Craig Hall

Of all the Ronald Reagan quotes I enjoy, this one might be my favorite: “Republicans believe every day is the Fourth of July, but the Democrats believe every day is April 15.”
I bet Ronnie is turning over in his grave knowing all too many Republicans believe this as well today. Just look at their actions versus their rhetoric. 

Speaking of rhetoric, our president came out once again with the dead horse talking points which annually surround the Democrats’ favorite holiday, stating how the “rich” and “big businesses” aren’t paying their “fair share” — all while hiding his and his wife’s income under S Corps to avoid paying Social Security and Medicare taxes. Hell, Ol’ Sheriff Joe has been using this loophole to hide his income even to the point of avoiding Obamacare taxes for years. 

I’ve been part of the income tax sausage fest since I was 14 years old. Back then and for many of my early years, taxes weren’t a big thing to me. That’s because I was led to believe I was always getting an annual “refund.” As my years went on, I realized everyone in government loves changing the meaning of words — and refund is one of their favorites. Refunds are simply overconfiscation. It means the government took too much of your money, spent it unwisely or wasted a good portion of it and then took its good old time getting it back to you. 

As we grow older and earn more income, we find the government takes our money and makes us jump through hoops and navigate the nearly 80,000-page tax code to petition our grievances to get OUR money back. Better yet, if you find someone really good to help in getting even more dollars back or pay a lesser amount, you just might be rewarded with a colonoscopy known as an audit.  

And the cherry on top is the president and members of Congress calling you a criminal because you followed their tax laws. Quite the scam, no? 

 Another of my early tax recollections involved one of the two brothers I worked for spending Saturday afternoons handwriting our paychecks and filling in every line for federal and state taxes. I watched him literally go line by line in IRS publications to find the amounts he needed to subtract from our checks in what seemed to be a painstaking, severe kick in the backside. By the way, no one kills trees better than the federal government. I wonder if that was all so they could come up with climate change law after law which, ironically, will also soon be a tax.

The memory of watching Chuck do all that work to write out my measly paycheck for $50 — hey, I was making $1.75 an hour to fold polyester pants and Levis and make sure the leisure suits were in color and size order — back in the day is always front and center during tax time. And that’s because 20 some years ago, I became the guy writing the checks. 

At least the good news when I became boss was the progress in computers so filling in the lines of “deductions” on paychecks became automated — well at least a year at a time. Because next year the tax laws and rates would change, and all the uber rich businesses would have to shell out another few hundred bucks for the latest version of software to avoid their personal cavity search. Today, I pay a service to do my payroll. Want to know the why? It’s so taxes are paid timely, and I don’t make any mistakes. The only cavities I want filled are by my dentist. 

Which brings me to the point of this column. Wanna know who the largest employees of the IRS really are? Businesses. How’s that you ask? Do you honestly think the IRS has minions like Matthew the Disciple (well, it has disciples, trust me) collecting taxes in neighborhoods? No, the IRS has conscripted businesses to do its dirty work. 

YOU don’t pay taxes. Businesses pay taxes for you. Businesses collect and pay income taxes, Medicare and Medicaid taxes, Social Security taxes, state and local income tax, all sales taxes and pretty much any tax YOU owe the government. And businesses have to keep accurate records and pay your taxes timely or else. Businesses also absorb the costs of the collection, payment and conformity to tax laws — even to the point if a business ships products to other states in keeping up with every state and local tax. Yes, a business from California shipping me a pair of golf shoes needs to know Mesa County and Grand Junction tax rates so local politicians can brag about the health of local government due to tax receipts. 

If you really want to take part in your “fair share” of paying taxes, how about making every person pay each tax on every transaction separately every time they buy something or get a paycheck? You’d see tax reform in seconds and worthless politicians out of jobs even quicker. 

If you believe today’s tax laws are fair, you should run for office. Because “fair” in taxes is the last thing politicians want. And scapegoating businesses and business owners is just fine by them. 

Craig Hall is owner and publisher of the Business Times. Reach him at 424-5133 or publisher@thebusinesstimes.com.