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To: bilhosty
It took you about 275 words to simply say that corporations sometimes pay taxes that are passed on to the consumer and sometimes they do not pay taxes.
So if corporations do not pay taxes the price for their product is based on the expense to produce the product plus profit. If corporations do pay taxes then, as I mentioned previously, the price for the product will include the tax with other costs plus profit. The consumer ultimately pays the tax.
If you want to learn more please consult an accountant.
28 posted on 03/27/2011 3:42:25 PM PDT by orinoco
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To: orinoco
Do they really sit down and say, oh my taxes just went up so I will raise my cost of my product. It is not just like that. Again, some are at competitive disadvantages or the market just may not bear a raise in prices. If a company could just go out and raise prices higher they would of done that in the first place without a tax hike. No, it is more complex than that. Income taxes are paid based on profit and will flux any ways. When taxes go down do prices come down? No they generally do not unless there are competitive pressures. And for the same reason prices do not automatically go up if taxes do.
29 posted on 03/27/2011 6:04:34 PM PDT by bilhosty (Don' t tax people tax newsprint)
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To: orinoco

“The consumer ultimately pays the tax.

Caterpillar says it is moving out of the state of Illinois due to coporate income taxes. I guess they are just sick of collecting oour taxes fromus, aren’t tney?


32 posted on 03/29/2011 8:30:49 AM PDT by bilhosty (Don' t tax people tax newsprint)
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