Common Sense Questions

1. If corporate taxes are raised from 21% to 28%, will these corporations pay the extra 7% or will they pass that extra cost to consumers?

Well they didn't pass the tax decrease on to consumers or employees so I imagine they will pass the increase on to consumers and probably tell their employees that raises will be small because of the tax increase.

A few businesses can pass on increased taxes to the consumers. Some will cut costs to afford the new taxes. Some will hire tax accountants to get out of increased taxes. Some might decide to move to a low tax country. Ireland lowered their corporate tax rate when they were in a recession and European and American businesses moved their headquarters there to save on taxes. Revitalized the Irish economy.

Thumper100 wrote: Well they didn't pass the tax decrease on to consumers or employees so I imagine they will pass the increase on to consumers and probably tell their employees that raises will be small because of the tax increase.

Well the record low unemployment during Trump would be a decent indicator that companies were able to expand and hire because of a lower tax burden. As someone who has owned a business, it makes sense to me but others may disagree.

FredHayek wrote: Some might decide to move to a low tax country. Ireland lowered their corporate tax rate when they were in a recession and European and American businesses moved their headquarters there to save on taxes. Revitalized the Irish economy.

Another good point I forgot about, thanks

R

MOST will pass it thru to the consumer, the CEOS will benefit (as past events have shown)and I agree with,FRED.
FORD IS MOVING THEIR PRODUCTION TO MEXICO*after promising US expansion....the loopholes NEED changing/closed.

homeagain wrote: MOST will pass it thru to the consumer, the CEOS will benefit (as past events have shown)and I agree with,FRED..

I agree with you both, that's why I won't feel all warm and fuzzy about making corporations "pay their fair share"... because it will be me and you paying for that tax increase, not the corporations who have to compete globally in many cases. There are Democrats that want to raise the tax even higher, which is incredibly stupid if they're trying to help the poor and middle class.

KISS......keep it simple stupid, CHANGE the loopholes so they DO pay fairshare.

homeagain wrote: KISS......keep it simple stupid, CHANGE the loopholes so they DO pay fairshare.

Please elaborate on how the government could make the corporations pay more tax without causing them to raise prices or reduce their labor forces. It's fine to take away loopholes, but removing those obviously increases costs, which again get passed on to consumers. It's a global economy and if you think making our companies less competitive through higher taxation will be a benefit to Americans, I just don't think you understand how the global economy works.