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>It has to come from somewhere. It can come from owners, workers, or consumers. Owners. It comes from owners. >If it comes from owners, it increases the corpo
by crdoconnor 9y ago
>It has to come from somewhere. It can come from owners, workers, or consumers.
Owners. It comes from owners.
>If it comes from owners, it increases the corporation's cost of capital
There is currently an almost absurd overabundance of capital relative to aggregate demand.
- sanxiyn 9y agoIt is collected from owners. Tax collection and tax incidence are separate issues. In economics parlance, where tax "comes from" or "falls on" refers to tax incidence, not tax collection.
- crdoconnor 9y agoTax collection and tax incidence are indeed separate issues. The tax incidence falls on owners - probably at least until profit taxes reach ~80% or capital became magically very scarce for some reason that clearly doesn't apply to the present day.