What do you think happens when there is a tax increase on a major corporation?
Posted on March 14, 2009 by admin
twisno1 asked:
Do they just accept the loss or raise the prices of their goods and pass the tax burden on to the consumer.
P.S. This is a pretty easy question to answer if you have any knowledge of the economy whatsoever unlike most Democratic constituents.
Do they just accept the loss or raise the prices of their goods and pass the tax burden on to the consumer.
P.S. This is a pretty easy question to answer if you have any knowledge of the economy whatsoever unlike most Democratic constituents.
They raise prices and/or lay people off.
They will raise their prices and cut jobs. Only free-loaders and paranoids don’t see it.
They pass it right thru to the consumer. Liberal economics 101. The opposite effect is always the result of misguided and naive liberal public policy.
I would like to think they reduce the ridiculously high salaries of their top officers and eliminate their golden parachutes.
You know what happens to our country when the Republican Presidents double the National Debt every time their in power?
um… they have to raise prices duh.
if you run a company, you are forced by the market and competition to keep the lowest price that you possibly can, and if you have to pay more money, the lowest price is higher. if we take more from corps and give it to people, there will be absolutly no benefit to people because they will have to pay higher prices on EVERYTHING.
edit: ive heard clinton saying that she wants to raise the tax on oil compainies because of their excessive profits, but if they still want to make the same profits, all they have to do is raise their prices. once they raise prices, the tax increase has been passed on to the consumer, and all that ends up happening is higher gas prices. taxes on corporations = taxes on consumers.
If they taught economics properly, it would be the end of the Democratic party. Obama and Clinton would be laughed off the stage.
Easy! They raise their prices.
Hmm . . . You wouldn’t be referring to the tax hike on the oil companies recently levied by a certain group of democrats, would you?
Basically three things may happen.
1) Pass the cost of the tax increase on to the consumer
2) Lay off staff and workers to compensate for the tax increase.
3) Move the production facilities overseas to avoid the high taxes.