General Discussion
In reply to the discussion: Graphic: Who Pays Taxes [View all]TampaAnimusVortex
(785 posts)Last edited Sat Dec 19, 2015, 04:56 PM - Edit history (1)
"corporations simply grow their profits higher with that extra money"
What extra money? The companies don't make more or less simply because of the imposition of a say $2 tax on the widgets. They pass that cost through. At worse, it will simply lower overall sales. Similarly they lower costs in competition if the tax is removed, just as if their material costs got cheaper.
Taxes are factored into the price of the product just like all other labor and capital costs. It's why airline ticket prices go up and down somewhat with the price of oil. Prices go up with the costs of production, costs go down via competition. Taxes don't change that dynamic. All the tax on the corporation is, is a stealth tax on you.