Two Different Perspectives on Taxes

[landonew]

it sounds like u r agreeing with me.

I was. Just elaborating

 

[Independent]

I see that Rustic and ERD commented on "who pays corporate taxes". Here's the source I couldn't find:

http://www.cbo.gov/ftpdocs/75xx/doc7503/2006-09.pdf

The general rule is that if you tax a transaction the actual incidence of the tax falls more heavily on the side that finds it harder to substitute away from the transaction. (e.g. SS taxes paid by employers are "really" shifted to workers because the employer can outsource or automate to avoid hiring people, but workers are pretty much stuck with jobs that are in the SS system.)

The paper says that if capital is free to move across international borders, and workers aren't, then capital can shift domestic income taxes onto workers. I didn't read far enough to see why they think consumers avoid the tax -- possibly because they can shift to imported goods and goods that don't use as much capital.

At any rate, I'm in the camp of those who believe that taxing US corporations on profits is mostly a "feel good" item for those who think corporations are evil.

 

[Rustic23]

I am quite sure the Congressional Budget Office would like to convince all of us that those dirty nasty old corporations that rape and pillage from the poor workers are the ones that will pay the tax. I however do not buy that and no amount of fancy words are ever going to change my mind. The money to pay the tax comes from the people that pay for their product. Now if you can tell me where else they would get the money from, I might listen. However, Mr. Exon, by the way ever meet him, has to get money from the sale of energy products. He must sell it for enough not only to pay all the expenses in producing those energy products, but also pay the taxes, and if he is going to keep his share holders happy pay a dividend. By the way, do you really think the cash for a dividend also is paid by the corporation, or do you think it comes out of profits paid for by clients?

 

[Independent]

I am quite sure the Congressional Budget Office would like to convince all of us that those dirty nasty old corporations that rape and pillage from the poor workers are the ones that will pay the tax. I however do not buy that and no amount of fancy words are ever going to change my mind. The money to pay the tax comes from the people that pay for their product. Now if you can tell me where else they would get the money from, I might listen. However, Mr. Exon, by the way ever meet him, has to get money from the sale of energy products. He must sell it for enough not only to pay all the expenses in producing those energy products, but also pay the taxes, and if he is going to keep his share holders happy pay a dividend. By the way, do you really think the cash for a dividend also is paid by the corporation, or do you think it comes out of profits paid for by clients?

If I'm the "you" in this post, I think you are seeing a disagreement that I'm missing.

 

[Rustic23]

Sorry, misread your post.