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by Epa095 955 days ago
I invite you to actually spell out that argument.

Remember that companies are taxed on their surplus, not their income. So this means that these kinds of taxes are not a extra cost that is evenly distributed among all companies, companies with low or no surplus will pay little. Up-coming competitors (with low surplus) get an advantage, increasing competition.

If the companies could simply increase their prices 15% today without loosing to competition with others, they would already have done so.

1 comments

No, because that’d be an independent increase. In this case shareholders are arbitraging their capital against central bank interest rates. So parent holds.