Tom C wrote:
I'm convinced of the view that businesses themselves never actually pay tax. It's people that pay tax. All taxes a business appears to pay are actually passed along to the employees in terms of reduced compensation and customers in terms of higher prices.
Of course I have no proof of this, I just heard it, and it kind of makes sense.
Tom C.
If employees are willing to work at this reduced compensation, and customers are willing to pay the these higher prices, then the company is still indeed paying taxes. The company will always pay as little as it can in the marketplace for the level of expertise it needs from its employees, and charge as much as demand will support for the product it sells, so whatever taxes it pays do hit the company in the form of reduced profitibility. If taxes weren't there, that doesn't mean the company would suddenly grow a heart and start overpaying its people and undercharging its customers. It just means the company would retain a higher percentage of profit.
