[BirdPlusPlus]

The unfortunate truth about corporate taxes is they're not really possible. There are two possible outcomes.

1. The business cannot absorb the levied tax into its overhead and shuts down. Production and operations cease. Said business doesn't buy materials or supplies, workers become unemployed, and customers do not shop. Result: a net revenue loss in sales, payroll, and income taxes.

2. The business can absorb the levied tax into its overhead... which is then offloaded onto the consumer whose buying power and standard of living decreases.

Follow the money long enough and you'll find most taxes are paid by the individual consumer in roundabout and convoluted ways.

[ChrisLomont]

>Follow the money long enough and you'll find most taxes are paid by the individual consumer in roundabout and convoluted ways.

I take it you didn't look at the link I posted. The entire field of economics would disagree with you.

Part of the cost is shifted to consumer, depending on elasticity. The rest is paid by owners. Billionaires tend to own companies that pay tax, money which would otherwise have accrued to the owner.

That is what the CBO report I linked quantifies.

[mercutio2]

I don't think economists agree that tax incidence is so consistently one sided. It's a whole field of study. "Not really possible" seems like an extraordinary claim.

[BirdPlusPlus]

Just earlier this week I was talking about this concept over drinks with my uncle, who has a PHD in Economics.

- though I didn't mean to imply that the entire tax gets offloaded downstream. That was clumsy.

My point is that taxing corporations without inordinately harming their employees and consumers' standards of living is impossible. Even worse, it grants a competitive edge to established corporations over lesser competing firms, which lack the connections or resources to navigate that tax code as efficiently.

It just isn't healthy for the market or effective at its purpose. If we're serious about maintaining healthy competitive markets and a public with purchasing power, we should consider different options.

[ChrisLomont]

Agreed. Also taxes are levied where collection is possible; economic theory is not the only consideration. Thus income is taxed in many forms, since it's easier to tax than say value.

And there's political reasons - corp tax is popular with the masses even if it's inefficient.

[closeparen]

A single medical issue or college-bound child can cost decades worth of consumer products. It could be rational to make that tradeoff.