Never Knew the Taxes the Corporation Paid

[Skull Pilot]

All, I am saying, and justly so said on your part... i may have confused your statements on these other posts, with the comments of others on this topic, is that although small businesses do take risks with opening a business, there are ways for you to protect everything you took out of this business of profit on your individual basis....

YOU WILL NOT lose your home or everything you made off of this business if you go belly up, not if you set your self up correctly to protect yourself with an S-corp as example...so when you say you risk everything of your own, I still don't see it that way....if you could expound on it further, I may understand better, what you are trying to say.

I have set up a corp, you know that. But what you don't seem to grasp is that the first 5 years of any business are perilous.

And do not presume to know what I or anyone would or would not lose if one's business failed. My home was bought with my business specifically in mind. We run our business from the majority of our home and my wife and I live in an apartment on the second floor. The business pays us rent that pays our mortgage. We owe vendors and have leases that our personal finances are shielded from but what about all of our personal money that we sunk into the business.?. All that investment did was increase our basis in the business. If the business fails, we will get none of it back.

On the unemployment thing, as I have said before to you, if you pay yourself a salary, you too qualify for unemployment as your employees would, so i see no risk there either...unless of course you decided to avoid SS taxes and U/E fees for yourself by taking your cut of the business only as profits, avoiding these other taxes...

.

You assume that my salary IS the entirety of my income. You would be wrong.

If so, then the savings of only collecting profits and not collecting part of this money as salary and avoiding SS taxes.... should have allowed YOU to take this savings in tax money and put it away for the bad times you may have had to face down the road, like shutting the doors of your business.

You may be right 10 years from now but we are barely 2 years old.

As a business owner, your options are greater than the salaried person working a job, to avoid taxes or reduce your tax load. I see this as an advantage business owners deserve for employing others.

If I don't pay a salary that the IRS finds "appropriate" for my position, I get penalized. So don't think a business owner gets a pass there and can take the bulk of his income as non-salary. I do have additional income from profits above and beyond my salary but it is taxed the same way as an employee who works and gets dividends from stocks. So in that sense I have no advantage. The best I can do is have the business provide "other" income. For example, the business pays me to mow the lawn and plant flowers, but that "income" is also taxed.

And I do understand the less of their tax load, the better.

BUT THIS IS THE CASE, with EVERYONE....no?

And hasn't that been my argument all along? You allowed your class prejudices to blind you of that.

I want to be able to keep more of my taxable income for myself, just as you do....this is where YOU are no different than the next guy....

I don't think business owners are some elite class that deserve more of a tax break than the next guy on his own personal and individual income taxes just because he is investing money in to a venture that could make him rich, or break him....

Care

And I have said they are elite? I have said they deserve "more" of a break?

 

[sealybobo]

In other words, in the end, they aren't paying any taxes, and this is just a right wing straw man argument?

 

[Care4all]

In other words, in the end, they aren't paying any taxes, and this is just a right wing straw man argument?

on corporations, for the most part, they are incorporated in to the price of the product for the whole saler and then again, the mark up the retailer puts on the product also considers the taxes they will pay too, if they are a corporation as well....and be incorporated in to their business plan and initial mark up on the product...

I could ''land'' a casual shoe from brazil in to the USA, paying the factory, all shipping costs and all duties on the product for about $12 bucks, then we would sell it to retailers....dept stores for about $26 bucks, and then the retailer would sell it to you/your wife, for around $59 bucks at retail...there are alot of middle men getting their ''cut'' before you get to buy it...

 

[toomuchtime_]

Well.... I thank you for your honesty. You were an important cog in the wheel of a corporation and that's something to be proud of. As you know, jobs are specialized at every large corporation, so there would be no reason why you would care about the amount of taxes the corporation pays. I am, however, wondering why the stock price or EBITDA numbers were never discussed. These are important to any corporation, regardless of size.

Anyway, you seem to be mixing apples and oranges. Obviously, if taxes go up, money that would have gone to profits goes to the government. And a corporation needs to make a profit to stay in business, to grow and, my favorite, to give raises to employees. I'm sure it's obvious that small corporations cannot handle tax increases as well as large corporations, so the effect would be greater for them. So higher taxes mean slower growth, smaller raises and a more sluggish economy.

