Corporations Don't Pay Taxes, People Do

Economists generally agree that individuals (people) pay business taxes, not corporations like oil companies, in one of 3 ways:

1. The first to pay are the employees of oil companies here in the U.S. -- people who would make lower wages or perhaps even lose their jobs if taxes on oil companies are increased.

2. Next would be the millions of Americans who have investments in the oil industry -- people who would earn lower returns on those investments if taxes were increased.

3. And finally, the principal group to pay would be American gasoline customers -- the millions of people who would pay more at the pump if oil companies pay higher taxes.

From the Tax Foundation's Tax Policy blog.

MP: Higher corporate taxes = higher prices for consumers, lower wages for employees and/or lower dividends for shareholders. People pay all business taxes in their roles as consumers, workers or shareholders.