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No. of Recommendations: 12
I don't disagree that corporations shouldn't be taxed; but the reality is that corporations never pay taxes. They put their tax burden into the price of their product/service and you and I pay their taxes through increased prices for their product/service.

No, they really don’t. Prices are set by cost of materials, distribution costs, and everything else *before* the sale. Taxes come after, if at all.

Consider scenarios: Goofyhoofy’s Finer Screen Door Company builds a factory to produce screen doors. I spend a million dollars doing so. I sell them for $100, except I only manage to sell 100. My net income is $10,000. How much did I allocate for taxes? Nothing. How much will I pay in taxes? Nothing.

Scenario 2: I build the same factory, I sell them for $100, I sell 10,000! My income is $1,000,000. How much did I allocate for taxes? Nothing. How much do I pay in taxes? Nothing. (No profit.)

Scenario 3: Same factory. Same price. I still 100,000. My net income is $10,000,000. How much did I allocate for taxes? Nothing. But my net income is now $9,000,000. How much will I pay in taxes? Whatever the tax rate is times $9,000,000.

Nod one knows what their taxes are going to be before the game starts. I have run several businesses, and “taxes” have never been part of the price setting mechanism. That has always been determined by the market (competition0, COGS, and so on.

Fr simplicity I have ignored depreciation costs of the factory over howevermany years, but the concept remains: I have no idea what the taxes are going to be - or if there are going to be any at all. How can I “put that into the cost” when it’s not there in the first place and could range from zero to substantial?
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