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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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To: Your Nightmare
Maybe you could tell me how much corporate tax and compliance costs show up in the price of GM's cars.

Depends on the model ;) .

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?

Perhaps they tried, and that's precisely why they lost money. Overpricing = reduced sales = loss for the year. It's called price elasticity of demand.

You also miss the point that corporate tax and compliance costs impact all of the manufacturers in substantially the same way, not just in one particular company. If 20% of the price of a car is tax-related, it doesn't matter if one company loses money while another makes money - the overall price of a car is still 20% attributable to embedded tax-related costs.
410 posted on 02/22/2006 9:00:56 AM PST by BubbaTheRocketScientist
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To: Your Nightmare; BubbaTheRocketScientist
Maybe you could tell me how much corporate tax and compliance costs show up in the price of GM's cars.

Being the accomodating fellow that I am I'll tell you! ALL of those types of costs incured by GM (don't tell me they do not incur such costs simply because the failed to make a profit that year) plus those of every supplier of every component in the supply chain of GM but that's all!

415 posted on 02/22/2006 3:58:26 PM PST by Bigun (IRS sucks @getridof it.com)
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