Quote:
Originally Posted by piece-itpete
Of course 
If it costs me $1.00 to make something, and I need to make 20% to justify being in business, I charge $1.25.
If the government changes me 20% on it, I need to charge $1.50. I sure as heck don't pay it, the customer (who already pays income and sales tax!) does.
Pete |
You still haven't thought it through. Your thoughts are a train wreck. Writing is nature's way of letting you know how sloppy your thoughts are.
First off you need to define what a "business" is when you are talking about "business taxes". Based on your discussion it seems that you are talking about federal income tax on corporate profit.
Second, it seems that your goal is to get money into employees hands so that it flows through the economy. It also seems that your goal is to reduce the tax burden on the corporation.
Given those assumptions, let's go through two extreme examples and see how they pan out.
First, let's assume that the business tax rate is 1%. That means that after the company pays its expenses and employees it pays 1% on the profit. A CEO will likely think that 1% is pretty low and therefore keep the profit in the corporate coffers.
Second, let's assume that the business tax rate is 99%. That means that after the company pays its expenses and employees it pays 99% on the profit. A CEO will likely think that 99% is too much and therefore increase its expenses to keep profits down. How can a corporation increase its expenses? It can pay its employees more.
The corporation's motivation on how to split the extra money between its executives and its laborers depends on the personal income tax rate. The heavier the executives are taxed the more sense it makes to pay the money to laborers.
The entire political system would work a lot better if laborers focused their political energy on their rational self interest. Upper management has shitpots of money to buy votes and does not need workers political help.