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Rogue Wolf
Mourns the Loss of lilhurricane

join:2003-08-12
Troy, NY
reply to Transmaster

Re: If the facts dont fit...

Sadly, many people keep forgetting this. When faced with higher taxes, a corporation's executive staff will not say "Well, let's pay ourselves less to make up for it", they will say "Well, let's raise prices to make up for it" or "Well, let's cut back on service/employees/benefits to make up for it".

Let's make taxes fairer for everyone, sure, but let's also remember that corporations get their money from us.
--
Hexadecimal humor really turns me 0FF.


huntml

join:2002-01-23
Mullica Hill, NJ

4 edits
said by Rogue Wolf:

Sadly, many people keep forgetting this. When faced with higher taxes, a corporation's executive staff will not say "Well, let's pay ourselves less to make up for it", they will say "Well, let's raise prices to make up for it" or "Well, let's cut back on service/employees/benefits to make up for it".

Let's make taxes fairer for everyone, sure, but let's also remember that corporations get their money from us.
I agree with you in principle, but the problem is that corporations DO NOT WANT TO PAY THEIR FAIR SHARE. It is the fiduciary responsibility of a corporation, after all, to maximize return on equity, and this necessarily involves attempting to minimize tax liabilities. Taxes are only applied to *profits*, after all, which makes them a direct hit on return to shareholders.

The Obama administration put forward a series of proposals intended to eliminate corporations' abilities to dodge taxes by shuffling their profits to offshore corporations. You know, the whole 'three thousand US corporate subsidiaries all headquartered in the same Cayman Islands office building' issue. It has been uniformly lobbied against the by most if not all of the corporate and CoC lobbying groups (even the ones that are more pro-Democrat and try to develop reputations for good corporate citizenship like the Business Software Alliance), and attacked by pro-business (mostly, but not all, Republican) legislators, and is having a hard time moving forward.