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If the incidence of the tax doesn't fall on consumers it doesn't necessarily fall entirely on shareholders. You would expect the incidence to be shared between
by benmmurphy 12y ago
If the incidence of the tax doesn't fall on consumers it doesn't necessarily fall entirely on shareholders. You would expect the incidence to be shared between workers and shareholders.
- crdoconnor 12y agoIncorrect. It's just shareholders. The market value of labor is unaffected by the level of profit tax.
- xaqfox 12y ago<quote>The market value of labor is unaffected by the level of profit tax.</quote> Only if you can guarantee that changing levels of profit tax would not cause any wide scale lay-off or hiring sprees that would certainly effect labor market saturation and thereby the market value of labor.
- crdoconnor 12y agoI guarantee that Starbucks and Google will not be pulling out of the UK if they do raise these rates to the proposed levels (or even higher). It would be cutting off their nose to spite their face.