Why are democrats so stupid as to think high corporate taxes are paid by the corporation instead of the consumer?
If you tax a corporation they're not going to say "oh well, I guess I have to lower profits" they'll get their profits back by raising prices on the consumer!
- I'm That MexicanLv 51 month agoBest Answer
BINGO! President Reagan said it the best. The Government uses corporations to collect taxes.
- JamesLv 71 month ago
- StephenWeinsteinLv 71 month ago
If they raise prices, then they do lower profits, because the consumer buys less. If they want to keep as much profit as possible, then they keep the prices where they are.
- NeengefanLv 61 month ago
This is what Trump did! His Tariffs already cost consumers more. Why don't you start with what's going on right now!
- How do you think about the answers? You can sign in to vote the answer.
- Blocking BackLv 71 month ago
No idea. But they say tariffs are passed on to consumers, so they almost get it.
- Spock (rhp)Lv 71 month ago
or buy lowering wages, or by leaving the country that imposes the high taxes
- zman492Lv 71 month ago
Corporations determine the price for a product by determining what price will produce the most profit. They know that if they raise the price too much they will reduce sales enough that they will lower their profits.
Look at soybean sales to China by American farmers. China put tariffs of soybeans imported from America. Tariffs are taxes, so they raised taxes. American farmers now sell soybeans for much less than they did before the tariffs.
As an American I can buy a car produced by an American company or a foreign company. Most Americans consider the price when considering which car to buy.
If General Motors could charge ten percent more for their cars without reducing sales don't you think they would already have raised prices? Do you really believe when buying a car the average American would care why General Motors raised prices?
In a competitive market a corporation must price their products competitively. Most markets in America are competitive.
When President Trump cut corporate taxes very few companies reduced their prices. If corporate taxes are raised some companies, but certainly not all, would raise prices.
- oikoσLv 71 month ago
Probably for the same reason that Republicans think that tariffs are paid for by the exporting country.
- tribeca_belleLv 71 month ago
The corporate tax cuts went mostly to buying back shares and executive bonuses. They didn't lower prices. The rich got richer. Consumers didn't benefit. Remember that consumers won't buy if prices are too high. Also, there is always competition re prices.
- 1 month ago
Right, but raise the prices too much and people go elsewhere. There is a limit to how high you can raise prices before you run yourself out of business.