A Common and Silly Republican Argument

Listening to C-SPAN this AM, I heard yet another caller bring up the point that corporations did not pay taxes, they just increased prices on their products to make up the difference in their tax rates....and he gave Burger King as an example. Then he proceeded to contradict his own argument and wasn't even aware of it.

He said if Burger King's taxes were raised, then their .99 cent hamburger would go up to 1.19. But the way the market worked, if MacDonald's took their prices down, then the market would determine the prices. Exactly! But that simply disproved his point. Burger King could raise their prices all they wanted but if the other hamburger places lowered their prices, then no one would buy BK...The market and competition would determine the price of products - not the tax rate on the corporation. Competition still is a factor, no matter how high the tax rates on corps.

As a retailer, I am only an agent for the state when it comes to collecting sales tax. It has no bearing on my price whatsoever.

Thanks for your comment. :)

Only if only Burger King has to pay the higher taxes. Since McDonalds would have to pay the same higher taxes, they would both be motivated to raise prices.

federal taxes are on profits, not gross receipts.