And if the taxes get too high, wealth will be transferred out of the country to avoid oppressive taxation. Many corporations (and individuals) have off-shore operations to handle oppressive taxation. This is true in many countries, not just the United States. One of the best ways to keep the wealth in any country and to improve the economy is to keep taxes (especially corporate taxes) low.

I think Care's point was, and correct me if I'm wrong Care, that it was her job to make her employer as profitable as possible. No one ever told her to bring in less money because of a tax burden. How stupid would it be if the CEO said, "Oh, dear, we are making too much money, slow down everyone and let us become less profitable so Uncle Sam doesn't get a cut!!!"

The only person normally effected by taxes in the small business world are the actual owners of the company. So while it may mean a smaller profit for the owner it won't effect the company itself.

Off-shoring your profits is basically just ripping the country off.

Actually, higher taxes will translate into fewer jobs as well as the flight of capital. Whenever a business owner decides to expand, he/she weighs the risks against the potential rewards, and when higher taxes diminish the potential rewards, that owner will be reluctant to take some risks that might have seemed attractive if taxes had been lower.

Changes always occur at the margins and will be proportional to the size of the tax increase. A large tax increase could freeze expansion, and a smaller one will just slow it down. However, an accumulation of small disincentives to expand can lead to a stagnant economy and high unemployment, as we saw in the 1970's here and a few years ago in France and, to a lesser extent, in Germany.

 

[Care4all]

Well.... I thank you for your honesty. You were an important cog in the wheel of a corporation and that's something to be proud of. As you know, jobs are specialized at every large corporation, so there would be no reason why you would care about the amount of taxes the corporation pays. I am, however, wondering why the stock price or EBITDA numbers were never discussed. These are important to any corporation, regardless of size.

Anyway, you seem to be mixing apples and oranges. Obviously, if taxes go up, money that would have gone to profits goes to the government. And a corporation needs to make a profit to stay in business, to grow and, my favorite, to give raises to employees. I'm sure it's obvious that small corporations cannot handle tax increases as well as large corporations, so the effect would be greater for them. So higher taxes mean slower growth, smaller raises and a more sluggish economy.

And if the taxes get too high, wealth will be transferred out of the country to avoid oppressive taxation. Many corporations (and individuals) have off-shore operations to handle oppressive taxation. This is true in many countries, not just the United States. One of the best ways to keep the wealth in any country and to improve the economy is to keep taxes (especially corporate taxes) low.

I think Care's point was, and correct me if I'm wrong Care, that it was her job to make her employer as profitable as possible. No one ever told her to bring in less money because of a tax burden. How stupid would it be if the CEO said, "Oh, dear, we are making too much money, slow down everyone and let us become less profitable so Uncle Sam doesn't get a cut!!!"

The only person normally effected by taxes in the small business world are the actual owners of the company. So while it may mean a smaller profit for the owner it won't effect the company itself.

Off-shoring your profits is basically just ripping the country off.

yes, this was my point.

 

[xsited1]

Well.... I thank you for your honesty. You were an important cog in the wheel of a corporation and that's something to be proud of. As you know, jobs are specialized at every large corporation, so there would be no reason why you would care about the amount of taxes the corporation pays. I am, however, wondering why the stock price or EBITDA numbers were never discussed. These are important to any corporation, regardless of size.

Anyway, you seem to be mixing apples and oranges. Obviously, if taxes go up, money that would have gone to profits goes to the government. And a corporation needs to make a profit to stay in business, to grow and, my favorite, to give raises to employees. I'm sure it's obvious that small corporations cannot handle tax increases as well as large corporations, so the effect would be greater for them. So higher taxes mean slower growth, smaller raises and a more sluggish economy.

And if the taxes get too high, wealth will be transferred out of the country to avoid oppressive taxation. Many corporations (and individuals) have off-shore operations to handle oppressive taxation. This is true in many countries, not just the United States. One of the best ways to keep the wealth in any country and to improve the economy is to keep taxes (especially corporate taxes) low.

