Ahead of John Healey's first Budget, a reminder that companies don’t pay tax - people do. And that also applies to energy suppliers and to banks. In more technical terms, companies are only legal entities and cannot bear the economic burden of tax themselves. Tax increases are therefore always passed on to real people. Shareholders will bear some of the cost through lower profits and dividends, although many 'ordinary' people own shares through their pension funds. But customers will also pay through higher prices, while employees will face lower wages. Everyone may lose if companies cut jobs and investment or move activity overseas. So, whenever someone says, “companies should pay their fair share” or “tax banks, not workers”, ask them where the money will really come from… 🤔