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Corporate taxes are among the taxes with the highest dead weight loss, and the cost just gets passed on as lower worker compensation or higher prices of goods a
by pitaj 3y ago
Corporate taxes are among the taxes with the highest dead weight loss, and the cost just gets passed on as lower worker compensation or higher prices of goods and services.
The overhead associated with corporate taxes is also much higher for small businesses.
- ameister14 3y agoI know that's what a set of economists say theoretically happens, but I'm not sure that's actually borne out in the data. If you look at periods of wage stagnation and/or inflation, they aren't exactly positively correlated with relative high corporate taxes.
- tanaros 3y ago> the cost just gets passed on as lower worker compensation This applies to payroll taxes, but I don’t think it applies to corporate income taxes. Since corporate income taxes are typically levied against profit, not revenue, wages are paid out of “pre-tax” money. A high corporate income tax rate would actually incentivize paying higher wages and/or hiring more employees.