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> Taxes on corporations, like tariffs, are just passed onto consumers Never heard this argument before - it sounds very implausible. Do you have any studies o
by blago 2y ago
> Taxes on corporations, like tariffs, are just passed onto consumers
Never heard this argument before - it sounds very implausible. Do you have any studies or source for that claim?
- pitaj 2y agohttps://www.nber.org/system/files/working_papers/w27058/w27058.pdf https://www.nber.org/system/files/working_papers/w27058/w270...
- jquery 2y agoAccording to that, corporate taxes are passed through at a rate of .24. And the pass-thru decreases as there’s more competition and for cheaper goods. In other words it’s a fairly progressive tax. Tariffs are a 100% pass-thru by definition because they’re a sales tax. This hits lower income people the hardest (unless we only tariff luxury goods).
- therealdrag0 2y agoAren’t terrifs paid by the importer? Most consumers aren’t importing goods afaik. So it seems like there are still margins that can be eaten into to avoid 100% pass through.