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That's simply not true. Commodity businesses can't just bake taxes into the price, since no company controls the price.
Every single cost is baked into sales and prices or the company dies.
ETA - If business taxes don't matter as you imply why not increase business taxes to 100% of sales? A big win for everyone...right? I mean it all comes out of the owner's/stakeholders pocket.......right?
As with all of economics in hard terms this kind of thing becomes complex fast. Here's a bar napkin Ph.D version..........one school of thought states businesses with pricing power simply increase prices to cover new taxes immediately. Businesses without pricing power either endure via reduced margins in the short term and pass on the new costs in the longer term or close. Businesses with razor thin margins - Airlines, most restaurants, gasoline rack sales etc. have no choice but to pass on new costs including taxes.
That's simply not true. Commodity businesses can't just bake taxes into the price, since no company controls the price.
Quote:
Originally Posted by serger
Nope. If everything could be just "baked into", all those companies would never suffer losses. Which, clearly, is not the case.
How you know that people don't understand how businesses operate.
Businesses will lose money for a variety of reasons, the main one being they can't sell their products for what it costs to produce them. Those costs include taxes.
Every single input cost is factored into the price of a product.
Business taxes are a pass-through.
As a note, "rent seeking" as a pejorative goes back to Marx. Karl, not Groucho.
Not that I'm saying that many of you, as well as some elected officials and bureaucrats who formulate these proposals, are neo-Marxists.
That's simply not true. Commodity businesses can't just bake taxes into the price, since no company controls the price.
It is true. ANY money a corporation pays in taxes absolutely has to come from where? The revenue they receive from their customers/clients. THAT'S who pays corporate taxes.
Good grief. Time for my guess WHO benefits from capital gains post again, for those who've failed to think this through...
100 million (or more) American workers and retirees have, in aggregate, $38.4 trillion worth of investment assets in their pensions/retirement accounts. They absolutely DEPEND on capital gains for their pension payouts and/or retirement draws both now and/or in the future.
To put that amount in perspective, the ENTIRE S&P 500 has a total value of $42.49 trillion.
Know one or more of those 100+ million with a pension or retirement account, working or retired? Yourself, even? THEY, and possibly even YOU, too, depend on capital gains.
The Democrats count on their voter base being too ignorant/uneducated to know any of the facts I've posted here. Hopefully, I've opened some eyes as to what's REALLY going on.
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Time for my guess WHO benefits from capital gains post again, for those who've failed to think this through... 