The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Investment Income Surtax Date:  12/3/2012  10:23 PM
Author:  bmillz Number:  117063 of 132523

In the end, even though it's a businessman who signs the tax check, it's the end customer who pays the tax, in the form of prices adjusted to cover what is, essentially, just another cost center.

While it's true that costs get passed onto consumers, it is not true that the ratio is 1:1. So the consumer would only pick up a percentage of any "tax" that the businessman would, with the businessman picking up the remainder of the percentage out of their profits. The exact ration would depend on the economic sector and its price elasticity.
Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us