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ProfessorGAC

(75,861 posts)

4. Perhaps, But...

Reply to MichMan (Reply #2)

Sun Dec 14, 2025, 02:23 PM

Dec 14

...the taxes are paid on net income of revenues minus full absorbed cost.
So if they raise prices to adjust for taxes, they only need to adjust by the taxation % of the margins, not of the wholesale price.
The increase would then, in all likelihood, be 15-25% of the price.
The tariffs are applied on the wholesale price so it's a much larger fractional increase.
Conceptually, they are similar. In practice, they are quite dissimilar.

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Corporate tax rates before and after Trump Big BS Bill: [View all] applegrove Dec 14 OP

Gee at those rates, no need to offshore our tax schemes. miyazaki Dec 14 #1

Aren't they just passed on to consumers like tariffs are? MichMan Dec 14 #2

That's one point of view Cirsium Dec 14 #3

That is the point MichMan Dec 14 #6

OK Cirsium Dec 14 #8

Perhaps, But... ProfessorGAC Dec 14 #4

This is robbery nt berniesandersmittens Dec 14 #5

trump is a POS, but think those rates are incorrect. For example, FedEx didn't go from effective rate of 18% to 1% Silent Type Dec 14 #7