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Here is an economic lesson for Democrats. Corporations have NEVER in history paid taxes, never. No matter how high the "tax" on businesses, they never pay.
All taxes on businesses are part of the price consumers pay for products or services. Add a tax and the price of the product goes up.
"It’s shocking for the state’s highest-ranking finance officer to express such ill-informed views on economic competitiveness in California [California’s not broken]. State Treasurer Bill Lockyer and fellow author Stephen Levy, a liberal economist who believes in higher taxes and more government spending, don’t think that California having the eighth-highest corporate income tax rate matters for investment. Apparently, state competitiveness and incentives for entrepreneurship and investment are not influenced by having the third-highest top personal income tax rate in the country. But, of course, these taxes do matter and explain why California is performing so poorly, particularly when compared to our potential or compared to many other states. Tax rates and the state’s regulatory climate matter."
California tax policy harms families and jobs, do not add to revenue and in fact, causes social costs to go up. This is why we have 12.4% unemployment--economic illiterates running government.
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All taxes on businesses are part of the price consumers pay for products or services. Add a tax and the price of the product goes up.
"It’s shocking for the state’s highest-ranking finance officer to express such ill-informed views on economic competitiveness in California [California’s not broken]. State Treasurer Bill Lockyer and fellow author Stephen Levy, a liberal economist who believes in higher taxes and more government spending, don’t think that California having the eighth-highest corporate income tax rate matters for investment. Apparently, state competitiveness and incentives for entrepreneurship and investment are not influenced by having the third-highest top personal income tax rate in the country. But, of course, these taxes do matter and explain why California is performing so poorly, particularly when compared to our potential or compared to many other states. Tax rates and the state’s regulatory climate matter."
California tax policy harms families and jobs, do not add to revenue and in fact, causes social costs to go up. This is why we have 12.4% unemployment--economic illiterates running government.
More...