What the White House does not know about corporate taxes

 Vodka Pundit:

...

So we don’t need to ask you to trust us when we say we have read some deeply stupid stuff.

But nothing so stupid as White House Press Secretary Jen Psaki trying to explain exactly how economics doesn’t work to the White House Fluff Corps.

White House Press Secretary Jen Psaki claimed during Monday’s press briefing that it would be “unfair and absurd” for companies to raise costs on consumers in response to the Biden administration raising the corporate tax rate.

If Democrats get their way, corporate taxes are about to go up by about 25%. And because it would be “unfair and absurd” for anyone to raise prices on consumers in response to increased costs…

…wait, wut?

Psaki actually represents perfectly her brothers and sisters on the Left in their belief that businesses are all run by Scrooge McDuck and have secret safes hiding all the money they took away from poor people. With just the right taxes, the money will come out and the poor people will be rich again.

But Insanity Wrap knows — you know — that’s not how any of this works or has ever worked or ever will work.

Running a business is a constant balancing act between ever-changing costs and incomes. And that a business that can’t make a profit doesn’t stay in business for long.

Price of materials goes up? Prices go up. Cost of labor increases? Prices increase. Tax hikes? Price hikes.

A business might eat a temporary cost increase for a short while in order to avoid alienating customers, but only for a short while.

Every dime every business ever paid in taxes was first collected as income from their customers.

Everyone who isn’t an addle-brained leftist like Jen Psaki knows this.

...

Corporations do not pay taxes.  They collect taxes from their customers and send the money to the IRS.  Taxes are just another cost of doing business that must be dealt with in the cost of goods and services.  Have you ever noticed how sales taxes are reported in a consumer transaction?   Other taxes may not be itemized in the billing but they are certainly included in the cost of the goods and services.

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