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If we raise taxes on corporations do the consumers and workers essentially pay the vast majority of the tax?
As in, the company will either raise the cost of the goods it produces OR lower what it costs for labor (ie less salary/benefits/workers/etc) OR a combination of both 9 time out of 10?
Excellent point! Many of us have tried to explain this to them, but the brainwashing has been quite severe. For some reason, they inexplicably believe that magically somehow businesses don't factor their expenses into employee salaries and/or prices.
Exactly.You have to wonder if liberals are being intentionally deceptive? Or do they really not know any better, whether that's due to ignorance or blindly believing leftist propaganda.
Well, when you have Obama who lies constantly as your leader...a man who says he would raise the capital gains tax even if that meant less government revenue, because that would be more fair and so he could spend more...seriously, you can't make this stuff up... Talk about a low IQ argument from Obama.
If we raise taxes on corporations do the consumers and workers essentially pay the vast majority of the tax?
As in, the company will either raise the cost of the goods it produces OR lower what it costs for labor (ie less salary/benefits/workers/etc) OR a combination of both 9 time out of 10?
ALL taxes are paid by individuals.
If corporate taxes are raised, they will be paid by 1) consumers through higher prices, 2) employees through lower wages and benefits, and 3) owners through lower returns.
Corporate taxation is a wonderful scheme for politicians to use to divert attention away from what is really happening.
"We won't let those evil corporations get away with becoming too wealthy! We'll raise taxes on the corporations to make sure that they pay their fair share!"
What a crock. Sadly, too many people naively believe this.
If we raise taxes on corporations do the consumers and workers essentially pay the vast majority of the tax?
As in, the company will either raise the cost of the goods it produces OR lower what it costs for labor (ie less salary/benefits/workers/etc) OR a combination of both 9 time out of 10?
depends on the type of good/service you're talking about
something like cable services, where there is zero competition and the government basically accepts monopolies -- costs will be passed to consumers in the form of higher prices.
something more globally competitive -- we'll say auto manufacturing -- the market cannot bear higher prices, so you'd be more likely to see those costs absorbed by shareholders.
depends on the type of good/service you're talking about
something like cable services, where there is zero competition and the government basically accepts monopolies -- costs will be passed to consumers in the form of higher prices.
something more globally competitive -- we'll say auto manufacturing -- the market cannot bear higher prices, so you'd be more likely to see those costs absorbed by shareholders.
If they lose profitability, Obama comes in and throws $100 Billion at GM when counting promises of future tax exemptions, consumer subsidies, etc...
To a certain point, the company can't let their shares fall, and will look to keep profit by cutting worker compensation one way or another.
Sounds like progressives are ready for a for a flat/fair tax. Otherwise, I don't want to hear your whining.
Flat taxes are regressive, unless paired with an EITC.
Quote:
Originally Posted by Cruzincat
If your state is taking 11% in income taxes, you should move to another state. Even in the tax hell that is Maryland, the most one pays is about 8% on taxable income, after deductions. There are few states that take more than Maryland does.
I live in New York. My effective tax rate was between 5% and 6%. The OP was referring to the combination of property tax, sales tax, and income tax. Where I live sales tax is 8.75% on everything except food and clothes. I am thankful that New York has the decency to not tax people on basic needs. If I were taxed on food and clothing, I'm looking at a total state tax liability far north of 10%.
Quote:
Originally Posted by InformedConsent
Even if those state tax rates are accurate, I'm not seeing how adding them to their respective income groups' total effective federal tax rate results in the working poor paying twice as much in taxes as the rich.
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I just don't see how that document is accurate.
I just mailed my tax payment out. I don't make a super high income and I have a very experienced accountant. My effective Federal tax rate + payroll taxes would put me in the 90-95% income bracket on that chart. I do not make more than 90-95% of people out there.
again, how companies respond to increasing costs all goes back to the level of competition in that industry.
That is the point - it is an answer to your question. You damage a large company in global competition enough and it goes out of business and tens of thousands lose jobs or Obama throws over $100,000,000,000.00 of tax payer money at it.
Much of the profits of a company will go back into research, development, and production eventually. Taking away that profit will invariably lead to cheaper costs of production (weaker product or less compensation) OR less research and development, which hurts the company and the employees in the long run.
Less employee compensation reduces government tax revenue.
How does a company directly take it out on the shareholders (the biggest shareholders of a company like Ford tend to be pensions and people with 401Ks accumulated)? The next biggest shareholder is the company itself, which needs to preserve its assets to survive.
Notice how Romney's effective tax rate is above 95% of the country. So when Obama was claiming that teachers, firemen, and police pay a higher effective tax rate he was BSing. CNN also estimated that Romney's effective tax rate was more than 90% of the country.
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