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> If anything, taxing corporations is regressive -- the taxes ultimately get passed on to consumers through higher product prices, regardless of their income le
by wwweston 13y ago
> If anything, taxing corporations is regressive -- the taxes ultimately get passed on to consumers through higher product prices, regardless of their income levels.
This has never seemed like a strong argument or an accurate description of what actually happens to me.
If it's true that businesses just pass along taxes, then:
1) I'd think businesses wouldn't be so concerned with minimizing/fighting taxes. What we seem to see instead is that businesses seem to be concerned they will be carrying the cost and investors seem to be worried it will cut into profits.
2) I assume that's true for me, too, of course -- presumably, I don't pay income/payroll taxes either, I just pass along the cost of those taxes to my employer. My employer, as given, just passes those costs along to consumers. Consumer just figures in the costs of goods/services and calculates their asking price for their market offerings accordingly...
So nobody pays taxes?
It seems more likely to me that rather than people "just" passing costs along whole is that everybody pays the tax by finding some economic balance between what they can/must pass on and what they can/must absorb. How much is passed along probably depends on how competitive the market for each exchange is along every cascade and how price sensitive buyers are.
> Taxing corporations doesn't produce magic money
I don't think anybody really thinks it does. The idea is to distribute the load, which taxes (passed along or not) do.
- jdietrich 13y agoOn point 1, tax avoidance is more strongly incentivised if the costs are passed on to customers. Higher prices are a huge competitive disadvantage. A single company avoiding their taxes can undercut their competition and dominate the market, forcing all of their competition to follow suit.
- wwweston 13y agoIn other words, businesses can't/don't "just" pass on costs to consumers.