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re: Corporate income tax is borne primarily by labor and workers, research shows.

Posted on 11/8/17 at 1:43 pm to
Posted by 90proofprofessional
Member since Mar 2004
24445 posts
Posted on 11/8/17 at 1:43 pm to
I think you are overstating what that article argues to the point of contradicting yourself.
quote:

Corporations do not pay taxes. They collect them.

How could the above be correct if:
quote:

labor, through reduced wages, pay 45-75%

instead of 100%?

From the article, where it refers to the current state of the body of literature:
quote:

Correcting for the overstatement, and assuming such returns determine incidence, implies a business tax incidence that is roughly split 50-50 between capital and labor, more in line with the empirical literature.

It sounds like this guy is saying that corporations in fact pay a significant chunk, rather than it all being passed down, as the first quote above (by you) implies.
This post was edited on 11/8/17 at 1:45 pm
Posted by HailHailtoMichigan!
Mission Viejo, CA
Member since Mar 2012
69370 posts
Posted on 11/8/17 at 1:59 pm to
Regardless of whether the tax is paid by labor or by shareholders, it is ultimately coming out of the pockets of somebody else.
Posted by Jyrdis
TD Premium Member Level III
Member since Aug 2015
12812 posts
Posted on 11/8/17 at 5:12 pm to
quote:

I think you are overstating what that article argues to the point of contradicting yourself.
quote:
Corporations do not pay taxes. They collect them.

How could the above be correct if:
quote:
labor, through reduced wages, pay 45-75%

instead of 100%?






I'm somewhat interested in this. I took a quick glance at the Tax Foundation report and noticed they were citing some well-known papers. Though, what I'm more interested in is how they parsed out the effects.
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