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by tuna-piano 3626 days ago
It's a mix. Corporate taxes end up affecting the customer, employee, supplier and shareholder.

Think about the two extremes: If taxes are 100% - the business goes under and everyone loses their jobs, suppliers lose a customer, customers lose a product they liked and shareholders lose everything.

If taxes are 0%, the business grows - shares become more valuable, the demand (and therefore price) for employees and suppliers increases, and customers will pay less.

2 comments

And there will be no police, contract enforcement, roads, etc.
It sounds like you found out costs exceeding cash flow is bad, not that taxes are bad. Anything taking 100% cash flow from the business is likely detrimental.

The naivety of your second paragraph suggests you think business is not operating in its own best interest. How does employee and supplier costs going up = consumer cost going down? There seem to be huge leaps being made here.

Corporate tax policy and supply/demand economics is probably too complex to try to boil down to a a short paragraph each.