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From: geoff@desint.UUCP (Geoff Kuenning)
Newsgroups: net.legal
Subject: Re: Corporate income tax
Message-ID: <352@desint.UUCP>
Date: Sun, 10-Mar-85 17:22:20 EST
Article-I.D.: desint.352
Posted: Sun Mar 10 17:22:20 1985
Date-Received: Wed, 13-Mar-85 00:05:03 EST
References: <683@whuxlm.UUCP> <461@lsuc.UUCP> <429@terak.UUCP>
Organization: [consultant], Manhattan Beach, CA
Lines: 18

>> By the way, there's been a lot of criticism of corporate tax rates
>> in this group.  What good does taxing corporations do?  They pay
>> their taxes out of income, you know, which comes from the consumers
>> who buy their products.  Individuals pay all the taxes in the end.
>
>While the above statement is absolutely correct...

Doesn't anybody study economics any more?  A basic principle is that
business do *not* necessarily pass their costs on to the consumer.  Some
businesses can pass on more than their costs.  But most businesses, faced
with a 5% cost increase, find themselves only able to raise prices 4% without
losing money due to decreased demand.  Believe me, as a businessman I *know*.
-- 

	Geoff Kuenning
	Unix Consultant
	(213) 545-4413
	...!ihnp4!trwrb!desint!geoff