I think Care's point was, and correct me if I'm wrong Care, that it was her job to make her employer as profitable as possible. No one ever told her to bring in less money because of a tax burden. How stupid would it be if the CEO said, "Oh, dear, we are making too much money, slow down everyone and let us become less profitable so Uncle Sam doesn't get a cut!!!"

The only person normally effected by taxes in the small business world are the actual owners of the company. So while it may mean a smaller profit for the owner it won't effect the company itself.

Off-shoring your profits is basically just ripping the country off.

I know what her point was, but it really has no bearing on the argument as a whole. The fact is that if you increase taxes, you decrease profits. This will have a profound impact on smaller companies and the economy as a whole. And off-shoring your profits can only be considered ripping-off the country if the country has a fair and equitable tax policy. If taxation is oppressive, I see no reason to allow the government to continue ripping off the people.

So while it may mean a smaller profit for the owner it won't effect the company itself.

As mentioned above, this is incorrect.

 

[xsited1]

This is a topic regarding a business/company, that was also a division of a corporation.

I was a Product Marketing Manager/Director for a specific strategic business unit, (sbu) of a company that was part of a major Corporation, doing about 1/3 of the total corporation's sales volume.

What this job entailed, was planning and delivering a specific area of business for the company, from developing the product, to developing a sales plan for the product, to delivering the expected initial markups/retail prices competitively, to the end gross margin profit, to a say in the quality of materials/ the buys for materials , to the buys at factories for the completed product, and every detail in the Marketing/Advertising strategies to sell the product to our customers, who then sold them at retail to their customers.... had to go to trade shows to be there to answer any questions regarding the product the big customers had on it.... when being shown the next season's line by their sales reps or vp's of our company if necessary....just every aspect of how my area of business was executed and delivered from planning my sales to making sure i came in to them by year end.

Basically, RUNNING A BUSINESS....

NOT ONCE was i told what tax bracket the company or corporation was in or how taxes were going up or down. These concerns were the concerns of the VP of Finance and the VP of the Tax division of the corporation.

They did not EVER come to me, or had any power over me or control over me, when it came to running the business.

and

Not once did I look at our stock price to see if i was doing a good job for the Company and making the Company money.

NOT ONCE when i was called in the CEO'S office to discuss my plans for my area of business or my performance of my area of business did we discuss the stock price of our corporation or the tax bracket the company was in or anything other than how my BUSINESS was doing....taxes and stock prices had NOTHING to do with how an actual business is doing, or it's potential for growth, or the lack there of...

So, WHY IS IT, that small business owners see taxes as such a critical part of the businesses they own, instead of concentrating how they can grow their businesses and leaving the tax decisions up to the tax accountant....?

I was always taught, working for a corporation, getting the business "right" was the most important thing...having the right product in the right numbers at the right price kind of thing would bring in the sales plan....you meet your sales plan and margin requirements, and pretty much, the business will be profitable...no matter the end taxes...

just wondering why a business run by a corporation would be so different than what it seems to be for small businesses?

care

Well.... I thank you for your honesty. You were an important cog in the wheel of a corporation and that's something to be proud of. As you know, jobs are specialized at every large corporation, so there would be no reason why you would care about the amount of taxes the corporation pays. I am, however, wondering why the stock price or EBITDA numbers were never discussed. These are important to any corporation, regardless of size.

Anyway, you seem to be mixing apples and oranges. Obviously, if taxes go up, money that would have gone to profits goes to the government. And a corporation needs to make a profit to stay in business, to grow and, my favorite, to give raises to employees. I'm sure it's obvious that small corporations cannot handle tax increases as well as large corporations, so the effect would be greater for them. So higher taxes mean slower growth, smaller raises and a more sluggish economy.

And if the taxes get too high, wealth will be transferred out of the country to avoid oppressive taxation. Many corporations (and individuals) have off-shore operations to handle oppressive taxation. This is true in many countries, not just the United States. One of the best ways to keep the wealth in any country and to improve the economy is to keep taxes (especially corporate taxes) low.

Obviously the Corporation knows what tax bracket or what tax percentage it will pay on it's total earnings, when all is said and done....

