Question for JPP economic heavyweights

[Damocles]

Ya, so not always.

Its clear, gas prices do not go up penny for penny when they are imposed, almost never.

American "capitalism" is not based on 100% on supply and demand, its based more on what the consumer will tolerate from a large corporation that has dominated the market, thus has very little competition, for decades.

The large Americans corporations have learned to beat such market demands by colluding with the "competition" to create the most profit for all.

Corporations working together against the consumer defeats the cost lowering affect of competition.

Not usually right away, almost all businesses with competition will try to absorb some of the cost, but it is inflationary. The higher the tax the more likely the cost will pass to the consumer. In order to earn the money to pay the tax the business must charge their customer, the cost is always passed to the consumer, every single time, for a corporation there is no other source for their "earnings".

If corporate taxes are higher in the U.S.A. than in other producing nations, the U.S.A. has effectively set a tariff on their own goods and provided a path to a trade deficit.

 

[Teflon Don]

Because you really don't understand the topic, I'll type slowly.

Taxes are paid on PROFITS. You don't 'pass taxes' off to anyone. Right now most corporations are paying an effective tax rate of 10% or less.

Now...trump had chance to bring jobs back to the U.S. but just opted to give all corporations a tax holiday.

What if corporations who do all of their manufacturing in the U.S paid no taxes, and those who didn't pay higher taxes?

Does that give you a tingle in your panties?

I didn't think you would understand it, but that is ok. I have never met a marxist who understood economics.

 

[Althea]

I didn't think you would understand it, but that is ok. I have never met a marxist who understood economics.

LOL. You just proved my point.

 

[Althea]

Not usually right away, almost all businesses with competition will try to absorb some of the cost, but it is inflationary. The higher the tax the more likely the cost will pass to the consumer. In order to earn the money to pay the tax the business must charge their customer, the cost is always passed to the consumer, every single time, for a corporation there is no other source for their "earnings".

If corporate taxes are higher in the U.S.A. than in other producing nations, the U.S.A. has effectively set a tariff on their own goods and provided a path to a trade deficit.

Why does your camp ignore the fact that taxes are only paid on profits? You don't 'earn money to pay taxes'. You pay taxes on money you earn.

Raising prices to pay taxes simply increases taxes.

No?

Wanna pay less taxes? Reduce your net by increasing salaries.

 

[Damocles]

Why does your camp ignore the fact that taxes are only paid on profits? You don't 'earn money to pay taxes'. You pay taxes on money you earn.

Raising prices to pay taxes simply increases taxes.

No?

Why do you ignore the source of the money for profit? And yes, raising prices to offset cost does increase profit, which increases taxes, hence the Truth (capital T truth) that taxation on production is always just another sales tax as all cost of production is paid by the consumer, these costs disproportionately affect the poor and middle classes.

 

[Jarod]

Not usually right away, almost all businesses with competition will try to absorb some of the cost, but it is inflationary. The higher the tax the more likely the cost will pass to the consumer. In order to earn the money to pay the tax the business must charge their customer, the cost is always passed to the consumer, every single time, for a corporation there is no other source for their "earnings".

If corporate taxes are higher in the U.S.A. than in other producing nations, the U.S.A. has effectively set a tariff on their own goods and provided a path to a trade deficit.

Few major businesses in the United States have much true competition.

If it was true Capitalism, you would be correct. Most of our prices are way above the necessary mark to make a huge profit so a small increase to those companies barely makes a difference.

Both tariffs and taxes are inflationary, but not anywhere close to 1 for 1, and more than should be not at all.


My friend invented a new type of hair brush, and started a business with it. At first she was VERY successful, but when the big companies noticed she was quickly put out of business and the new brush that is innovative and better is not being made anymore. American capitalism is different.

 

[ThatOwlWoman]

I hear much criticism about Trumps proposed tariffs on foreign imports. I’ve been hearing constant political ads about how they will raise prices for “working Americans”

Yet, part of Harris’ economic agenda is to increase corporate taxes to “make them pay their fair share”.

So tell me what is the difference between tariffs and increased corporate taxes when we know tha5 corporations will just pass those taxes off to consumers in the form of higher prices

I would love to, even though I'm probably not an "economic heavyweight," whatever that is. However, there's no point. To paraphrase Dorothy Parker: "You can lead a MAGATtard to facts, but you cannot make him think."

 

[Damocles]

Few major businesses in the United States have much true competition.

If it was true Capitalism, you would be correct. Most of our prices are way above the necessary mark to make a huge profit so a small increase to those companies barely makes a difference.

Both tariffs and taxes are inflationary, but not anywhere close to 1 for 1, and more than should be not at all.


My friend invented a new type of hair brush, and started a business with it. At first she was VERY successful, but when the big companies noticed she was quickly put out of business and the new brush that is innovative and better is not being made anymore. American capitalism is different.

Which is why I stated you must incentivize competition.

 

[Jarod]

Which is why I stated you must incentivize competition.

They do not do that, especially, but not limited to, the Conservatives. Its all about promoting big business and monopolies.

America is set up to rig capitalism for MONEY interests.

Its the same even with lawyers.


Then when anyone wants to incentivize competition they scream about government not being "hands off" enough.

 

[Yakuda]

They do not do that, especially, but not limited to, the Conservatives. Its all about promoting big business and monopolies.

