Businesses don't pay taxes, people pay taxes

On March 31, the StarTribune published an editorial opposing the DFL-proposed cap on charter schools. While it did not fully prioritize the education of children over the protection of the government/union education status quo, it was at least a refreshing assertion that "Minnesota has been a pioneer in offering public school choice, acknowledging that today's students have a variety of learning styles and needs...The door should remain open to create innovative schools for Minnesota students."

Yesterday, the reliably liberal daily opined that "Business taxes are up, and that's not good." This flies in the face of the liberal proclivity of raising taxes on "big, bad businesses," forcing them to raise prices or leave the state, prompting those same liberals to bemoan high prices and unemployment, which prompts them to raise taxes, which — well, you get the idea.

Businesses don't pay taxes, people pay taxes. From the editorial:

Raise property taxes on a commercial enterprise, and Minnesota consumers will pay nearly half of that increase in higher prices. Raise property taxes on an industrial plant, and more than half of that cost will be passed on to workers, through lower wages and benefits. In both cases, the study projects, only a small fraction of the cost is borne by business owners.

Business taxes may be the most regressive of government's revenue-raisers -- which makes it ironic that they are so often favored by liberal politicians who otherwise argue for taxation based on ability to pay. This year, the DFL-controlled state Senate has already passed a bill that would add $222 million to the statewide business property tax by 2009.

The Senate should defeat this tax increase, or Governor Pawlenty should veto it.

And bravo to the the Strib for surprising us with positions advocating school choice and oppsoing tax increases.

Join Jason Lewis and thousands of members of the Tax Cut Coalition on the steps of the State Capitol this Saturday, April 14 at 12:00 noon.