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                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, January 7, 1992                   TAG: 9201080007
SECTION: EDITORIAL                    PAGE: A-6   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Short

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CORPORATIONS DON'T REALLY PAY TAXES

THE POLL on the economy (news story, Dec. 28) showed that many people have not learned that there is only one source of revenue for goverment, and that is the individual.

For years, we have heard from many that corporations do not carry their fair share of the tax burden. The poll bears out that people believe this, since 69 percent favored an increase in corporate income tax.

I doubt those people stopped to consider that business really does not pay tax. That's not bad, it's just a fact of life. Tax is a business expense, just like the paper, ink and labor used to publish this newspaper. As such, taxes are factored into the cost of the product: in this case, the cost of the newspaper.

Extending this to manufactured products shows some interesting effects. For products sold nationally, the consumer pays the imbedded corporation taxes. The cost of products sold internationally includes the taxes that increase their price and make them unattractive to the potential buyers, drive them to foreign products, and put Americans out of work.

One way or another, you, the individual, will provide the total revenue needed by the government. WALTER R. TALBOTT FAIRFIELD

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