America is set up to rig capitalism for MONEY interests.

Its the same even with lawyers.


Then when anyone wants to incentivize competition they scream about government not being "hands off" enough.

Give examples "perry mason".

 

[Jarod]

Give examples "perry mason".

Look at the "incentives" given to any and all Elon Musk companies. He would not be who he is without Big Government help and taxpayer money.

 

[Yakuda]

Look at the "incentives" given to any and all Elon Musk companies. He would not be who he is without Big Government help and taxpayer money.

We can't wait for nasa to do anything they are too busy with dei bullshit.

NASA appoints new leaders to head its commitment to DEI

Promoting diversity, equity, inclusions, and accessibility, NASA appoints a new DEI lead and administrator to manage its commitment to the ‘S’ in ESG

sustainabilitymag.com

Maybe they should actually produce something besides dei hires

 

[Teflon Don]

Few major businesses in the United States have much true competition.

If it was true Capitalism, you would be correct. Most of our prices are way above the necessary mark to make a huge profit so a small increase to those companies barely makes a difference.

Both tariffs and taxes are inflationary, but not anywhere close to 1 for 1, and more than should be not at all.


My friend invented a new type of hair brush, and started a business with it. At first she was VERY successful, but when the big companies noticed she was quickly put out of business and the new brush that is innovative and better is not being made anymore. American capitalism is different.

I dont believe your story. too many holes

 

[Truth Detector]

Conservatives have failed and failed all the way....just look at where we are.

 

[Truth Detector]

I agree. They have decided it's better to be popular than to do the right thing

 

[Truth Detector]

Because you really don't understand the topic, I'll type slowly.

Taxes are paid on PROFITS. You don't 'pass taxes' off to anyone. Right now most corporations are paying an effective tax rate of 10% or less.

Now...trump had chance to bring jobs back to the U.S. but just opted to give all corporations a tax holiday.

What if corporations who do all of their manufacturing in the U.S paid no taxes, and those who didn't pay higher taxes?

Does that give you a tingle in your panties?

Another brainless Kamala voter who knows nothing about running a business or economics.

Taxes are a cost factored into the prices charged to consumers of their goods and services you halfwit.

Another brilliant example of how badly our leftist educational system is failing us.

 

[Truth Detector]

Corporate taxes are simply a cost of production and always pass through to the consumer. It is inflationary in price, a hidden sales tax, and effects the lower and middle class disproportionately.

Simple Translation: Companies collect taxes, they do not actually pay them.

Tariffs are not always a cost of production to every business like taxing corporations is. Tariffs, when used properly, can be used effectively to reduce unfair trade practices, such as CCP subsidizing steel to lower its cost substantially so that no profit can be made by anyone. The consequences of that are businesses closing in the U.S.A. then CCP dropping the subsidy and the cost returns to the consumer, the profit however then goes to the CCP controlled business.

Nailed it.

 

[Althea]

Why do you ignore the source of the money for profit? And yes, raising prices to offset cost does increase profit, which increases taxes, hence the Truth (capital T truth) that taxation on production is always just another sales tax as all cost of production is paid by the consumer, these costs disproportionately affect the poor and middle classes.

That doesn't make any sense. Taxes are not 'cost of production'. Cost of production is (among other things) wages, utilities, and cost of raw material. Taxes are paid after costs of production are subtracted from gross receipts.

Effective tax rate for most corporations is 10% or less after the trump tax giveaway. The lies pushed by trump about highest corporate tax rate in the world did NOT account for loopholes and true effective tax rates. At the time, the average effective corporate tax rate was 16%.



The effective tax rate, which takes into account those tax provisions, often differs significantly from the statutory rate imposed by law. For example, profitable large corporations paid an average effective federal tax rate of 9 percent in 2018, a decrease from 16 percent in 2014.

Six Charts That Show How Low Corporate Tax Revenues Are in the United States Right Now

Compared to historical trends and other advanced economies, corporate tax revenues in the United States are low.

www.pgpf.org

 

[Althea]

Not always. Corporations often have inflated prices to a point their economists have figured will make them the most profit, so in that case, an increase in 'cost of production' does not automatically result in a 1 for 1 cost increase, sometime no increase, just a little less profit for the corporation.

Income taxes are not a cost of production.

 

[Truth Detector]

Both would raise prices, neither one for one, but taxes on Americans corporations would promote a more level playing field for new more innovative corporations to enter the marketplace and result in a stronger nation.

Nothing but laughably ignorant and uneducated bullshit in this statement unsupported by any economic theories.

When states/cities/the fed have raised gas taxes they never go up one for one, the prices are already inflated by the Corporation to get as much as people will pay, so often the Corporation does not pass it all to the consumer. This would be true of tariffs also, but trump is lying when he says it wont affect prices.

More laughably ignorant and uneducated bullshit unsupported by the facts. Oil companies make between 8 and 10 cents on every gallon sold after all their costs are factored in.

The Government, local, State and Federal who did NOTHING to bring the oil to market gouge you for about 60 cents every gallon.

I wish you had a brain. But then, you are a Kamala voter so there is evidence of your ignorance.

Factors affecting gasoline prices - U.S. Energy Information Administration (EIA)

The major factors that affect gasoline prices and the components of retail gasoline pump prices.

www.eia.gov