Companies do not pay taxes

[akelch]

I here a lot of talk about how companies and the rich should pay more in taxes. What many fail to understand is that all taxes are paid by the consumer. Any time taxes are raised on corporations they raise their prices or lay people off to compensate.
The same is true with income taxes. You raise the rich's income tax....they don't take this laying down. They make changes to their companies and portfolio which cost money to the companies thus they make changes to save money or they raise their prices.

So please stop debating about the income tax rates, capital gains tax, and payroll taxes, and start debating on how to get rid of them and put something else in its place that makes sense. Like a consumption tax.

Stepping off soap box......

 

[EdwardBaiamonte]

I here a lot of talk about how companies and the rich should pay more in taxes. What many fail to understand is that all taxes are paid by the consumer. Any time taxes are raised on corporations they raise their prices or lay people off to compensate.
The same is true with income taxes. You raise the rich's income tax....they don't take this laying down. They make changes to their companies and portfolio which cost money to the companies thus they make changes to save money or they raise their prices.

So please stop debating about the income tax rates, capital gains tax, and payroll taxes, and start debating on how to get rid of them and put something else in its place that makes sense. Like a consumption tax.

Stepping off soap box......

well, a consumption tax reduces consumption and is regressive so its no good either. The ultimate solution is, as our Founders said, the smallest government possible.

 

[Mr. H.]

There are many businesses that do not have the means to pass along costs of any kind to the consumer.

 

[EdwardBaiamonte]

There are many businesses that do not have the means to pass along costs of any kind to the consumer.

and?????????????

 

[akelch]

There are many businesses that do not have the means to pass along costs of any kind to the consumer.

Like Sylondra?

 

[oldfart]

I here a lot of talk about how companies and the rich should pay more in taxes. What many fail to understand is that all taxes are paid by the consumer. Any time taxes are raised on corporations they raise their prices or lay people off to compensate.
The same is true with income taxes. You raise the rich's income tax....they don't take this laying down. They make changes to their companies and portfolio which cost money to the companies thus they make changes to save money or they raise their prices.

So please stop debating about the income tax rates, capital gains tax, and payroll taxes, and start debating on how to get rid of them and put something else in its place that makes sense. Like a consumption tax.

Stepping off soap box......

Your position would be correct in a perfectly competitive market. Firms would pass on all costs to consumers through higher prices in the long run. But markets are not perfectly competitive. You ignore over a hundred years of economic literature on monopoly, monopsony, and oligopoly, as well as assymetrical power and information. Increases in taxes will definitely cause a firm to alter its operations in most cases, but how much of the increase is passed on depends on a lot of variables.

 

[EdwardBaiamonte]

how much of the increase is passed on depends on a lot of variables.

not really, a pin costs a lot less than a Rolls Royce because it costs a lot less to make. 99.9% of relative prices reflect the relative cost of making the goods, indicating that virtually all costs are passed on and that we can expect that in the future.

 

[oldfart]

how much of the increase is passed on depends on a lot of variables.

not really, a pin costs a lot less than a Rolls Royce because it costs a lot less to make. 99.9% of relative prices reflect the relative cost of making the goods, indicating that virtually all costs are passed on and that we can expect that in the future.

Ed, this is what happens when you get your economic theory from a Cracker Jack box. Go to any basic economic text and look up "monopoly pricing". A monopolist generally has the same demand curve as the industry, downward sloping, and therefore a marginal revenue curve lying below the demand curve. The traditional marginal cost curve is U-shaped. The intersection of the marginal revenue and marginal cost curves determines output. That quatintity on the demand curve represents the market price. Explain to me, if you are capable, how a tax increase shifts the cost curves so that price must go up.

 

[Toro]

I here a lot of talk about how companies and the rich should pay more in taxes. What many fail to understand is that all taxes are paid by the consumer. Any time taxes are raised on corporations they raise their prices or lay people off to compensate.
The same is true with income taxes. You raise the rich's income tax....they don't take this laying down. They make changes to their companies and portfolio which cost money to the companies thus they make changes to save money or they raise their prices.

So please stop debating about the income tax rates, capital gains tax, and payroll taxes, and start debating on how to get rid of them and put something else in its place that makes sense. Like a consumption tax.

Stepping off soap box......

Company taxes are solely paid by consumers only when the product is perfectly price inelastic. Anything less than perfect price inelasticity and the tax is paid by a combination of consumers and shareholders, with shareholders paying more of the burden and consumers less the more elastic the price.

 

[Politico]

Of course companiess pay taxes.

 

[EdwardBaiamonte]

Of course companiess pay taxes.

of course companies pay for raw materials and reflect them in the prices of their goods and services. Companies are tax collectors not tax payers.

we have corporate taxes only to pander to the pure economic ignorance of liberals

 

[EdwardBaiamonte]

Explain to me, if you are capable, how a tax increase shifts the cost curves so that price must go up.

same way a raw material increase does!!

