2/3 of United States corporations paid no federal income taxes from 1998-2005

Kann wrote:

Wether or not you tax corporations they will move. As long as an international corporation sees lower wages somewhere, they'll move. I don't have time to find the link but Adidas recently relocated to Vietnam a shop based... in China : the wages were getting too high.
And since you pay taxes, don't you think it's only fair corporations pay some as well?

Don't consumers end up paying all the tax corporations would pay anyway?

The people who hold assets of any corporation are all individuals, they pay income tax or capital gains and then on the other end the embedded tax in the cost of the good. Right?

Everybody pays for any corporate tax because it's incorporated into the cost of thier product as I see it anyway.


I don't think wage is the determining factor in all corporate decisions either though it does seem that way sometimes. Tax structure, Quality, Shipping Costs, Value to the corporation etc. Sure I can buy crap in a box from china that I know will break in less than a year, but I'd much rather buy a quality unit from somewhere else.

In the sneaker market along with supermarket food in some instances I'm sure the cheapest possible production costs are key, but I don't think it's the deciding factor in all industries. They certainly are good at marketing as are drug companies so If they can convince people to spend $150 on $15 dollar shoes that says something about the consumer really. We have had many Japanese car companies move to the US, Pirelli tires just built a factory near where I live as did Kia Motors of Korea. Saving on shipping can increase their bottom line and allow them to still offer a price attractive to the customer. With energy skyrocketing, saving money on Labor doesn't have to mean moving a company to Laos, it might mean moving operations to Germany and Manufacturing to Alabama.

I think it depends on the needs of the corporation and the bottom line obviously. They might need highly skilled workers. They still are responsible to thier share holders many of which are just common people with pension plans and 401K's invested in their company dependent on their success for thier retirement.

Pacomc79 wrote:

Don't consumers end up paying all the tax corporations would pay anyway?

YES.