Tax incidence, tax incidence!

I see an incident of Ritchie agreeing with the tax incidence argument.

Microsoft has complained that Obama’s attack on tax havens will challenge its competitiveness in global markets.

It is a monopolist. How could it lose competitiveness as a result of tax change? 

As this analysis shows – the reality is that it is simply very good at tax avoidance: as a result it shifts the tax burden from those most able to pay in society (like Bill Gates) to these least able to pay.

See? Coporate taxes aren\’t paid by the company. They fall on people, not companies.

Strange how he\’s never consistent in this argument though…..

6 thoughts on “Tax incidence, tax incidence!”

  1. When Labour get ejected from office, do you think the new government will still give this windowlicker house room? With luck he will fade back into the obcsurity he deserves.

  2. Kit beat me to it.

    Bill Gates, as much as I hate his company, spends his money so much better than the US government could.

  3. “…and a lot more efficiently than if the money had been processed through the American Govt, even if it had been hypothicated.”

    Yes, because then George W Bush would have spent it on reckless military adventurism.

    So we all win. Microsoft doesn’t pay taxes on its monopoly profits, which means it will be able to compete against itself in global Operating System market.

  4. Except that MS isn’t a monopoly. Its certainly the largest player but there are many alternatives – most of which are compatible.

    Even if it were a monoploy it would have to keep cost low enough that starting a competing product would not be profitable – so in effect it is competing with itself and the customer wins.

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