 

[Gadawg73]

how much of the increase is passed on depends on a lot of variables.

not really, a pin costs a lot less than a Rolls Royce because it costs a lot less to make. 99.9% of relative prices reflect the relative cost of making the goods, indicating that virtually all costs are passed on and that we can expect that in the future.

Ed, this is what happens when you get your economic theory from a Cracker Jack box. Go to any basic economic text and look up "monopoly pricing". A monopolist generally has the same demand curve as the industry, downward sloping, and therefore a marginal revenue curve lying below the demand curve. The traditional marginal cost curve is U-shaped. The intersection of the marginal revenue and marginal cost curves determines output. That quatintity on the demand curve represents the market price. Explain to me, if you are capable, how a tax increase shifts the cost curves so that price must go up.

When my businesses have a tax increase I have to increase my prices.
Been that way for 34 years now for my businesses.
Cracker Box Economics 101

 

[Gadawg73]

Of course companiess pay taxes.

Of course mine and none do not.
Ever.
All we do is COLLECT taxes and pass them on.
Taxes are built into our cost of doing business.
How else do we make a profit?
Why do you think the economy is so bad now.?
We do NOT KNOW what the tax policy will be from Bozobama The Clown.
Uncertainty in the tax rate, the cost of materials and utilities, labor and everything affects the economy in a negative way.
Why do we want to risk our capital with the uncertainty of the tax rates?
This is not rocket science. We have been saying this forever and the Democrats are too ignorant to understand basic small business.

 

[Politico]

Of course companiess pay taxes.

of course companies pay for raw materials and reflect them in the prices of their goods and services. Companies are tax collectors not tax payers.

we have corporate taxes only to pander to the pure economic ignorance of liberals

Companies don't collect taxes. They pay taxes on their revenue. Ahh wait. That's what it's really about. Companies are evil because they make profit. Can't have that. I have an idea. Why don't you start one and show us all the non evil way to do it.

 

[Gadawg73]

I own 3 companies.
The revenues come from PEOPLE.
I collect the revenues from PEOPLE.
PEOPLE own corporations.
PEOPLE pay the taxes when they buy goods and services as it is figured into the cost BEFORE the sale.
Called PRICING YOUR PRODUCT OR SERVICE.

 

[akelch]

how much of the increase is passed on depends on a lot of variables.

not really, a pin costs a lot less than a Rolls Royce because it costs a lot less to make. 99.9% of relative prices reflect the relative cost of making the goods, indicating that virtually all costs are passed on and that we can expect that in the future.

Ed, this is what happens when you get your economic theory from a Cracker Jack box. Go to any basic economic text and look up "monopoly pricing". A monopolist generally has the same demand curve as the industry, downward sloping, and therefore a marginal revenue curve lying below the demand curve. The traditional marginal cost curve is U-shaped. The intersection of the marginal revenue and marginal cost curves determines output. That quatintity on the demand curve represents the market price. Explain to me, if you are capable, how a tax increase shifts the cost curves so that price must go up.

Tax the share holders at 95%...then see what happens.

 

[akelch]

We spend hundreds of billions of dollars every year just to COMPLY with our current tax code. Companies will spend billions to lobbyist to evade taxes.

If taxes don't matter to corporations then why do they go so far out their way to avoid them?

 

[Rshermr]

not really, a pin costs a lot less than a Rolls Royce because it costs a lot less to make. 99.9% of relative prices reflect the relative cost of making the goods, indicating that virtually all costs are passed on and that we can expect that in the future.

Ed, this is what happens when you get your economic theory from a Cracker Jack box. Go to any basic economic text and look up "monopoly pricing". A monopolist generally has the same demand curve as the industry, downward sloping, and therefore a marginal revenue curve lying below the demand curve. The traditional marginal cost curve is U-shaped. The intersection of the marginal revenue and marginal cost curves determines output. That quatintity on the demand curve represents the market price. Explain to me, if you are capable, how a tax increase shifts the cost curves so that price must go up.

Tax the share holders at 95%...then see what happens.

Really. really stupid post; Did you think someone wanted to tax the shareholders at 95%, or did you just need to fill some empty space??

 

[Rshermr]

We spend hundreds of billions of dollars every year just to COMPLY with our current tax code. Companies will spend billions to lobbyist to evade taxes.

If taxes don't matter to corporations then why do they go so far out their way to avoid them?

hundreds of billions, eh. And I am sure you have some proof of that number. Did someone say taxes did not matter to corporations?? Pretty damned stupid post. Did you have any proof of anything you say, or is it just opinion??