This estimate, along with estimates of frieght and duties and the the overhead of the entire company is incorporated in to my initial markup of the product...as with most businesses, the customer buying the product, in general, pays the taxes of the business....along with all costs of the business including the cost of goods, advertising costs, overhead costs, payroll,etc and what estimated taxes that will be paid in the end...

The business itself covers this in the initial mark up of the product....even estimated seasonal markdowns are calculated so that all of these costs are estimated and included in to the initial mark up of the product... if the product could not substantiate the retail it took to achieve that mark up, then we went back to the factory and worked deals for a better cost on it, or stripped something out of the product to get to the saleable retail price at the appropriate margin or we decided not to carry the product if it was not saleable at the retail we felt could do volumes....or we ate the margin requirement and bought the hell out of it anyway, hoping to make the return on investment back in a faster turn over rate...faster sale of it, with alot more of the product on hand to sell.... options are endless really...

we didn't review stock prices because they fluctuated daily and they were not a part of the business... we knew how well we were doing, by how well we were making our sales plan....everything of the business, was incorporated and calculated in our own business plan...for the product.

Care

Point taken. As you explained quite well, increased taxes will increase the cost of doing business and the extra costs will be passed on to the consumer. However, smaller companies will be at a disadvantage since extra costs will cut into their profit margins and they may not be able to remain competitive by increase the cost of goods sold. The net result is that the growth of the economy will slow, smaller companies will become less competitive, incomes will decrease, inflation will increase, and companies will find tax shelters (off-shore, if necessary). That makes the United States less competitive.

 

[Ravi]

The fact is that if you increase taxes, you decrease profits. This will have a profound impact on smaller companies and the economy as a whole.

How exactly will it have an impact on smaller companies. Spell it out in detail.

And off-shoring your profits can only be considered ripping-off the country if the country has a fair and equitable tax policy. If taxation is oppressive, I see no reason to allow the government to continue ripping off the people.

Bullshit. If you are living in this country and making your money off of this country, offshoring your profits to avoid taxes is ripping America off.

 

[Care4all]

Well.... I thank you for your honesty. You were an important cog in the wheel of a corporation and that's something to be proud of. As you know, jobs are specialized at every large corporation, so there would be no reason why you would care about the amount of taxes the corporation pays. I am, however, wondering why the stock price or EBITDA numbers were never discussed. These are important to any corporation, regardless of size.

Anyway, you seem to be mixing apples and oranges. Obviously, if taxes go up, money that would have gone to profits goes to the government. And a corporation needs to make a profit to stay in business, to grow and, my favorite, to give raises to employees. I'm sure it's obvious that small corporations cannot handle tax increases as well as large corporations, so the effect would be greater for them. So higher taxes mean slower growth, smaller raises and a more sluggish economy.

And if the taxes get too high, wealth will be transferred out of the country to avoid oppressive taxation. Many corporations (and individuals) have off-shore operations to handle oppressive taxation. This is true in many countries, not just the United States. One of the best ways to keep the wealth in any country and to improve the economy is to keep taxes (especially corporate taxes) low.

I think Care's point was, and correct me if I'm wrong Care, that it was her job to make her employer as profitable as possible. No one ever told her to bring in less money because of a tax burden. How stupid would it be if the CEO said, "Oh, dear, we are making too much money, slow down everyone and let us become less profitable so Uncle Sam doesn't get a cut!!!"

The only person normally effected by taxes in the small business world are the actual owners of the company. So while it may mean a smaller profit for the owner it won't effect the company itself.

Off-shoring your profits is basically just ripping the country off.

I know what her point was, but it really has no bearing on the argument as a whole. The fact is that if you increase taxes, you decrease profits. This will have a profound impact on smaller companies and the economy as a whole. And off-shoring your profits can only be considered ripping-off the country if the country has a fair and equitable tax policy. If taxation is oppressive, I see no reason to allow the government to continue ripping off the people.

So while it may mean a smaller profit for the owner it won't effect the company itself.

As mentioned above, this is incorrect.

why wouldn't they raise their mark up to cover the costs? if all businesses got a tax hike, then all businesses selling the product will probably raise the price of their products....so the competition;s retail wouldn't be a factor?

