Re: Completely Unwoven: Business, Economics, and Tax Policy 4.0
By that logic, there is never any corporate gains or losses for anything. In reality, its either customers or the company because the other groups you mentioned are the company.
Customers take the hit 1) if companies know to pass on the costs and 2) due to elasticity can do so. Otherwise, pretty much the company takes the hit. If employees get fired due to tax, then the company's capability weakens...and that could continue and continue until there is no company left. You don't pay suppliers and they stop selling you product. Other suppliers take notice (they are competitors but they will not risk shipping you product and not being paid). If you have no suppliers, you won't have any customers. Lastly, share price is the health of the company by definition. So if share price goes down, the company was just damaged. Shareholders care because they are owner. If you Mr. CEO don't really care about share price, you also best not care about your job.
The question is whether the cost can be passed on to consumers or not. The other outcomes you mention are all recipes for how companies fail.
Originally posted by 5mn_Major
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Originally posted by FreshFish
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Customers take the hit 1) if companies know to pass on the costs and 2) due to elasticity can do so. Otherwise, pretty much the company takes the hit. If employees get fired due to tax, then the company's capability weakens...and that could continue and continue until there is no company left. You don't pay suppliers and they stop selling you product. Other suppliers take notice (they are competitors but they will not risk shipping you product and not being paid). If you have no suppliers, you won't have any customers. Lastly, share price is the health of the company by definition. So if share price goes down, the company was just damaged. Shareholders care because they are owner. If you Mr. CEO don't really care about share price, you also best not care about your job.
The question is whether the cost can be passed on to consumers or not. The other outcomes you mention are all recipes for how companies fail.
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