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To: E. Pluribus Unum
Except for GE. It's OK when GE pays zero percent by taking advantage of "loopholes."

Actually, in some cases the consumer pays the entire tax anyway, depending on the elasticity of demand. The more ineleastic the demand, the greater the percent of the tax that is paid by the consumer. For example, if the feds tacked a $50 tax on each heart operation, there would probably be no change in the number of people who have heart operations and the consumer would have the entire tax passed onto them.

People have to get away from the idea that the gov't "makes" money through taxes. No, the gov't takes money away from someone and gives it to someone else...often themselves. The valid reasons for gov't spending are 1) the policing of property rights (e.g., a legal system, a standing military) and 2) provision of social overhead capital (e.g., public roads). Now you tell me where free cell phones comes in, other than to get yourself reelected.

50 posted on 07/26/2014 12:52:17 PM PDT by econjack (I'm not bossy...I just know what you should be doing.)
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To: econjack
Actually, in some cases the consumer pays the entire tax anyway, depending on the elasticity of demand.

The tax is ALWAYS paid by the consumer.

That's where the money comes from.

51 posted on 07/26/2014 1:15:32 PM PDT by E. Pluribus Unum ("The man who damns money obtained it dishonorably; the man who respects it earned it." --Ayn Rand)
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To: econjack
Actually, in some cases the consumer pays the entire tax anyway, depending on the elasticity of demand.

Actually, I'm all for zero taxes on corporations. It's double-taxation.

Thieves, however, just see "gibsmedat" whenever they see piles of other peoples' money.

52 posted on 07/26/2014 1:16:44 PM PDT by E. Pluribus Unum ("The man who damns money obtained it dishonorably; the man who respects it earned it." --Ayn Rand)
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