Companies who move offshore to save federal taxes still get federal contracts

New Jersey Online ^ | 5/27/03 | The Associated Press

[DugwayDuke]

"The only reason Government grants investors limited personal liability in the formation of business enterprise is to promote economic development that is beneficial to society. When corporate activity no longer serves that purpose, there is no longer any justification for Government to extend that privilege."

Some times, you sound just like a democrat. Usually, democrats make these claims right after proposing new regulations and taxation. This argument says that corporations are societies slaves, existing only to further the goals of government. Corporations exist to further the goals of individuals.

[muir_redwoods]

They're aren't tax evaders, they're tax avoiders. If it's inside the rules, it's legal. And, in my view, commendable.

[muir_redwoods]

All costs are passed along to the customer. The customer is where all of the money comes from.

[weaponeer]

All costs are passed along to the customer. The customer is where all of the money comes from.

Not exactly. Costs cannot ALWAYS be passed to the consumer. Sometimes the consumer decides not to buy. Everyone (except Willie, he understands marginal propensity to consume) seems to think that the seller SETS the price based on his costs and a fair profit. Don't they wish! Prices are actually set by the MARKET. If there is sufficient competition, substitutes, lack of demand (the ol' marginal propensity, again) the seller may not even make back his costs. That's why they sometimes post losses.

Come on guys, this is basic economics, not rocket science. Even an engineer can fathom this level of economics.

[muir_redwoods]

It may be too basic because, once initial investment is allowed for (and any additional money put into the business), the customer is the only source of revenue. Whether or not this covers the costs is irrelevant. All revenue comes from the customer and all costs are passed along in the form of the "cost of production". COP is a basis for price but you are correct in that only the market sets the final price. The seller may choose to withdraw his product from the market if he cannot get a sufficient price but once a satisfactory deal is struck,it is the customer who covers all costs, including taxes,