Posted on 12/18/2005 4:46:00 PM PST by FairOpinion
YES! 83% (8832 votes) A consumption tax would be great for the American economy. Do away with complicated income taxes!
NO! 17% (1761) A consumption tax would not be fair for low-income households. Keep the current income tax system!
We'll send your vote to your congressional representative and senators.
Right. I will just stick with the experts' theories of price formation. Little wonder that microeconomics is avoided so much, it is tough sledding.
INcome taxes are calulated upon residuals, profits. That is a simple and unavoidable fact. It is not part of the pricing calculation according to everyone who has studied this.
Archer's survey is less than convincing. Let's see multi-millionaire CEOs favor no income tax what a shock what next you'll discover the sky is blue?
Please refrain from lying about my motivation in discussing this dead issue. When fanatics cannot answer simple question they attack the questioner.
Not all companies even pay income taxes. Corporate income taxes are a tiny portion of total taxes hence the claims of their price impact is wildly overblown.
Without accurate projections for sales there is no chance of an accurate forecast for income taxes. Other taxes can be fairly accurately forecast and are included in costs. Income taxes are not an expense and have no bearing on the production decisions. If they are 90% the profit-maximizing production level would be the same as if they were 10%.
Then there are always the decisions of when to expense certain deductions and thereby reduce income taxes. These often cannot even be made until the results for the year are known.
Business income taxes main impact is on capital formation rather than prices.
IMO he's got a reason to reject tax reform that he's not sharing.
You have not shown me where income taxes are a cost of production which has been my entire point. Tax returns allow deduction of costs of production not income taxes.
Who has claimed companies don't make provisions for paying taxes and report on those provisions?
Are you telling me that business income in the US is not taxed at 38%?
Or that it is strange that companies want to keep as much of their profit as possible? Or will take advantage of schemes to lower their taxes? Gee what a shock.
Either income taxes are a cost of production or they are not. I say they are not.
This was an extreme example, of course, but it would not mean that companies would become unprofitable. They just would not be able to keep as much of their profit but would still be profitable.
Our rate were at that level for some incomes but the economy still lead the world.
What do you think that explained that was not clear?
BWAHAHAHAHAH!
You can claim income taxes are pumpkin seeds too! It doesn't matter what you call income taxes, they are considered when pricing - and must be paid before determining net return. The only indefinite income stream with which expenses may be paid is sales revenues. Anticipated income tax costs, payroll tax costs, tax compliance costs, and every expense a business has are considered in pricing - even office supplies expense- even though you don't know the annual total until after the year is over- business still plans to pay them!
Nobody cares what category a textbook places them into - they are considered when pricing.
You're backpeddling pretty swiftly into an unimportant, unrelated detail. You previously said that income taxes have no effect on decisions wrt pricing a product. Not saying that anymore, eh?
Behind the back slander and misrepresentation of motive are not likely to win many advocates either.
Prices are determined by supply and demand not by income taxes.
I have neither backpedalled nor changed my comments.
Perhaps not with the IRS employees, but H&R Block has stated it would be fine with them to not have the income tax as they could concentrate on their more profitable consulting business.
And everyone above the rich level should get the opposite.
No, equilibrium price is determined by supply and demand. A seller may choose to sell above or below equilibrium price. One of the factors in making the decision of where to sell (above, below, or even with equilibrium) is anticipated taxes.
Well, what do you call it when you swear up and down that "income taxes are not considered in pricing" - then you change to say, "well, uhmmm... income taxes are not a factor of production" - which was never in question anyway? ROTFLMAO.
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