“You can’t tax business. Business doesn’t pay taxes. It collects taxes. And if they can’t be passed on to the customer in the price of the product as a cost of operation, business goes out of business” — Ronald Reagan
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In this quote, Ronald Reagan is expressing his view that businesses do not truly bear the cost of taxes – they instead pass those costs on to consumers through higher prices. He argues that if a business is unable to increase the prices of its products or services enough to offset taxexpenses, then it will become unprofitable and “go out of business.”
Essentially, Reagan is saying that corporate taxes are not really paid by companies themselves, but rather are collected from customers through price hikes. By framing it this way, Reagan aims to make the case that tax cuts for businesses do not necessarily hurt government revenue, since lower taxes could enable companies to keep prices lower while still maintaining profits.