 

[xsited1]

The fact is that if you increase taxes, you decrease profits. This will have a profound impact on smaller companies and the economy as a whole.

How exactly will it have an impact on smaller companies. Spell it out in detail.

Because they are less competitive than larger corporations. They cannot absorb the extra costs of doing business. You increase the cost of doing business, you make it more difficult for them to stay in business and make a profit.

And off-shoring your profits can only be considered ripping-off the country if the country has a fair and equitable tax policy. If taxation is oppressive, I see no reason to allow the government to continue ripping off the people.

Bullshit. If you are living in this country and making your money off of this country, offshoring your profits to avoid taxes is ripping America off.[/QUOTE]

I always love your colorful language. It's amusing to see you get so upset over these things.

I see you have bought into the Joe Biden definition of patriotism. That definition is wrong. If the government becomes too oppressive, the people need to fight back. If they can't vote out the bad politicians that make it hard on working Americans, Americans are given no other choice but to find a way to circumvent the oppressive government.

 

[Truthmatters]

The fact is that if you increase taxes, you decrease profits. This will have a profound impact on smaller companies and the economy as a whole.

How exactly will it have an impact on smaller companies. Spell it out in detail.

And off-shoring your profits can only be considered ripping-off the country if the country has a fair and equitable tax policy. If taxation is oppressive, I see no reason to allow the government to continue ripping off the people.

Bullshit. If you are living in this country and making your money off of this country, offshoring your profits to avoid taxes is ripping America off.

I'm so glad this idea of the saintly CEO is dying the death it so deserves.

There are CEOs who are great people and care about the long term market but the ones who care only about cashing in at the expense of the long term health of the market have screwed them and us.

 

[Care4all]

Well.... I thank you for your honesty. You were an important cog in the wheel of a corporation and that's something to be proud of. As you know, jobs are specialized at every large corporation, so there would be no reason why you would care about the amount of taxes the corporation pays. I am, however, wondering why the stock price or EBITDA numbers were never discussed. These are important to any corporation, regardless of size.

Anyway, you seem to be mixing apples and oranges. Obviously, if taxes go up, money that would have gone to profits goes to the government. And a corporation needs to make a profit to stay in business, to grow and, my favorite, to give raises to employees. I'm sure it's obvious that small corporations cannot handle tax increases as well as large corporations, so the effect would be greater for them. So higher taxes mean slower growth, smaller raises and a more sluggish economy.

And if the taxes get too high, wealth will be transferred out of the country to avoid oppressive taxation. Many corporations (and individuals) have off-shore operations to handle oppressive taxation. This is true in many countries, not just the United States. One of the best ways to keep the wealth in any country and to improve the economy is to keep taxes (especially corporate taxes) low.

Obviously the Corporation knows what tax bracket or what tax percentage it will pay on it's total earnings, when all is said and done....

This estimate, along with estimates of frieght and duties and the the overhead of the entire company is incorporated in to my initial markup of the product...as with most businesses, the customer buying the product, in general, pays the taxes of the business....along with all costs of the business including the cost of goods, advertising costs, overhead costs, payroll,etc and what estimated taxes that will be paid in the end...

The business itself covers this in the initial mark up of the product....even estimated seasonal markdowns are calculated so that all of these costs are estimated and included in to the initial mark up of the product... if the product could not substantiate the retail it took to achieve that mark up, then we went back to the factory and worked deals for a better cost on it, or stripped something out of the product to get to the saleable retail price at the appropriate margin or we decided not to carry the product if it was not saleable at the retail we felt could do volumes....or we ate the margin requirement and bought the hell out of it anyway, hoping to make the return on investment back in a faster turn over rate...faster sale of it, with alot more of the product on hand to sell.... options are endless really...

we didn't review stock prices because they fluctuated daily and they were not a part of the business... we knew how well we were doing, by how well we were making our sales plan....everything of the business, was incorporated and calculated in our own business plan...for the product.

