When are the politicians and the media going to tell the truth about the corporate and business tax any tax on business is a tax on us?

Just like any cost that a business incurs taxes are pass on to the consumer so if you tax a business you are taxing us and to top that of if you taxes a corporation and then give them a hundred lope hole to avoid paying the tax we pay the tax to the corporation yes they still charge us for the tax and then the government lets them keep it. Tax on business is just another way for the government to take our hard earned money and not have to admit that they took it from us.

altonschwabs avatar Politics
2 7

When are people going to admit that taxes are good for everyone. The higher the taxes the better the society.

Hey VicZinc I know we have to agree to disagree on this one, but I will always believe that I know how to spend my money better than someone in government. It’s easy to spend money you didn't earn and they always want more.

@altonschwab Hey VicZinc I know we have to agree to disagree on this one, but I will always believe that I know how to spend my...

To your point,
I agree that taxes get “passed” onto the marketplace. (It’s not at all clear that profits do, but that is another post.)

Taxes get passed on through the mechanism that sets prices. That mechanism is supply and demand.

A producer will always charge the highest price possible that does not stifle demand. If the ‘cost of goods sold’ ever goes higher than the market price, then the producer will simply stop producing. If the opposite is true, i.e. the market price allows a profit, you can be sure the prices will not go down, instead the profits will go to the producer as her reward. That is fair. This is how the market works.

Raising taxes on the producer does not increase prices. The only thing that can increase prices is demand becoming greater than supply*. On the other hand, raising taxes might make the cost of goods so high that the producer decides not to offer the product. In the latter case the consumer loses only the opportunity to enjoy that product (1).

In the case of ‘necessary goods and services’ such as electricity, water, communications, &c. the government can [should] step in and provide a regulated level of profit to ensure ubiquitous distribution of these essential services. (Our society has deemed, police, schools, fire protection &c. to be so necessary that they are state-run services [meanwhile most civilized societies include medical services here also, but that is another post.])

So as I do agree taxes become part of the cost of goods, I respectfully disagree that those costs are passed onto the consumer. The producer can try to pass those on, but we will only ever pay true market value.

(1) An argument that higher taxes actually means more money is available in the demand side of the equation is very consistent with the belief that lower taxes increase the supply side. As demand goes up prices increase (inflation) as do overall profits.

*Which is one reason a Bugatti cost 10 times as much as a Corvette.

Large corporations spend a lot of time and effort to avoid paying taxes. It seems reasonable to believe that lowering their tax rates and closing loopholes would free corporations of this inefficient burden.

Cut corporate tax rates and make up for the loss in revenue by increasing taxes on capital gains.

There is no need to tell people it's obvious.

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