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All taxes are ultimately born by the consumer. All. Of. Them. It doesn't matter how much you try and obfuscate the tax by introducing it at different points in
by codexb 3y ago
All taxes are ultimately born by the consumer. All. Of. Them. It doesn't matter how much you try and obfuscate the tax by introducing it at different points in the supply chain. If you charge a tax anywhere in the supply chain, suppliers will just increase prices and pass that cost onto the consumer.
- Closi 3y agoNot really true - a corporate capital gains tax for instance is generally born by a companies shareholders rather than the companies consumers, so it's clear that some taxes can be directed more towards company shareholders than consumers. Similarly dividend taxes don't really put much upwards pressure on consumer prices. So the idea of corporation tax is to try and structure a tax which puts pressure on corporate profits on very profitable businesses, rather than putting direct pressure on prices. I mean it depends who you call a 'consumer' as ultimately someone has to pay, but the idea is to direct that to the richer capital-owners rather than the poorer, and VAT generally hits the poorer.
- onlyrealcuzzo 3y agoYou can definitely distort behavior with taxes.