Corporate Taxes
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  Economics (Moderator: Torie)
  Corporate Taxes
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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 1283 times)
A18
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« on: November 20, 2004, 09:14:20 PM »

Agree or disagree?
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KEmperor
Junior Chimp
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« Reply #1 on: November 21, 2004, 12:19:10 PM »

Agreed, of course.
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A18
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« Reply #2 on: November 21, 2004, 12:38:23 PM »

I also agree

A lot of people are voting, but they aren't posting. Smiley
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Mikem
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« Reply #3 on: November 21, 2004, 02:43:43 PM »

obviously agree, anyone who disagrees must not know anything about business.  its just basic accounting...
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Lunar
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« Reply #4 on: November 21, 2004, 03:51:59 PM »

Umm..what types of taxes AREN'T eventually passed down to the consumer?
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A18
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« Reply #5 on: November 21, 2004, 04:08:15 PM »

I'm just saying. Some people like to play the populist card and talk about taxing big, greedy corporations instead of people.
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Erc
Junior Chimp
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« Reply #6 on: November 22, 2004, 04:10:38 PM »

Taxes are taxes.  It doesn't matter who's getting taxed, the economic impact is the same.

(Note that it does matter what's being taxed)
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Nym90
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« Reply #7 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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A18
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« Reply #8 on: November 22, 2004, 05:52:47 PM »

You left out the other half of it: every company you're competing against now has this additional expense.

The prices are no longer as high as they can go. The wages are no longer as low as they can go. You're all going to raise prices or cut wages/salaries where most convenient.

An identical situation would emerge when the price of something your industry relies on went up.
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