A firm does not pay taxes

Quite often one makes a comparison between taxes paid by firms and taxes paid by households. However, a firm is a set of contracts and a contract does not think, act, or pay taxes. Only individuals pay taxes. Therefore whenever it is assumed that a tax or a social contribution is paid by a firm, it is in reality paid by those who have signed the contracts which constitute this firm, in particular wage earners and owners of the firm. But one does not know precisely how the tax burden is distributed between them, which means that there is a lack of transparency in tax systems. As an example, a corporate profit tax may not be paid in reality only by the owners of firms who earn profits. Contrary to common thought, the taxation of firms does not have an effect on their “international competitiveness†, but on the distribution of resources between individuals.