Tuesday, April 25, 2006

Economics Lesson for Today

Corporations Do NOT Pay Taxes

No, I haven't lost my mind. Remember, that any expenses a corporation incurs are passed on to the consumer in the form of a price. This includes taxes as well. It's what is referred to as an embedded tax. If the government imposed some type of windfall tax on gas companies, this would not cause the prices to go down due to the companies reducing their profits to, in turn, reduce their tax liability. I brought this up in November regarding Exxon's profits.
The government took in nearly three times more money ($25 Billion) than Exxon's net profits ($9.9 Billion) and (some) are wanting more.
Now Playing: "Where The Streets Have No Name" by Neal Morse

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