Care

Point taken. As you explained quite well, increased taxes will increase the cost of doing business and the extra costs will be passed on to the consumer. However, smaller companies will be at a disadvantage since extra costs will cut into their profit margins and they may not be able to remain competitive by increase the cost of goods sold. The net result is that the growth of the economy will slow, smaller companies will become less competitive, incomes will decrease, inflation will increase, and companies will find tax shelters (off-shore, if necessary). That makes the United States less competitive.

smaller companies pay less in taxes than larger companies already, don't they....just by the fact that they are smaller, they are probably in a lower tax bracket?

btw, i am enjoying this discussion....it has taught me a great deal about small businesses vs corporations and how things work...

i also enjoy the devil's advocate role!!!!

care

 

[Ravi]

Because they are less competitive than larger corporations. They cannot absorb the extra costs of doing business. You increase the cost of doing business, you make it more difficult for them to stay in business and make a profit.

Give me a concrete example of how raising taxes on MY PERSONAL INCOME would make it difficult for me to stay in business and make a profit.

I always love your colorful language. It's amusing to see you get so upset over these things.

I see you have bought into the Joe Biden definition of patriotism. That definition is wrong. If the government becomes too oppressive, the people need to fight back. If they can't vote out the bad politicians that make it hard on working Americans, Americans are given no other choice but to find a way to circumvent the oppressive government.

Oh, yeah, I'm boohooing over here. *sniff*

Fight back as you will but you are still ripping off your fellow Americans.

 

[xsited1]

I think Care's point was, and correct me if I'm wrong Care, that it was her job to make her employer as profitable as possible. No one ever told her to bring in less money because of a tax burden. How stupid would it be if the CEO said, "Oh, dear, we are making too much money, slow down everyone and let us become less profitable so Uncle Sam doesn't get a cut!!!"

The only person normally effected by taxes in the small business world are the actual owners of the company. So while it may mean a smaller profit for the owner it won't effect the company itself.

Off-shoring your profits is basically just ripping the country off.

I know what her point was, but it really has no bearing on the argument as a whole. The fact is that if you increase taxes, you decrease profits. This will have a profound impact on smaller companies and the economy as a whole. And off-shoring your profits can only be considered ripping-off the country if the country has a fair and equitable tax policy. If taxation is oppressive, I see no reason to allow the government to continue ripping off the people.

So while it may mean a smaller profit for the owner it won't effect the company itself.

As mentioned above, this is incorrect.

why wouldn't they raise their mark up to cover the costs? if all businesses got a tax hike, then all businesses selling the product will probably raise the price of their products....so the competition;s retail wouldn't be a factor?

Uh, no. You're assuming that every business will increase their prices at the same rate because they all got the same tax increase. That is incorrect. To remain competitive, corporations will not raise prices more than they have to. Larger companies can usually absorb costs better than smaller ones, so the small companies will not be as competitive.

So here's my question to you: Raising taxes will increase the cost of doing business, will increase the price of goods sold which means everyone will have to pay more for a given product, will make smaller companies less competitive, for some companies profits will decrease which means wages will not increase. And I didn't even mention anything about foreign competition. Does this bother you at all?

 

[Care4all]

The fact is that if you increase taxes, you decrease profits. This will have a profound impact on smaller companies and the economy as a whole.

How exactly will it have an impact on smaller companies. Spell it out in detail.

Because they are less competitive than larger corporations. They cannot absorb the extra costs of doing business. You increase the cost of doing business, you make it more difficult for them to stay in business and make a profit.

And off-shoring your profits can only be considered ripping-off the country if the country has a fair and equitable tax policy. If taxation is oppressive, I see no reason to allow the government to continue ripping off the people.

Bullshit. If you are living in this country and making your money off of this country, offshoring your profits to avoid taxes is ripping America off.

I always love your colorful language. It's amusing to see you get so upset over these things.

I see you have bought into the Joe Biden definition of patriotism. That definition is wrong. If the government becomes too oppressive, the people need to fight back. If they can't vote out the bad politicians that make it hard on working Americans, Americans are given no other choice but to find a way to circumvent the oppressive government.[/QUOTE]

NO you are wrong in every manner on this.... these few people that can offshore their share of taxes are hurting the rest of america, stuck paying THEIR SHARE of the burden.

they should legally, have the changes done, or if they can't, they should have to pay what the next guy in their tax bracket has to pay....and should not hide their income offshore.

