'The Idea That You're Going To Tax Corporate America Is Mythology' Dave Ramsey Says, The Consumer Always Pays

Dave Ramsey has made his stance clear on corporate taxes and how they affect regular Americans. In a recent clip "The Ramsey Show" posted on YouTube Shorts, Ramsey explains that the idea of taxing corporate America is "mythology."

"The company that I own is a corporation," he explained. "Now, if you raise the taxes on that company, on your basis, then do you not think the cost of a ‘Total Money Makeover' book or the cost of a ‘Financial Peace' kit for you to attend the class is gonna go up?"

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Ramsey used his own business as an example to show that when companies face higher taxes, it's the consumer who ends up paying. Economists have argued this idea for years: when corporate taxes go up, the cost is usually passed on to consumers through higher prices, employees through lower wages, and shareholders through decreased returns.

But not everyone agrees with this view.

Corporate taxes have been a point of debate for a long time. In 2017, the Trump administration lowered the corporate tax rate from 35% to 21% with the Tax Cuts and Jobs Act. Supporters of the cuts believed this would spark growth and lead to better wages for workers. However, a survey from the National Association for Business Economics found that only 4% of businesses actually increased hiring as a result of the tax change.

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During his campaign for a second term, President Donald Trump even proposed further cutting corporate taxes to 15%. Whether this will happen remains to be seen, but the debate continues.

Despite arguments for tax cuts boosting the economy, many Americans believe corporations need to pay more. A Gallup poll found that 70% of Americans feel big companies don't pay enough taxes. Public opinion on this issue differs by political affiliation, with 94% of Democrats, 78% of Independents, and 63% of Republicans supporting higher corporate tax rates.

Supporters of raising corporate taxes argue that businesses should contribute more to support public services and infrastructure. Bernie Sanders (I-VT) has been vocal about this, saying, "At a time of massive wealth and income inequality and soaring corporate profits, it is an outrage that many large, profitable corporations continue to pay little to nothing in federal income taxes."

Chuck Marr and his team at the Center on Budget and Policy Priorities argue that the 2017 tax cuts mainly benefited wealthy individuals, and they believe raising the corporate tax rate to 28% could generate $1.3 trillion over the next decade, providing funding for critical public needs.

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On the other hand, opponents of higher corporate taxes say it could slow down economic growth, lead to higher prices for consumers, and push businesses to move abroad. Rep. Carol Miller (R-WV) wrote in Fortune in September that raising corporate taxes would "slow economic growth, reduce jobs, and weaken U.S. competitiveness."

Economists like E.J. Antoni from the Heritage Foundation argue that corporations don't truly bear the tax burden—consumers, workers, and shareholders do. He said taxes are simply another cost of doing business, and those costs end up being passed on to people in different ways.

The corporate tax debate is ongoing, with strong opinions on both sides. While Ramsey and others argue that consumers ultimately pay the price, those in favor of raising taxes believe it's necessary for fairness and to support essential public services. As the conversation continues, the effects on businesses, workers, and everyday people will remain a major point of discussion.

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