December 10 2019 at 11:35 am
This issue is a matter of substantial economic research, so with due deference to Prof Weeks, we don’t have to just take his word for it. What does the literature say? Certainly, when taxes on companies rise, then in the first instance, companies will just pay more tax on their profits, and the shareholders will suffer lower returns. But over time, shareholders will attempt to maintain a level of post-tax return on their capital, which will create pressures to decrease costs including wages paid to employees, and to increase prices charged to customers. So, down the line, who ultimately bears the tax? Answers on a postcard.
Richard Murphy says:
December 10 2019 at 11:58 am
Read Prof Kim Clausing
The answer? Most likely shareholders
In wider terms, it is precisely the jurisdiction shopping that such
companies undertake that explains the lack of evidence of an impact
upon labour of the corporate income tax.
I just wanted to check that that is the implication that you are
making in this part of your conclusion?”
“Thank you for your email. Yes, that is the implication.”
Alternatively of course we could just say he’s not doing economics but politics.