8/18/2006

Friday Fun: Capitalist Trivia

From 1950-2000 Corporations averaged 17 percent of the total tax contribution to the government.

Now, it is about 7 percent. I'll give everyone until Monday to come up with the number one reason why this is down...with the biggest example in the last decade.

No asking OTBL members! That's cheating.

14 comments:

Cato said...

All taxes paid by corporations are paid by their customers anyway.

I am not an OBTL member but I won't answer yet.

Josh said...

Correct you are cato... and I have comment on that but I'll wait.

Josh said...

Here's another quick hint... Its a similar mindset to the whole Mikahil scheme..

Ben Franklin said...

Common sense is why corporate taxes are down. As Cato pointed out, corporations do not really pay taxes, they just pass that cost on in the price of their products.

jpn said...

What gets passed down to prices depends on elasticity. Just because corporate taxes go up doesn't mean prices go up.

So individuals in Wisconsin should pay more taxes to pay for roads that haul parts in from foreign countries to build build Harley-Davidson motorcycles that get sold all over the world.

Is the corporation's only job to make a profit?

Josh said...

Sorry Ben. You're missing it.

Spew that over at OTBL though.

Anyway Jim is getting warm.

jpn said...

I would say it's corporate welfare. Corporatations and their executives have the financial means to great influence the political machinery. Pumping contributions in individual campaigns and PACs pays off big time.

Josh said...

Nope.

Here's a hint:

"in-out"

Josh said...
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Josh said...
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Josh said...

Here's your answer

Anonymous said...

Good point josh
Corporate commercial and industrial taxes are down. In Wisconsin the greater burden has been shifted to residential property owners. Just look at the tax revenue for Hudson as an example. If you trak valuations versus tax revenues back 15 years (and I have), you would be shocked given the growth (industrailly and commercially) in Hudson. All this free market talk is just hot air. Corporations have been receiving handouts and tax breaks for years. That means real property owners (residential) are left with the burden to pick up the cost of corporate welfare.
If I am not a customer of a given corporation, yet I am a property owner, it seems that I am held hostage by political and corporate partisanship.

Cato said...

Three things --

One, I am opposed to any type of welfare. Welfare for the "poor" of this country or welfare for the farmers or welfare for the corporations. It all ought end. But it isn't going to without a drastic change in leadership in this country...

Secondly, my point is still valid. Whether or not corporations are evading taxes does not really matter. In the end individuals still pay the taxes one way or another. Corporations are not going to cut into their profit to pay for taxes. They just raise the price of whatever they are peddling. (Trickle down, if you will... please read this George F. Will article...

http://tinyurl.com/lndrv )

And finally, property taxes are (mainly) for schools. Why should corporations pay for schools, conceding for sake of the argument that people should pay (regardless of if they have children of school age)?

Josh said...

"Secondly, my point is still valid. Whether or not corporations are evading taxes does not really matter. In the end individuals still pay the taxes one way or another. Corporations are not going to cut into their profit to pay for taxes. They just raise the price of whatever they are peddling."

WHAT? that makes NO sense...

#1- They'll increase the prices if they have to pay their LEGALLY OBLIGATED TAXES? Have you ever heard of this thing called COMPETITION? Thier competitors are charging the SAME price they are and NOT evading taxes (at least not anywhere near that extreme) and charging the VERY SAME PRICE for the product. They make less of a profit, but they're much more legit, and trust me their profits are still fine. If your greedy friends increase their prices to make more profit they will lose customers to their competitors.

#2- Your argument that the invidual will pickup the cost of the taxes was defeated in that last point, but supposing for a second that the prices would go up (which is false), the fact reamins that their CUSTOMERS would pay for the extra increase, not the entire American Population. Americans are FORCED to pay their taxes. They are not FORCED to purchase from your greedy profit hungry, tax-evading friends.