TNI May 19, 2003.vp

C have sometimes said that economists cannot agree about anything. An important issue, on which many economists do agree, however, is that, although it is obviously convenient to collect revenues through taxing businesses, there is little justification for taxing them. In the end, all taxes affect people in economic terms. There is little to gain, and potentially much to lose, by confusing the issue and pretending to tax companies, and not people. Of course, it is not always clear exactly which people — owners, workers, or consumers — end up paying business taxes, but somebody definitely will pay. Hiding who really pays the bills is not a good way to ensure accountable public sector decisions.