All the political talk about taxation, like suck more money from the wealthy, or more from corporations, or less from certain other groups, etc. never debates the cause and effects of these actions.
Originally Posted by Hoosier8
Someone can provide more accurate data if they believe something different, but I'm guessing the average net profit margin of US companies is around 5%. So...what happens if corporate taxation is increased by 3%? Obviously the 5% net profit margin will fall. Less income means more problems sustaining the company. Now...the reason the average profit margins are not 10% is because these companies cannot arbitrarily increase their product/service pricing because of market competition. This leads me to believe that we must respect the 5% net profit margin number! So if we increase corporate taxation, what will be the effects of doing this? IMO, for a few very healthy companies it will be no big deal, but for 'most' companies, it applies pressure to compete, to reduce expenses, to reduce labor, etc.
It is really stupid to beg private industry to create more jobs, and more higher paying jobs, and less outsourcing, then in parallel increase corporate taxation or any additional expenses caused by government policy...
Last edited by OldManOnFire; Apr 13 2012 at 11:24 AM.
Did you know both our problems and the solutions can be found simply by looking in our mirrors...and...Never confuse the extraordinary stuff I think and write with that of a well-balanced person!
When Americans wake up so will the country...until then...we remain comatose and hopeless.
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