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To: Your Nightmare
That you forgot that the corporate tax could be borne by investor through a lower return.

Hmmm, just for the sake of argument, I'll say you are wrong. Investors don't bear corporate taxation through a lower return. All corporate tax and compliance costs show up in product prices.

Corporate taxation has no marginal impact on the rate of return demanded by investors in exchange for investment capital, other than increasing the required revenue generation of corporations to cover the tax burden while providing the required return on capital.
408 posted on 02/22/2006 8:37:55 AM PST by BubbaTheRocketScientist
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To: BubbaTheRocketScientist
Hmmm, just for the sake of argument, I'll say you are wrong. Investors don't bear corporate taxation through a lower return.
I didn't say they did. I said they could.


All corporate tax and compliance costs show up in product prices.
Maybe you could tell me how much corporate tax and compliance costs show up in the price of GM's cars. They lost $8.6 billion last year. Why didn't they just raise their price to cover all their costs, including compliance costs and all the tax costs of all of their suppliers? Why didn't they "pass all of it on to the consumer"? Did they just forget?
409 posted on 02/22/2006 8:52:46 AM PST by Your Nightmare
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