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Who really pays?

| Wednesday, March 19, 2014, 9:00 p.m.

In his letter “Budget & business taxes” , Ronald Nicely stated: “Business taxes are paid in part by purchasers of the product made and by the employees and stockholders of the company.”

I believe that no business pays any business tax.

Except where competition prevents it, the business simply collects the business taxes from its clients or customers through added costs. These taxes are then sent by the business to the state government, which spends it on WAMs (Harrisburg lawmakers' “walking around money”), subsidies to favored taxpayers or, in the case of the federal government, on stimulus projects like Solyndra or, again, gives it to cronies to ensure elections.

If business taxes were eliminated and the business reduced its prices accordingly, and competition would force this reduction, the taxpayers/clients/customers would have this money to spend far more wisely than any government and the economy would be better off.

Lloyd Kline

Mt. Lebanon

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