Corporate Taxes (user search)
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  Corporate Taxes (search mode)
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Poll
Question: In all actuality, corporate taxes just get passed on to consumers (higher prices) or employees (lower wages)
#1
Agree
 
#2
Somewhat Agree
 
#3
Somewhat Disagree
 
#4
Disagree
 
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Partisan results

Total Voters: 19

Author Topic: Corporate Taxes  (Read 1316 times)
Nym90
nym90
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E: -5.55, S: -2.96

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« on: November 22, 2004, 05:36:37 PM »


It depends on the market, of course. If corporations can reduce wages or raise prices without reducing their profit margins otherwise (since doing these things can, of course, lead to poorer quality employees or reduced sales, which can ultimately hurt profits more than the initial labor savings or initial increased income from the higher prices), then they will just pass on the taxes down to the masses. If wages are already as low as they can go, or prices as high as they can go, however, which they generally are (if corporations could increase profits by raising prices or cutting wages, they would have already done so), then corporations have to eat it into profits to pay higher taxes.

So generally I would say disagree, because most corporations are already making as much profit as they can, and can't raise prices or cut wages because most of them have already maximized profits as much as they can. So increased taxes will reduce profits directly, since most companies can't cut salaries or raise prices without unduly risking losing sales and losing good employees.

At least that's what I thought after giving it some thought. Feel free to rebut.
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