Taxing Corporations is a little known way to ‘tax’ the consumers?
Posted on January 23, 2009 by admin
ifoyo asked:
Since corporations simply pass the tax on to the consumers as higher prices for their product, How does that help the country? It is actually a disguised tax INCREASE. Obama’s PLAN.
Since corporations simply pass the tax on to the consumers as higher prices for their product, How does that help the country? It is actually a disguised tax INCREASE. Obama’s PLAN.
the real secret tax that only takes a little account to see is the “rebate” that some companies offer.
its a scam.
they inflate their prices by say $1000 (that they will give you back).
but in the process you pay sales tax on it.
The only way a corporation can make the money to pay the corporation tax is to charge the consumer enough to pay all expenses for the corporation (salaries, maintenance, new equipment, health insurance for employees, construction costs, utilities, etc.) which include any taxes.
If you owned a house and wanted to rent it for income, you would charge enough that you could afford any scheduled maintenance, insurance on the structure, property taxes, etc.) with enough over that to make it worth your while. So, no matter how you work it out, the tenant ends up paying the property tax somehow or other. It is part of the owner’s debt to keep the house.
If you made a product (say handbags) and found a place to sell them, you would have to charge enough to pay the store their commission, any expenses for materials and equipment, costs of the place where you do the manufacturing, and all other charges involved in making them and selling them. You would also include sales tax and your personal income tax. The money has to come from somewhere.
That is the biggest problem with increasing taxes for businesses and/or the minority of upper income people. We already have about the highest business taxes in the world, so increased taxes would mean lower wages and/or would be passed on to consumers (along with matching sales taxes) and/or would drive more business out of the country. So Obama is starting to flip flop on his plans, since they would lead to higher inflation and deeper recession.