Quote:
Originally Posted by rubecube
The market is always going to dictate prices far more than taxation will. It's the reason prices don't go down when taxes do.
Increased volume can also make up for reduced margins. It's not like a lot of these companies are operating on such slim margins that a 2-5% tax hike is going to necessitate a price increase.
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I am not going to get into a giant debate on the internet about tax increases. The post I responded to posited that corporations only pay taxes on profits, so tax increases therefore can't kill corporations. I explained a couple of the reasons why that is simply not true.
The only comment I will make on your post is in reference to the bold. Increased volume isn't a magic switch they can flick. If they could increase volume without reducing prices, they would have already.
Corporations don't pay taxes, they collect them. They are an input cost. Raising that input cost has consequences. Suggesting otherwise is silly.
(I am out. I am not going down the rabbit hole of debating corporate taxes on the internet because, well, I am mortal, and I don't know how many years I have left, and I am not going to spend them all arguing back and forth with snippets about an extremely complex issue)