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The Boston Globe and Amtrak Long Distance

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[quote user="henry6"] But if a tax is determined as a percentage of income or price of product, then the higher the income or cost of product means the higher the tax figure  Thus increasing price of product to cover cost of tax is self defeating!  Or am I missing something? [/quote] Whether a business tax can be passed on to the consumer in the price of the goods and services depends on the elasticity of the demand/price curve.  Most business organizations, of which a corporation is just one form, first attempt to pass their tax burden on to their customers.  If the market is highly competitive, they may not be able to pass some or all of the tax on to their customers, in which case some or all of it may be passed through to the shareholders or as some studies suggest, to labor.   Frankly, in previous posts, I have outlined in general terms the features of corporate taxation and the economics of taxation.  Clearly, doing so was a mistake.  Many of the people who post to this or other threads don't understand either.   How corporate taxes function is not political.  Deciding who pays the taxes, at what rates, and on what basis, is a political decision.  I have never dealt with this issue.  I have simply tried to point out, when the issues is raised by someone else, that corporations don't pay taxes.
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