Perhaps we should call it Murphy’s Law?
When critiquing someone’s economics, getting the economics wrong?
If taxes go up – profits taxes that is – will companies raise their prices? Psaki says that would be unfair. Well, maybe. But this is silly:
See, what Psaki doesn’t grasp here is that corporations aren’t individuals. They’re companies that are beholden to stockholders. Those stockholders are going to ask why it’s fair they make less money when they could adjust prices to minimize any impact.
The companies are capitalist bastard organisations. That means that if they’re able to raise prices then they already have. Capitalist bastards operating to maximise profits, see? We really do assume that corporates are already exploiting all of their pricing power already.
The pathway is actually that companies *can’t* increase prices to make up for the extra slice of profits that government is taking. So, returns to capital fall, less capital is put in to gain those smaller returns, less investment is done, the economy is poorer overall and thereby wages are lower and the workers worse off.
Corporate taxation falls on the workers not because the corporations are capitalist bastards but because their shareholders are.