I’m not sure why progressives don’t understand the concept that increasing expenses on corporations, whether they are large or small, results in the costs passed on the consumers. They somehow think that as companies have decreased expenses and thus increased margins, that all the money is passed on to the evil CEO’s. That’s just dead wrong and stupid.
Most important and often overlooked by idiotic progressives is the fact that when you increases the tax burden to business, it just get’s passed on to the consumers. That makes it a double whammy. Consumers pay normal taxes (income, sales, fees) plus the increased pricing on goods and services from the increased corporate tax burden. This adds to inflation which decreases spending power and further devalues the dollar.
When you listen to the drumbeat of the progressives, they are constantly calling for higher tax rates. The wealthy can afford it right? Big, evil corporations can afford it right? Just tax the corporations and watch the state coffers grow!
The warning – from executives at Microsoft, Hewlett-Packard (HP), Bank of America Merrill Lynch and Intel – spoke of the “damaging impact” on Ireland’s “ability to win and retain investment” should the country’s corporation tax rate be increased from 12.5pc.
Google issued its own statement. Considering the fact that Google employs about 2,000 people in Ireland, the government may want to pay attention. Damaging impact to the ability to win and retain investment? Yep.
You mean raising the expenses on companies means that they might turn to another location? Certainly – just take a look at the number of Fortune 500 companies who are incorporated in Delaware. Delaware offers many advantages, one of which is the exemption from Delaware corporate taxes if your business doesn’t conduct business in Delaware. Also, the filing and application fees are very low. So low that many other states are now trying to duplicate the pro-business environment of Delaware.
Granted, Delaware is a small state. However, it just goes to show you that businesses will generally look to decrease expenses and overhead whenever possible. That means looking elsewhere if necessary.
I can tell you that in my business as my expenses increase, the cost is passed on to my customers. If I am able to decrease expenses, then in many cases that results in savings to my customers. This trickles down (that evil term, right?) to the consumers of the products and services of my clients. Those consumers have more disposable income allowing them to purchase more, so on and so forth.
Is it really that hard to understand?
Number of Employees – Worldwide