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re: Corporate income tax is borne primarily by labor and workers, research shows.
Posted on 11/8/17 at 2:23 pm to HailHailtoMichigan!
Posted on 11/8/17 at 2:23 pm to HailHailtoMichigan!
quote:
The point of this thread, which I derailed by going too abstract, is to discuss the incidence of the corporate income tax.
Can we go a step further and acknowledge that the point of discussing incidence of the corporate tax is to defend the position that cutting it would actually be a tax cut for workers?
That is the point, yes?
Posted on 11/8/17 at 2:27 pm to 90proofprofessional
quote:
Can we go a step further and acknowledge that the point of discussing incidence of the corporate tax is to defend the position that cutting it would actually be a tax cut for workers?
Sure, and this is where I get lost in the literature, to be honest. Let's say there are 2 periods, one before the corp tax, one after. I understand why a company can pass on their tax bill to workers in the form of lower wages. What I can't understand in my mind, intuitively, is why cutting the corp tax rate would incentivize them to raise the wages back to what they were before the corp tax was levied.
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