TexasTiger 13,029 Posted June 11, 2008 Share Posted June 11, 2008 McCain's top economic adviser, Doug Holtz-Eakin, blithely supposes that cuts in defense spending could make up for reducing the corporate tax rate from 35% to 25% and the subsequent shrinkage in federal revenues. Get that? The national security candidate wants to cut spending on our national security. Wait until the generals and the admirals hear that. http://www.forbes.com/home/2008/06/06/obam...tml?partner=rcp Link to comment Share on other sites More sharing options...
TitanTiger 20,511 Posted June 11, 2008 Share Posted June 11, 2008 I have a question about taxing corporations. How is that not just an indirect tax on their customers? Don't you think that any corporation that pays a certain amount in taxes simply builds that cost into the price they charge for their product or service so that in the end, it's me and you that pay for any tax increase? Link to comment Share on other sites More sharing options...
WarDamn 0 Posted June 11, 2008 Share Posted June 11, 2008 I have a question about taxing corporations. How is that not just an indirect tax on their customers? Don't you think that any corporation that pays a certain amount in taxes simply builds that cost into the price they charge for their product or service so that in the end, it's me and you that pay for any tax increase? You are exatly correct in your thinking. It is very similar to the inverse effects of forcing an increase in the minimum wage through gov't mandate. Instead of everyone at the plant who was making wage "A" now making the higher wage "B", the company offsets costs by laying off workers -leaving the lucky ones with a new higher wage rate and the rest completely wageless. Whats better, everyone making some money or some making none? The market always works best when left ALONE. If only we could get that through our thick skulls sometime... Link to comment Share on other sites More sharing options...
TexasTiger 13,029 Posted June 11, 2008 Author Share Posted June 11, 2008 I have a question about taxing corporations. How is that not just an indirect tax on their customers? Don't you think that any corporation that pays a certain amount in taxes simply builds that cost into the price they charge for their product or service so that in the end, it's me and you that pay for any tax increase? To an extent, but that assumes that any cut in taxes is passed on in savings to the customer which doesn't happen either. Most corporations take the profits the market will bear-- cut the gas tax this summer and see how much gets passed down to the customer. And all costs aren't necessarily passed on either-- think about how long Wendy's has kept their 99 cent value menu despite years of inflation. Link to comment Share on other sites More sharing options...
CCTAU 3,350 Posted June 11, 2008 Share Posted June 11, 2008 I have a question about taxing corporations. How is that not just an indirect tax on their customers? Don't you think that any corporation that pays a certain amount in taxes simply builds that cost into the price they charge for their product or service so that in the end, it's me and you that pay for any tax increase? To an extent, but that assumes that any cut in taxes is passed on in savings to the customer which doesn't happen either. Most corporations take the profits the market will bear-- cut the gas tax this summer and see how much gets passed down to the customer. And all costs aren't necessarily passed on either-- think about how long Wendy's has kept their 99 cent value menu despite years of inflation. UH. The good stuff is $1.19 now. Some sort of spending cuts will need to be made. I'm sure he said he is ONLY cutting defense spending. From his past stance on the tax cuts and spending, I have to conclude that he wants to cut spending across the board. Congress, both sides, are cringing at the thought. Hardly anyone in congress today has EVER heard of a spending cut. Link to comment Share on other sites More sharing options...
OldNewby 27 Posted June 11, 2008 Share Posted June 11, 2008 Hardly anyone in congress today has EVER heard of a spending cut. No news here, but spending cuts are for the average American. We don't possess a magic check book. When taxes are increased or the price of gasoline goes up …we have to make spending cuts: groceries, clothing, push up the thermostat, make fewer buys at the state store, etc. Link to comment Share on other sites More sharing options...
autiger4life 3 Posted June 11, 2008 Share Posted June 11, 2008 UH. The good stuff is $1.19 now. For one of the few times, I completely agree Some sort of spending cuts will need to be made. I'm sure he said he is ONLY cutting defense spending. From his past stance on the tax cuts and spending, I have to conclude that he wants to cut spending across the board. Congress, both sides, are cringing at the thought. Hardly anyone in congress today has EVER heard of a spending cut. While I agree he probably is planning on cutting everything not just defense, I can only imagine(or look at several different posts) when a democrat mentions cutting defense and the ensuing pile on of them being called soft, scared, not wanting to defend the country, etc. Then when it is a republican a more rational view is taken. This is not really directed at you CCTAU Link to comment Share on other sites More sharing options...
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