itfitzme
VIP Member
Our economy would boom if BO eliminated the corporate tax altogether as Ireland proved by just lowering it. Its the ultimate vindication of supply-side economics.
And think of the boon to the economy if America just eliminated all taxes, well not the people-taxes but all corporate and business taxes. That could become a new economic law. Lower taxes and get out of the way, the money will pour into the coffers.
...and what many do not understand is that lowering taxes on corporations lowers the price of the corporate goods and services. The money it takes to cover the corporate tax payment is included in the price of the corporate product.
CORPORATIONS DO NOT PAY TAXES! PEOPLE THAT BUY FROM CORPORATIONS PAY TAXES FOR THEM!!
Many do not understand that there is not a direct or absolute relationship.
Lowering corporate taxes does not guarantee lower prices. It is not a direct one to one relationship.
Lowering corporate taxes can simply result in increased profit with no other change.
Raising taxes can simply result in lower profit with no other change.
Prices are primarily a function of the consumers willingness to pay. Prices rise to consume all available income. When prices include cost plus profit and are at the level that consumes all consumer income, an increase in taxes will not raise the price of the product because consumers cannot pay a higher price and are already consuming as little as possible.
If there is no excess or unfilled demand, lowering corporate taxes will not result in lower prices.
Taxes and prices are not a direct one to one relationship. The effect of corporate taxes depends on other factors including demand.
TYPING IN CAPITAL LETTERS DOES NOT MAKE SOMETHING MORE TRUE. TYPING IN CAPITAL LETTERS JUST DEMONSTRATES THAT THE PERSON BLINDLY REJECTS ANY OTHER INFORMATION. EXTERNAL FEEDBACK IS REQUIRED TO UNDERSTAND REALITY. THE REFUSAL TO ACCEPT EXTERNAL FEEDBACK IS A PRIMARY CAUSE OF INSANITY.
LOWERING TAXES IS NOT GUARANTEED TO BE PASSED ON TO THE CONSUMER. IT ALSO DOES NOT INCREASE DEMAND.
IT DEPENDS!!!
CORPORATIONS PAY CORPORATE TAXES. INDIVIDUALS PAY INDIVIDUAL INCOME TAX. AND CONSUMERS PAY FOR PRODUCTS AT A PRICE THAT IS THE EQUILIBRIUM POINT OF SUPPLY AND DEMAND.
IF IT WERE OTHERWISE THEN THERE WOULDN'T BE WORDS LIKE "EQUILIBRIUM POINT", "SUPPLY", "DEMAND", "INCOME TAX", "WILLINGNESS TO PAY", "PROFIT", "PRICES", "SALES TAX" AND "CORPORATE TAX". THESE ARE WORDS BECAUSE THEY LABEL DIFFERENT REAL THINGS. IF THESE THINGS DIDN'T EXIST WE COULD JUST ELIMINATE THE WORDS ENTIRELY.