5 ms·
Same reason raising taxes on companies doesn’t work. It either gets passed onto the consumer or company goes under if business drops too much.
by treeman79 3y ago
Same reason raising taxes on companies doesn’t work. It either gets passed onto the consumer or company goes under if business drops too much.
- bandyaboot 3y agoDoesn’t the blanket statement that “raising taxes on companies doesn’t work” naturally imply that the only tax rate that “works” is zero?
- PebblesRox 3y agoI think the implication is that it doesn't work as a way to avoid raising taxes on regular people.
- rocqua 3y agoIt taxes regular people differently than taxing them directly. VAT rates on food tend to be regressive. Taxing company profits has little effect on prices.
- stu2b50 3y agoOnly if the product has completely inelastic demand? Also, that'd depend on the goal of the tax in question?
- fuckingbonkers 3y agoIt works in the sense that some people feel better about paying higher taxes if they pay them by paying higher prices to corporations that then pay the tax. And other people feel better about raising taxes on people if they do so by raising taxes on corporations that then raise prices on people.
- dsr_ 3y agoRaising taxes on income doesn't work. Workers will just demand higher wages to compensate. If this logic doesn't work, then there are some unstated assumptions.
- hgsgm 3y agoThat's the opposite of true in a monopoly environment.
- phone8675309 3y agoThere are some taxes that are actually designed to work that way - the most common instance being "sin" taxes on tobacco, alcohol, and cannabis as a way to reduce demand on those items by making them much more expensive.