and would prices drop across the board if they didn't have to pay?
the basis of asking this question is that Republicans say that business pass it on... so should we just cut it out altogether and raise the person income tax to make up for it?
2007-01-19 15:40:59 · 17 answers · asked by Anonymous in Politics & Government ➔ Other - Politics & Government
I dont think so but of corse they do...
2007-01-19 15:48:35 · answer #1 · answered by Anonymous · 0⤊ 1⤋
It depends on what on what kind of taxes. A retail company, for example, paying sales tax is a win-win situtaion because the company recieves that money when customers make a purchase. The company can then earn interest on the extra income until the end of the month when they have to pay that original tax amount back.
If you mean taxes like property, payroll, the air you breathe, etc however, those appear to come straight out of the bottom line, leaving companies forced to find other ways to increase their margin, such as raising prices. Somebody has to pay for public schools, highways, ambulances and all that jazz though.
So in this scenario, yes prices on consumer goods could potentially drop, but the consumer will pay the difference somewhere else, most likely in taxes. It's a very sensitive balancing act.
2007-01-19 15:55:25 · answer #2 · answered by Kflo 2 · 1⤊ 0⤋
They do pay taxes, but not like you think.
Any tax on a business is consider a cost of business. The cost of doing business is passed onto the price of their service or goods. They do not pay taxes. They collect them for the government. The people that own the company pay personal income tax. They also generate tax revenue for the government by supplying their employees and suppliers a wage, that is also taxed. They also match the employees contribution to Social Security and Medicare, which is also projected into the price of their goods or services.
2007-01-19 15:54:41 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I would like the answer how a business could pay taxes and not pass it on the the customer.
Do some people think there is some back room with money that came from no where to pay taxes?? heck if i had a room like that they would not have to be a business they could just go in to that room and buy there own stiff.
2007-01-19 15:51:59 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I am an extreme Liberal, and I have been talking up the idea of eliminating usiness taxes for years.
A business is just an endeavour that some people have gotten together to do something to make money.
I would replace business taxes with extremely high income taxes on high earners. Under Eisenhower, the top rate was 91%, and that period was the Golden Age of post war growth in America.
Businesses always say they can't be taxed or they won't be able to grow. Well. now they will. If they simply reduce exec salaries they can put that money into capital expansion. If they don't, it's tax time baby.
The income tax is the only tax that can't be passed on.
2007-01-19 17:01:28 · answer #5 · answered by bettysdad 5 · 0⤊ 2⤋
All taxes are taxes on people. There is no such thing as a business or corporation tax. If you think about it, that money is coming from some person, not a business. Maybe it comes from me or you in the guise of increased prices for goods and services. It could also be coming from the owners of the company resulting in less profits. Or it could be coming from the workers in the form of lower wages. The "business" or "company" that is being taxed is not a solo entity, that is harmed in any way by increased corporate taxes. It is a collection of people. Those workers, owners and customers are the ones who feel the brunt of the tax.
2007-01-19 15:47:54 · answer #6 · answered by qmstr725 3 · 2⤊ 1⤋
yeah, good old trickle down economics... didn't work in the 50's and doesn't work now. If businesses were able to avoid taxes, cities, counties and states would feel a pretty harsh economic impact. While prices may be a little lower, it wouldn't matter because a lot more people would be out of work and couldn't buy things anyway.
2007-01-19 16:03:27 · answer #7 · answered by David L 6 · 0⤊ 0⤋
The republicans are for big oil that makes billions an you pay more taxs than they do,i think a 15% tax on all would solve a lot of things an republicans are dumb *** any way you see what bush started with an now we are in the red
2007-01-19 15:51:46 · answer #8 · answered by bigdogrex 4 · 0⤊ 1⤋
Yes. I doubt they would pass it along. And if they did it would just raise inflation. Besides aren't they taxed based on profits? If personal income tax were raised the added strain on consumers would make less disposable income which hurts business and the economey in general.
2007-01-19 15:49:34 · answer #9 · answered by angelbabydoll82 2 · 0⤊ 1⤋
It would probably be he best course of action because as you said business' does not pay taxes, merely for simplicities sake. I do no believe this is a Republican idea, I believe it is universal except among the most die-hard socialist.
2007-01-19 16:15:03 · answer #10 · answered by Anonymous · 0⤊ 0⤋
Prices wouldn't drop across the board - the extra income would just go to the pockets of the CEOs and board of the company.
2007-01-19 15:50:21 · answer #11 · answered by dardekkis 4 · 3⤊ 1⤋