The vast oversimplification

Post #300,713 by beepster 12/5/08 10:52:31 AM Reply	The vast oversimplification Consumption generates all revenue to corporations and government siphons from this for its "revenue". Reducing corp profits nets lower tax revenue from corp side that will be made up elsewhere (read consumers). It may not impact the price of the specific good in the short term and thus appear that its not being passed on...but you need to go back to premise 1...it all starts with consumption, which all starts with the consumer...which all starts with you or I. I will choose a path that's clear. I will choose freewill.
Post #300,724 by Another Scott 12/5/08 8:21:49 PM Reply	That's a pretty broad definition of "consumption", isn't it? Providing a service is satisfying a "consumption"? I've not heard the term used that way. Be that as it may... Consumption generates all revenue to corporations and government siphons from this for its "revenue". Government provides a variety of services to corporations related to: 1) Security (police, fire) 2) A legal system and a framework of laws (courts, access to them, rules, property rights) 3) Utilities (though publicly-granted monopolies to water, electricity, gas) 4) Roads and a transportation system 5) An educated workforce 6) Etc. Why should a corporation not pay something for these services that are made possible by government - the things that make a modern corporation possible? Bill Gates and Henry Ford didn't create the world in 7 days. Reducing corp profits nets lower tax revenue from corp side that will be made up elsewhere (read consumers). As mentioned above, corporate income taxes are based on profits which are defined as (revenue - expenses). So the case can be made that taxes on profits can't increase expenses (since it's a separate category that's already counted). So, taxing profits won't reduce corporate profits, will it? Cheers, Scott.
Post #300,727 by beepster 12/6/08 5:17:41 AM 12/6/08 5:31:57 AM Reply	Depends where the tax is applied. And a tax on profits decreases net profit, not gross. A change in income/profit tax will take longer to work through the system..but will eventually end up in price. So the short term discussion will be in your favor, they won't immediately raise prices to counter. There's no reason why govt shouldn't expect corporations to pay for services...but they pay for them with customer money. Companies don't make money, they make goods and services that people or other companies pay for. I'm not a proponent of eliminating corp income taxes as some are. I do think they can and should be lowered to improve the value equation of domestic investment. I will choose a path that's clear. I will choose freewill. Edited by beepster Dec. 6, 2008, 05:31:57 AM EST Expand All History

Welcome to IWETHEY!