when they buy any product or service?
All business tax increases are really taxes on the poor. they get stuck paying the highest percentage of their income in taxes because they have have to pay the highest percentage of their income for the goods and services they need to live.
I bet the politicians love it. they get to say "We taxed those evil businesses" when in fact they are taxing you.
Here is the flaw in your theory:
1. Businesses can't increase prices indefinitely. At some point people will stop buying.
2. if a business is pricing its products optimally, it is ALREADY charging the most money that people are willing to pay.
3. Therefore, if a business increases prices in response to a tax increase, either (a) the business was already charging sub-optimum prices, or (b) revenue, and therefore profit, will decrease.
4. Therefore, in response to a tax increase, businesses are more likely to take other measures than increase prices: they can cut dividends, reduce the work force, cut wages, reduce other costs, not buy new equipment, etc., etc.
Conservatives always claim that liberals don't understand economics. but it seems like conservatives only want to apply economic theory when it's convenient to do so. When the answer provided by economic theory doesn't fit with their agenda, they stop thinking like true economists.
No! Say it isn't so. Big business wouldn't do that.You forgot that big business also has lawyers on their staff that gets them around paying these so called tax increases. if you think big businesses are paying those tax increases then you are delusional. It's only a maufactured excuse to gouge middle class and poor Americans once again.
No, and I don't laugh at anybody for this, but the fact is that none of income tax collected goes to pay for anything but interest payments on loans made by the federal reserve to the US government.
That's right, we get NO government "services" for the income tax we pay.
I'm not going to source this for you. if you are really concerned ? research it yourself, it will make more of an impact on your thinking about income tax. Start with the Grace Commission report of 1984.
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Baloney. I laugh at those too stupid to realize that businesses which price their products unreasonably will suffer the wrath of Capitalism in Action.
As in, the consumer will buy somebody else's product. You know, free market and all that jazz?
Businesses succeed in this country because of the system. Therefore it is perfectly reasonable to expect businesses to pay into that system. In the form of taxes.
Case closed.
EDIT: Wow. "Sadcat" kicked your as$.
Certainly not all business taxes are on the poor, there are many business that sell nothing to poor people and cater to the rich. I've worked for a few.
All expenses born by business are paid by their customers in the form of a price, that is correct.
Businesses are also in the best position to hire competent tax advice.
Taxes still get paid, but dealing with the IRS is left to the professionals.
What a great argument for replacing all personal income taxes with business income taxes!
Accurate, true, same as a consumption tax which the Cons support. however taxes can be directed toward different industries. new cars, poor people don't buy new, so it hits the middle and upper class.
I would laugh if their stupidity only affected them. but it kills us all.
The really sad thing is that it is such a simple concept to understand.
Sadcat missed one thing businesses do in the face of higher taxes?they cut their work force.
glenda tax's will raise on all businesses. and they all will raise there prices to cover it. there sure not going to reduce there profit
I am more worried about interest tax then income tax.
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