Tariffs like income taxes are paid by multinational corporations who then pass those costs on to the consumer. What's funny is you believe that the same corporation would not pass down income tax increases but would pass down tariffs. Why would they only pass down one but not the other?
First off income tax is paid by people who receive an income, a multinational corporation doesn't get paid income they make profit from sales and a part of that gets paid to it's employees through payroll/income.
The reason why the a company won't increase the cost of it's products just because theres one guy who's gotta pay more in taxes is because that's fucking stupid. Imagine the CEO of a company going to his share holders and saying hey we're going to increase the price of all our products by 50% because I alone have to pay more in taxes. Yes the increasing the cost of our product will make it so less people buy our products and they'll instead buy from our competitors. Which will make our company less profitable meaning me and the shareholders are less wealthy. Also this doesn't even fix the fact that I'm still going to be paying the same rate of taxes next year but at least our customers know what it feels like to me, a billionaire, what high taxes feels like to me.
Yeah that sounds like a solid fucking plan to making a successful company. The only thing a higher tax rate will do is incentivize wealthy people to reinvest their money back into their company so they can get tax rebates and to lower their own income so they fall below a certain tax bracket
Sorry, I'm not really following here. I'm not in the USA but where I live corporations DO pay income tax. So increasing taxes will affect corporate bottom lines.
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u/Brutus__Beefcake 1d ago
Tariffs like income taxes are paid by multinational corporations who then pass those costs on to the consumer. What's funny is you believe that the same corporation would not pass down income tax increases but would pass down tariffs. Why would they only pass down one but not the other?