Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I hope the OP realizes all corporate taxes ARE PASSED THROUGH to the consumer. FedEx must maintain their gross margins that they tell their stock holders they will get. Any expenses that go up including taxes cause price increases.
Most liberals are clueless about business and economics or purposely choose to ignore it.
I hope the OP realizes all corporate taxes ARE PASSED THROUGH to the consumer. FedEx must maintain their gross margins that they tell their stock holders they will get. Any expenses that go up including taxes cause price increases.
Most liberals are clueless about business and economics or purposely choose to ignore it.
Sure they are passed through but they are already factored into the prices people pay. Are prices decreasing? Of course not. This will be reported as profit.
FedEx uses the country's infrastructure in order to make money but got a zero dollar tax bill courtesy of Trump.
Fedex like any other trucking company pays various fees like fuel taxes, high registrations fees and there is even an excise tax on the tires they buy. That said I would agree they are being subsidized but it's the entire trucking industry. Their costs should be raised to help fund better road infrastructure. This would increase the cost of goods for everyone, the burden of building and maintaining roads is more fairly distributed to people who don't drive but are benefiting from the roads I'm paying for. I the motorist have better roads to drive on and should end up paying less for them.
Company's never wind up paying ANY taxes in the long run. They pay them initially, then add the cost of those taxes into the price they charge for their good, or service. Once they sell it to you (or any consumer), you, or the other consumer/s, pay the so-called Corporate taxes. They pass through the tax cost along to all consumers....including YOU! You are the person who is really paying corporate taxes every time you consume goods & services.
This is not my opinion, it is fact.
How do I know this? Because I own a corporation, and this is what I do, and all my competitors, and my suppliers, and their suppliers. I also hold a BBA, and MBA, and my education helped me to understand these principles, but it was my own personal experiences as a business owner that have been most enlightening.
These passed-through taxes are know as "embedded taxes". Everything you buy, or consume has these embedded taxes burried into the retail price.
To learn more about it, read Neil Boortz's Fair Tax books, or just Google "fair tax" and read. I think Boortz claims the average embedded tax is 17% if I recall correctly.
If we eliminate ALL corporate taxes, eventually, prices would go down for stuff, and corp profits would remain the same. There would be some short term increases in corp profits, but eventually, they'd erode due to competition.
Quote:
Originally Posted by thecoalman
This is what a lot of people fail to understand. Whether I pay $1 to the light company or $1 to the tax man they are both an expense of $1 included in the cost of my product or service.
Quote:
Originally Posted by Rachel976
Yes, and the same argument goes for increasing the minimum wage. Companies would have two choices:
1) Raise the prices on goods and services
2) Fire employees
A business can only raise prices so much. There is a market for such items and services only at a certain price point. Go over that, and you lose business, or someone charges less and takes away the business. You cannot just raise prices as soon as some expense goes up.
Like with Medicine. Lots of people are going over the border to Mexico to get stuff done, or buy stuff. How is the doctor, pharmacy going to jack up prices now? At some point everyone may as well take a vacation to a Mexican resort while at the same time buy the drugs they need, or get the treatment. (Obviously this will only apply to certain kinds of procedures or drugs).
Unless you have monopoly like a utility. But then again we can always regulate utilities to ensure all is fair.
Fedex like any other trucking company pays various fees like fuel taxes, high registrations fees and there is even an excise tax on the tires they buy. That said I would agree they are being subsidized but it's the entire trucking industry. Their costs should be raised to help fund better road infrastructure. This would increase the cost of goods for everyone, the burden of building and maintaining roads is more fairly distributed to people who don't drive but are benefiting from the roads I'm paying for. I the motorist have better roads to drive on and should end up paying less for them.
Companies will keep this money as profit, it's as simple as that. Gary Cohn found this out when he was talking to corporations during the run up to the passing of the Trump tax plan and Reagan tried this before and it didn't work.
"So what will companies do with a windfall of after-tax profits? The odds that it will flow back into the real economy aren’t looking good. Many major companies are planning to hand that money to their investors through dividends and share buybacks."
Companies will keep this money as profit, it's as simple as that. Gary Cohn found this out when he was talking to corporations during the run up to the passing of the Trump tax plan and Reagan tried this before and it didn't work.
"So what will companies do with a windfall of after-tax profits? The odds that it will flow back into the real economy aren’t looking good. Many major companies are planning to hand that money to their investors through dividends and share buybacks."
What does your reply have to do with what you are quoting?
That is self explanatory. FedEx is not reinvesting, they are keeping that money as profit, the same thing happened when Reagan tried it. This is not complicated. They'll tell voters anything they want to hear to get it passed, then laugh all the way to the bank.
I hope the OP realizes all corporate taxes ARE PASSED THROUGH to the consumer. FedEx must maintain their gross margins that they tell their stock holders they will get. Any expenses that go up including taxes cause price increases.
Most liberals are clueless about business and economics or purposely choose to ignore it.
Well if that’s true why weren’t the tax cuts passed on to consumers or is this just a one way street.
Who owns Fedex? Pension funds? IRA's? Mutual funds?
So the purpose of the cuts was to increase stock prices and dividends.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
