A common assumption, based on theoretical models of tax incidence, is that capital (i.e. shareholders) bears the burden of the corporate income tax. Recent empirical work using cross-country data on corporate taxes and wages suggests reconsidering this assumption; labor may actually bear a substantial burden from the corporate income tax. - Treasury research paper, "A Review of the Evidence on the Incidence of the Corporate Income Tax," http://www.treas.gov/offices/tax-policy/library/ota101.pdf Empirical evidence from three different studies cited in the paper includes: 1. It is estimated that 61% of any additional corporate tax is passed on in lower wages in the short run, and around 100% in the long run. 2. Using cross-country panel data from the Luxembourg Income Study, it is estimated that a 10% increase in the corporate tax rate decreases annual gross wages by 7% percent. 3. The results in this paper suggest that corporate tax rates affect wage levels across countries, and that higher corporate taxes lead to lower wages. A 1% increase in corporate tax rates is associated with nearly a 1% drop in wage rates. High Corporate Taxes = Lower Wages
Other - Politics & Government - 3 Answers
Random Answers, Critics, Comments, Opinions :
1 :
No, bailing out subprime predatory lenders would definitely be corporate welfare.
2 :
As I have said before that without the rich there would be no jobs. You take their money and jobs are lost Their taxes are considered a business expense and is passed onto the consumer. You keep prices down, job rates high and companies in America by cutting them some tax slack Anyone in business is going to move to where they can afford to do business as their job is to make money As soon as the Democrats in this country learn this the companies will slowly come back Then you have the unions that would like to put them out of business and run up the cost to us all so they can make a dollar (different story for another day)
3 :
I definately agree that some of the arguements the liberals make are BS, but not all of them. I am inclined to believe politicians (including liberals) increase taxes above the table, & give loopholes & other benifits (often called corperate welfare) under the table. The biggest lie is that many claim it is jsut the republicans that do this.
