Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.1 6/24/83; site loral.UUCP Path: utzoo!watmath!clyde!bonnie!akgua!sdcsvax!sdcc6!loral!simard From: simard@loral.UUCP (Ray Simard) Newsgroups: net.flame Subject: Re: Corporate Taxes Message-ID: <545@loral.UUCP> Date: Fri, 12-Oct-84 16:15:04 EDT Article-I.D.: loral.545 Posted: Fri Oct 12 16:15:04 1984 Date-Received: Sun, 14-Oct-84 07:10:47 EDT References: <947@trwrba.UUCP> <2274@sdcc3.UUCP> <> Reply-To: simard@loral.UUCP (Ray Simard) Organization: Loral Instrumentation, San Diego, CA Lines: 70 Summary: [] > If corporations were able to recoup the entire effect of tax hikes > by raising prices, they would have no aversion to tax hikes -- which > manifestly isn't the case. The point of the discussion is that the ultimate source of corporate tax revenue is the customers of that corporation. True in an "all else equal" scenario, a corporation cannot merely tack on a dollar-for-dollar increase in the prices of its goods without impacting sales (that's simple supply and demand). However, who bears the burden of that loss? The customers have to pay more for the product, the stockholders lose dividends and appreciation, and jobs are lost for employees of the corporation due to reduced volume. (And lest we get into blathering about those "rich stockholders who can afford to lose a little", let's recall that the largest investors are institutions such as mutual funds, etc, who manage such things as retirement plans, insurance benefits, and similar - all which help the bulk of working Americans). > ...fewer profits are hence channelled from the pockets of the consu- > mer into those of the people (not, fascist calumny to the contrary > notwithstanding, average people) who own the corporations. Just who do YOU think owns the corporations? I know the image of wealthy snobs ("Well, deah, don't you think it's simply DREADFUL how we have to pay taxes like the lower classes? I was hoping for another Mercedes this year") owning the bulk of equity in business is very dear, but it is also false. Do you follow the stock market or read business publications? If you do, you will find the real drivers are INSTITUTIONS - which handle mostly the kinds of things I mentioned before. Did you know the AVERAGE stock portfolio is less than $10,000? That is the price of a midsize car these days. > Some of it (the profit) is thus channelled into government. ...and channeled out of MY pocket. I fail to appreciate that, beyond the extent that I can see that money going to benefit the security and prosperity of the general citizenry. > government, so that much of the taxes which might otherwise be spent > in a manner beneficial to the public go right back into the coffers > of defense contractors. I love this. Business owns and operates the government. That's why we have the most ridiculous tax ever imagined, the so-called "windfall-profits" tax. I'm sure the oil industry lobbied long and hard to get that one passed. We also have not eliminated the corporate income tax. I suppose that's another example of government in business's pocket. By the way, I deplore $7000 coffeepots as much as anyone. But these hor- ror stories are examples of just why I want to reduce government and its spending. This can happen because nobody is accountable. Someone gets a blank check and in typical bureaucratic manner, loses all sense of where it came from. The more of what my labors earn I get to keep, the more of that wealth I will spend in a responsible, accountable manner. > Ain't life wonderful? To the extent that you choose it to be, although that's getting into net.philosophy. -- [ I am not a stranger, but a friend you haven't met yet ] Ray Simard Loral Instrumentation, San Diego {ucbvax, ittvax!dcdwest}!sdcsvax!sdcc6!loral!simard