AKCoverMan
Well-Known Member
Yes I get it, taxing business is stupid because the customer just ends up paying the tax. Nevertheless these taxes exist.Fedex and UPS did not pay those taxes. They got that money from the consumer, and passed it along to the government. Fedex profited, UPS profited, the government profited, but the consumer just got indirectly taxed. If the government raises taxes on a corporation, that corporation just increases its costs to the consumer. If, for example, I charged 50 cents for an ice cream cone and the government raised my corporate taxes by 10%, that same ice cream price would increase to 55 cents. (Or I would shelter my revenue in another country.)
But my point in this case is that private carriers do have to pay taxes to Government while the government carrier does not. It’s still an advantage given to the government carrier.