 

[toomuchtime_]

I think Care's point was, and correct me if I'm wrong Care, that it was her job to make her employer as profitable as possible. No one ever told her to bring in less money because of a tax burden. How stupid would it be if the CEO said, "Oh, dear, we are making too much money, slow down everyone and let us become less profitable so Uncle Sam doesn't get a cut!!!"

The only person normally effected by taxes in the small business world are the actual owners of the company. So while it may mean a smaller profit for the owner it won't effect the company itself.

Off-shoring your profits is basically just ripping the country off.

I know what her point was, but it really has no bearing on the argument as a whole. The fact is that if you increase taxes, you decrease profits. This will have a profound impact on smaller companies and the economy as a whole. And off-shoring your profits can only be considered ripping-off the country if the country has a fair and equitable tax policy. If taxation is oppressive, I see no reason to allow the government to continue ripping off the people.

So while it may mean a smaller profit for the owner it won't effect the company itself.

As mentioned above, this is incorrect.

why wouldn't they raise their mark up to cover the costs? if all businesses got a tax hike, then all businesses selling the product will probably raise the price of their products....so the competition;s retail wouldn't be a factor?

Competition might not be a factor, but consumer demand might be. Even cigarette smokers endured the pain of cutting back as the price of cigarettes grew too high. If raising prices to preserve your profit margin means fewer sales, then to try to preserve the level of total profits, a business owner will have to cut costs, probably meaning laying off non essential workers or using part time or temp workers when possible. If the business owner decides he/she can best optimize profits by keeping the same price, again the incentive will be to cut costs, and this will likely mean some layoffs or cutbacks in compensation to workers.

 

[xsited1]

Because they are less competitive than larger corporations. They cannot absorb the extra costs of doing business. You increase the cost of doing business, you make it more difficult for them to stay in business and make a profit.

Give me a concrete example of how raising taxes on MY PERSONAL INCOME would make it difficult for me to stay in business and make a profit.

We were talking about increasing taxes on businesses...

If you own a small business, your personal income is tied into overall revenue and profit of the company. Increase taxes and you reduce your margins. Reduce your margins and you become less competitive and your income decreases. It's easy to see that this will have a net negative effect on your business and the economy.

I always love your colorful language. It's amusing to see you get so upset over these things.

I see you have bought into the Joe Biden definition of patriotism. That definition is wrong. If the government becomes too oppressive, the people need to fight back. If they can't vote out the bad politicians that make it hard on working Americans, Americans are given no other choice but to find a way to circumvent the oppressive government.

Oh, yeah, I'm boohooing over here. *sniff*

Fight back as you will but you are still ripping off your fellow Americans.[/QUOTE]
[/QUOTE]

 

[Truthmatters]

Check out the cons on here defending the uber wealthy who caused this mess with their greed for Cheating on their taxes.

Unbelievable.

 

[Truthmatters]

US wants Swiss bank UBS to identify tax dodgers

 

[xsited1]

How exactly will it have an impact on smaller companies. Spell it out in detail.

Because they are less competitive than larger corporations. They cannot absorb the extra costs of doing business. You increase the cost of doing business, you make it more difficult for them to stay in business and make a profit.

And off-shoring your profits can only be considered ripping-off the country if the country has a fair and equitable tax policy. If taxation is oppressive, I see no reason to allow the government to continue ripping off the people.

Bullshit. If you are living in this country and making your money off of this country, offshoring your profits to avoid taxes is ripping America off.

I always love your colorful language. It's amusing to see you get so upset over these things.

I see you have bought into the Joe Biden definition of patriotism. That definition is wrong. If the government becomes too oppressive, the people need to fight back. If they can't vote out the bad politicians that make it hard on working Americans, Americans are given no other choice but to find a way to circumvent the oppressive government.

NO you are wrong in every manner on this.... these few people that can offshore their share of taxes are hurting the rest of america, stuck paying THEIR SHARE of the burden.

they should legally, have the changes done, or if they can't, they should have to pay what the next guy in their tax bracket has to pay....and should not hide their income offshore.

It is not wrong to resist an oppressive government. That's what Patriotism is all about.