If corporate taxes were eliminated tomorrow, would you offer your service for the same price? Would all of the people offering the same service keep their price the same?
If I was competing for customers, I would surely drop my price if the corporate tax went away.
Say you charged $150.00 for your service and I now charge $100.00 for the same service. Why can the customer get a better deal from me? Because the tax imposed by the the government has gone away.
If the corporate tax doubled tomorrow, how high would you have to raise the price for the service you offered to continue making money?
Doesn’t the consumer of your service or product end up paying the corporate tax though inflated costs for products and services?
Yes, but it's not going to completely offset the reduction in the tax unless the corporation operates in a perfectly competitive product market, which most corporations don't.
In reality, corporations generally enjoy some competitive advantage/barries to entry in their products of specialization, in which case they will not be forced to pass on all the savings from a corporate tax reduction to their customers, and their shareholders will emjoy a windfall. The size of this windfall will depend on the elasticity of demand and the degree of competitive advantage the corporation enjoys.
listenhillary, try running a Commercial Mechanical Contracting business for one year in this economy. I deal with TARP funds, VA, Disability Act legislation, private funding, Davis Bacon Act, you name it!
You don’t know what you’re talking about. Eco 101 doesn’t apply. Politics, locally, State and otherwise does. You’d sink in a heartbeat!
This thread is dead to me.