Via Slashdot I read an article from Forbes Magazine about how some of the top corporations in the US ultimately pay no taxes.

Some of the world’s biggest, most profitable corporations enjoy a far lower tax rate than you do–that is, if they pay taxes at all.

The most egregious example is General Electric. Last year the conglomerate generated $10.3 billion in pretax income, but ended up owing nothing to Uncle Sam. In fact, it recorded a tax benefit of $1.1 billion.

Insert outrage here, right?

I’m not sure. On the surface yes, that sucks. Thing is, we’ve developed a structure that ultimately rewards people who want to get rich and are willing to do so… almost at any cost. That’s both a good thing and a bad thing. But as I go through life I’ve come to realize that the less I accept being someone else’s drone and instead work to manage my own affairs and utilize “the system” to my advantage, yes, there are benefits.

Who doesn’t want to reduce the amount of money the government takes out of their paychecks? We all strive to fork over as little as possible, right? If there are ways that color within the lines to do so, why shouldn’t we take advantage of that? The tax code is set up in such a way that these big corporations can shelter income from taxes, so why shouldn’t they do that? Yes they perhaps lobbied to gain such advantage but again, that’s just them working to fork over as little as possible. It’s what we all ultimately want, right?

So why get ugly with these people? Do we have our sights and goals set so low that we should punish the rich big guys? What happens when the day comes that you’re one of those rich big guys? Or do you never esteem or see yourself there? Call me an optimist, but I’m going to continue to work towards that end. I may never get there, but it sure seems like time better spent (being productive and working to achieve bigger things, than just bitching about those that have achieved bigger things).

Because ultimately folks… if you screw the big guys, you end up screwing yourself.

Would no more tax holiday for GE really end up helping Mr. and Mrs. Taxpayer? Doubtful. “The average Joe should be in favor of lower corporate taxes,” says Hodge, “because ultimately they are paying the corporate income tax. Either as workers, getting lower wages and fewer jobs, or as consumers, paying higher prices, or as retirees, getting lower dividends and earnings on their investments.”

In the same vein, JPMorgan Chase Chief Executive Jamie Dimon has spoken out against an Obama proposal to levy a special tax on banks to recoup bailout costs. “Using tax policy to punish people is a bad idea,” said Dimon. “All businesses tend to pass costs on to customers.”

In the end you’re always going to be the one that pays. They may hide the cost, they may redirect, there may be many layers of indirection between you and the ultimate tax. But it’s always going to be you and me that ultimately pays. So if you really want to work to keep more of your paycheck, well… stop letting taxes pay for everything. Don’t think “corporate taxes” or “taxing the wealthy” is somehow putting the burden on someone else and not you, because it’s false — it will come back to bite you. And if you’re that sort that feels we should spread the wealth around, put your money where your mouth is and PayPal your paycheck to me now. 🙂