When your hear of Corporate Taxation...

bee

...think of this quote:

In the case of the corporate income tax, as the Harvard Business School’s Mihir Desai put it in an interview I recently did with him and his HBS colleague Bill George, “that tax is going to be borne by shareholders, workers, or customers.”

Interesting look at who pays corporate taxes:
who-pays-corporate-taxes-possibly-you

Crash

"Corporations don't pay taxes." Well, ya. But that's not automatic. That goes without saying? No. Someone is making a decision to pass that cost along to the consumer. you're going to sell me something? You're going to make money off MY money? And you think it's a good idea to turn around and charge me---at the same time--- with YOUR tax burden? SCREW you.

Yes, that's the way it's done. But it shouldn't be.

bee

@Crash, seems to me that taxes are just one more cost of doing business.

racqueteer

Companies/industries ARE their workers and customers. Taxes HAVE to come, ultimately, from income minus wages and materials. OF COURSE it's coming from YOUR pocket! How hard is it to see that companies/businesses are not going to simply ABSORB the extra costs?

LewisBraham

The premise is vague nonsense. It all depends really on the kind of industry and company we're talking about. Only in monopolistic industries where the dominant companies have pricing power would consumers and workers bear the brunt of a tax increase. In highly competitive industries--the way capitalism is supposed to function by the way in classical economics--there would be very little chance for an individual company to pass that increased tax cost on to consumers or to hire less workers than necessary to fulfill its orders. Otherwise, competitors will destroy that company. The problem with including "shareholders" in the mix is they are a very different stakeholder from workers and consumers. So yes, in a monoplistic industry consumers and workers would bear the brunt--mainly consumers. But in every other industry, shareholders would bear the brunt, and they should. Shareholders have made out like bandits since the 1980s, their wealth far exceeding average Americans. It's time they pay more in taxes.

Anna

Well, if true that taxes fall to the worker, it would appear that when taxes go up anywhere, wages should go up to pay those taxes.

Crash

+1.

Gary1952

Crash said:

"Corporations don't pay taxes." Well, ya. But that's not automatic. That goes without saying? No. Someone is making a decision to pass that cost along to the consumer. you're going to sell me something? You're going to make money off MY money? And you think it's a good idea to turn around and charge me---at the same time--- with YOUR tax burden? SCREW you.

Yes, that's the way it's done. But it shouldn't be.

So government should set prices and thereby set profits? Controlling taxes then adding price controls sounds like perfect socialism.

Old_Joe

To some people ANYTHING other than unfettered, unregulated cutthroat last-man-standing capitalism is always "socialism".

Yap, yap yap! I've never really cared for high-pitched yapping little dogs.

LewisBraham

@Gary1952 Did you enjoy the multi-trillion dollar government stock market bailout via socialism this year that saved your portfolio?

Crash

+1.