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Biden's tax plans

Psaki says it's absurd to think corporations would raise prices for consumers due to higher taxes.

Frederick Hayak said, many years before, if socialists understood economics they wouldn't be socialists.

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Northwest · M

I take it you believe you understand economics? Nor clear from this post, so just asking.

Taxes are based on P&L or Profit and Loss. When a company makes money, it pays taxes. When a company does not make money, it does not pay taxes.

The price of a product is not based on taxes, it is based on supply, crossed with product development/production costs.

In simpler terms, when Apple decides to price its iPhone, they look at the following (not an exhaustive list):

- how much it costs to develop it
- How much it costs to manufacture it
- How much it costs to market it
(all over the projected lifetime of the product and projected sales)

Then they decide what the price should be.

Here's what does not go into these equations: Apple's tax rate.

If this reply sounds patronizing, it's because it's meant to, trying to match the tone of the OP's post.

Carla · 61-69, F

But, @Northwest. If you cant complain about this administration raising the average family's taxes, then making those that dont pay their fair share pay it, must be vilified.
Cutting one's own nose and all...

IronHamster · 56-60, M

@Northwest Tax code goes far beyond profit and loss. If I reinvest all my profits into my company, I have no profits, now, do I?

Northwest · M

@IronHamster [quote]If I reinvest all my profits into my company, I have no profits, now, do I?[/quote]

Not really. You need to learn a bit more about taxation and amortization of assets. Still not an answer to my comment, and has nothing to do with your claim that a company's tax rate affects product pricing.

IronHamster · 56-60, M

@Northwest Amoritization of assets lowers taxes, and will not increase them.

Northwest · M

@IronHamster Did you forget your question? Here it is:

[quote]If I reinvest all my profits into my company, I have no profits, now, do I?
[/quote]

IronHamster · 56-60, M

@Northwest Are you actually meaning that tax (expense) does not affect the cost of doing business?

Northwest · M

@IronHamster [quote]Are you actually meaning that tax (expense) does not affect the cost of doing business?[/quote]

Taxes are computed AFTER P&L dude. They are not part of the product cost calculation.

IronHamster · 56-60, M

@Northwest Wrong. Oh, fuckity fuck fuck fuck how fucking stupid you are.

Northwest · M

@IronHamster [quote] Wrong. Oh, fuckity fuck fuck fuck how fucking stupid you are.[/quote]

Ad hominem attacks. I guess for you it's a substitute for knowing what you're taking about. It's not the same. Let me know when you decide to actually respond.

QuixoticSoul · 41-45, M

@IronHamster And your tax burden will be correspondingly low.

Northwest · M

@QuixoticSoul I am waiting. Eventually he will figure out what EBITDA means (maybe).

IronHamster · 56-60, M

@Northwest You believe taxes are solely based on profit and loss, though, and you question the knowledge of anyone that thinks differently. I find that rather Dunning Kruger.

Northwest · M

@IronHamster [quote]You believe taxes are solely based on profit and loss, though, and you question the knowledge of anyone that thinks differently. I find that rather Dunning Kruger.[/quote]

It took you 8 days to Google Dunning Kruger? The irony here is that you don't realize that you're the one who's questioning everyone else's knowledge.

It's really not rocket science. Corporations pay taxes on profits after expenses and appreciation. That tax rate has nothing to do with pricing. Pricing is based on supply/demand elasticity and cost of goods. Two separate things. Wrap your brains around it, if you can.

IronHamster · 56-60, M

@Northwest I have a life. You are the one that lives here. Corporations also pay property tax, permits, usage fees, licenses, and so forth, just to open up your simple mind.

Put this in perspective. In my city, it costs $70,000 for permits (a tax) to break ground on a house. If the land costs 100,000 and the structure costs 400,000, you apparently think the developer will sell that for anything over 500,000.

Northwest · M

@IronHamster

[quote]I have a life. You are the one that lives here. [/quote]

Weird choice of terms.

[quote]Corporations also pay property tax, permits, usage fees, licenses, and so forth, just to open up your simple mind.

Put this in perspective. In my city, it costs $70,000 for permits (a tax) to break ground on a house. If the land costs 100,000 and the structure costs 400,000, you apparently think the developer will sell that for anything over 500,000.[/quote]

Which is NOT what we're discussing, but hey, if you can't defend your point, throw a strawman into it.

QuixoticSoul · 41-45, M

@IronHamster [quote] Put this in perspective. In my city, it costs $70,000 for permits (a tax) to break ground on a house. If the land costs 100,000 and the structure costs 400,000, you apparently think the developer will sell that for anything over 500,000.[/quote]
That’s all sounds like local shit that the feds have nothing to do with, so it’s not clear why you’re even bringing it up in this context.

IronHamster · 56-60, M

@QuixoticSoul Idiot.

QuixoticSoul · 41-45, M

@IronHamster Awwwww someone’s cranky

IronHamster · 56-60, M

@QuixoticSoul So sad you are having a bad day. Get a nap and try again.

Oberon1 · 61-69, M

@QuixoticSoul For such an [b]integral and life saving [/b]part of the US economic machine, you sure spend a lot of time on SW!

QuixoticSoul · 41-45, M

@IronHamster Hush now, maybe if [i]you[/i] take a nap, you can tell us what Psaki has to do with local building permits.

QuixoticSoul · 41-45, M

@Oberon1 Yes - I’m on the clock right now 🤷‍♂️

Oberon1 · 61-69, M

@QuixoticSoul Well, as important as you claim to be, it's no wonder we are going down the drain!

QuixoticSoul · 41-45, M

@Oberon1 Can’t say I ever claimed to be [i]important[/i] - very few people are.