• There is a lot of talk today about raising corporate taxes and giving the middle class a tax break. I argue that corporations really don't pay taxes. Let's take a look at an example:

    Lets say a product has a cost of $5 to manufacturer. We need $4 profit on each unit sold to achieve our after tax profit numbers. Most corporations pay 43% taxes, so our tax on $4 is ($4 x 43%) or $1.72 tax. So we sell our product for $5 + $4 + $1.72 = $10.72 gross cost of our product to the distributor.

    The distributor adds a 40% markup on the product plus the approximate $1.72 in taxes. The retailer adds their 40% to 60% markup including the approximate $1.72 in taxes. So the MSRP is $29.95

    When I pay the $29.95 for the product, I pay a 7% sales tax on the product. Or about $2.10. So the purchase price has between $5 and $6 hidden taxes built into it and $2.10 that I see on the receipt.

    Why is it so hard to see that in reality corporations do not pay taxes? They pass it along to us in the form of hidden costs in the products we purchase.

    Obama wants to raise corporate taxes because he does not want to face the mob of consumers who don't understand this concept. Most people are like, "yeah stick it to the man!!!", but what they don't realize is that the tax is going to come out of their pocket in the form of hidden taxes. Why is this so hard to grasp?


  • So the people that consume a lot pay more in taxes. Those who make more, spend more money on goods and pay more in taxes. Sounds all good to me.

    If you want to complain about inflation all I can say is that is the price we must pay for the republican out of control deficits.


  • corp. regulation and fair taxation is whats needed. trickle down economics does not work. we"ve had many years to come to this conclusion.the tax breaks the corps. get is not passed down to the consumer or the common workers. gee,I cant remember the last time I got a 500 million dollar bonus. you need to get real with your theology.


  • It depends on their legal team.


  • See my answer to your exact same question yesterday.

    summary: Corporations are tax collectors, get paid for their service to the government, and pass your money on, less their fees.

    ANYONE WHO BELIEVES CORPORATIONS OR ANY OTHER ARTIFICIAL ENTITY (that means business for you folks in San Fran) IS STUPID BEYOND BELIEF!


  • No

    Not Fox News

    nor

    Exxon







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