Corporations and taxes

Discussion in 'Economy' started by SpidermanTuba, Jun 6, 2010.

  1. SpidermanTuba
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    SpidermanTuba BANNED

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    If corporations always pass their taxes off on the consumer, then why do corporations spend so much effort lobbying to keep their taxes low? What difference does it make to them, they aren't paying it, they make you and I pay for it, so what do they care?
     
  2. Mini 14
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    Less taxes = more profit.
     
  3. SpidermanTuba
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    SpidermanTuba BANNED

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    But the consumer pays the tax. So how does less tax = more profit? Just = lower price for consumer.
     
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    taxes are paid AFTER the sale has been made. We're not talking about sales taxes here, we're talking about income taxes. The less tax a corporation has to pay on their income, the more they have to pay shareholders or reinvest in the company. They *could* pass those costs on to consumers, in the future, but they (and the shareholder) are better served to keep the taxes as low as possible.

    Sales tax isn't "passed on" to the consumer. It is a tax the consumer pays and the company holds for the various taxing authorities. When I collect $1 from a customer, I have to pay 8 cents in tax, then I get taxed at the end of the year on my profit. THAT is the taxes corporations are fighting, not the sales tax.
     
  5. SpidermanTuba
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    Corporations don't mind sales taxes? Really?
     
  6. Oddball
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    Oddball BANNED Supporting Member

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    It's easy to tell you're a career employee.

    Would you want to hire tax accountants and keep tax attorneys on retainer if you didn't have to?
     
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  7. Mini 14
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    Corporations don't mind sales taxes at all. They don't like them, because its an accounting nightmare, but they don't keep them, and they don't count as income. They are nothing but a headache to any business (corporate or small biz).

    I own a small business. Sales tax doesn't affect me at all, other than I have to collect it for the various agencies. I don't get to keep it, I'm just responsible for collecting it, then paying it to the various authorities.

    I don't pay taxes on the items I buy to resell. Payroll taxes are much the same thing, but they are an even bigger pain than sales taxes.

    Income tax is an entirely different animal. That is the one we all fight, and try to lower, because that is the one that comes out of MY pocket, and not the consumer's.
     
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  8. Rat in the Hat
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    They don't. Really.

    Corporations are just tax collecting bodies as far as sales taxes. The local taxing authorities tell them how much to collect in sales taxes, (lets say 8.75%) and the corporation charges it and sends it to the appropriate government entity.

    The corporation does not care how much the local sales tax is. It is charged on top of the price of their product. It wouldn't be their fault if the rate was 8.75% or 200.65%. If the local authorities charge an onerous rate, the corp. would point that out to their consumers.
     
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  9. NYcarbineer
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    NYcarbineer Diamond Member

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    Because it's just a superficially attractive line that corporate shills use to try to fool people.

    The other question is, if you don't want corporations to pay taxes, who DO you want to tax to raise that revenue?
     
  10. Oddball
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    They do, really.

    It means that they have to hire on people to keep track of and pay the taxes that they otherwise wouldn't have to (i.e. looyahs and accountants).
     

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