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Products sell for what the customer will pay, no less, no more. Studies show that taxes tend to come out of the owner's share - they're paid by the owners of t
by jellicle 10y ago
Products sell for what the customer will pay, no less, no more. Studies show that taxes tend to come out of the owner's share - they're paid by the owners of the business.
If people are paying $1 for hamburgers today, and the owner gets a tax cut, will hamburgers be sold for less? Doubtful.
- Tinyyy 10y agoIf all hamburger producers get a tax cut, then some of them will be able to reduce their prices, so hamburgers will be sold for less.
- sjy 10y agoCan you cite some of those studies? The effective incidence of corporate income tax is controversial. With internationally mobile capital and immobile labour, a source-based corporate income tax theoretically has no impact on shareholders and results in lower wages for domestic workers, an observation supported by some empirical studies [1]. [1] Mirrlees et al, Tax by Design (2011), p 438, citing Hassett and Mathur (2006) and Arulampalam, Devereux, and Maffini (2007). You can get a PDF at http://www.ifs.org.uk/publications/5353 http://www.ifs.org.uk/publications/5353.