Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10 beta 3/9/83; site uf-csg.UUCP Path: utzoo!watmath!clyde!bonnie!akgua!uf-csv!uf-csg!mark From: mark@uf-csg.UUCP (mark fishman [fac]) Newsgroups: net.flame Subject: Re: Corporate Taxes Message-ID: <201@uf-csg.UUCP> Date: Sun, 30-Sep-84 15:13:58 EDT Article-I.D.: uf-csg.201 Posted: Sun Sep 30 15:13:58 1984 Date-Received: Sun, 7-Oct-84 09:04:21 EDT References: <947@trwrba.UUCP>, <2274@sdcc3.UUCP> Organization: Univ of Fla, Computer and Information Science Lines: 22 <> No. You don't understand economics at all. 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. For goods of some degree of "elastoicity of demand," there is only a finite extent to which prices can be raised before consumers start to buy less of them. Only *some* of the price hike can thus be passed on, consistent with the maintenance of maximized profits under the new prevailing system, and fewer proits are hence channelled from the pockets of the consumer into those of the people (not, fascist calumny to the contrary notwithstanding, average people) who own the corporations. Some of it (the profit) is thus channelled into government. fortunately for the corporations, though, they are well able to buy 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. Ain't life wonderful?