task0778
Diamond Member
In a 2020 study by Scott R. Baker of Northwestern University, Stephen Teng Sun of City University of Hong Kong, and Constantine Yannelis of the University of Chicago estimate that 31 percent of the cost of an increase in corporate taxes is borne by consumers, 38 percent by workers, and 31 percent by shareholders, or about a third each. Other studies have found different ratios. A 2020 Tax Policy Center study, a joint effort between the Urban Institute and the Brookings Institution, estimates an 80–20 split between investors and labor. The Tax Foundation’s Stephen J. Entin estimated in 2017 that labor pays 70 percent or more of the corporate tax. Differences aside, these studies share a common conclusion: Ultimately, corporations themselves pay no corporate tax.
Corporations Don’t Pay Corporate Taxes. People Do | National Review
Addressing Janet Yellen’s call for a global minimum corporate-tax rate.
www.nationalreview.com
SO - if you raise corporate taxes as the democrats are always trying to do, ultimately the corporation itself really does not suffer. These guys will find legal ways to avoid their taxable income of spread that higher tax burden around to consumers, labor, or shareholders. But 1 thing is obvious IMHO: those big corps will find ways to reduce their tax burden as much as possible, which means the tax revenue that we are told the gov't will receive is always less than what we are told.
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