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When you tax corporations, they don't simply make less profits, they embed the tax losses in their prices and pay less to workers. You, as a consumer or employe
by moralsupply 7y ago
When you tax corporations, they don't simply make less profits, they embed the tax losses in their prices and pay less to workers. You, as a consumer or employee, end up paying that tax.
- charlesu 7y agoI think you're oversimplifying how companies determine prices and wages. Yes, corporate taxes are one consideration. There's also competition, regulations, distribution costs, and commodity prices. Passing along your costs directly to consumers is a great way to give up market share to a more efficient or creative competitor.
- moralsupply 7y agoIf taxes are applied to all corporations, competition is not a factor to be considered.
- charlesu 7y agoThat's an interesting statement. Why not?
- moralsupply 7y agoIf all companies are taxed equally, it [obviously] means taxes incur on their balance sheets equally. Therefore, in order to meet their growth, profitability, etc. requirements, they'd all have to embed taxes in their prices. If one company becomes "smarter" and more competitive, it's not going to be because taxes created an incentive for them, it would be because they are just doing what they always do: to increase the means of production through entrepreneurship -- which turns out to be the "invisible hand" that exterminates poverty.