When business taxes rise, they raise prices to pay them. A simple concept that liberals cannot grasp.
“When business taxes rise, they raise prices to pay them. “
Not all businesses can “pass-along” tax increases through pricing. This is especially true in the short-term, and for small- businesses.
Classic Supply vs. Demand tells us that increasing price levels will force things further down the Demand-curve. Less business activity has longer term implications for big-business, too.
Larger businesses yes.
However, a small business has a difficult time passing along increased costs.
As a small business owner, whenever I had a tax increase, I laid people off and my wife and I worked longer hours to get the work done.
I am now down to just me and my wife. So, any tax increases means I cut my household/business budgets.
As usual, to politicians, the problem is always that "greedy corporations and wealthy people" are not paying their "fair share." It is never that the government is spending too much.