That's pretty silly. How about this - we don't tax corporations at all. The reason is obvious - it really isn't theoretically possible to tax companies anyway; they just pass this on as a cost of doing business to consumers. Only people can be taxed, in essence, anyway. So don't have corporate taxes, and goods can be cheaper because the costs of compliance completely evaporate. Further, corporate decision making can take out of the equation tax implications of behaviors and they can do what's best for the business or for its employees and neither has to compete with Unc. Sam for strategy considerations.
Goods would not become cheaper -- instead, profit margins would become fatter. There is no incentive for a corporation to pass a reduction (or elimination) of its tax burden to its customers. Trickle-down economics were pretty much debunked the last few times they came around.
Majick - all it takes is another company to undercut their price on the same product; that's competition, and it pretty much works every time it "comes around".
Plus, even if profit margins become fatter, that helps stock prices which help mom and pop. So trickle-down always works; it only gets a bad rap in some circles - the same circles who get fixated on executive compensation and don't see the bigger picture.
"all it takes is another company to undercut their price on the same product"
But what about monopolies or price fixing (cds)?
Trickle-down economics is based in the premise that people involved in big business are inherently fair, when of course that's far from the truth. Altruism is anathema to commerce. Sure it works in theory, but when you add humans to the equation it fails in practice. Of course, I'm no economist...
that helps stock prices which help mom and pop.
Ha! That's very funny. Higher wages and cheaper products help more "moms and pops" than fat profits and insane executive payments.
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This thread is closed to new comments. Thanks to everyone who responded.
