First, they have argued that Obama’s tax increases would end up hitting every income group. Strictly speaking, this is true. Obama’s increase on the corporate income tax would ultimately fall on all stockholders, even poor ones. In practical terms, though, most families own little enough stock that the other features of the tax plan would matter far, far more. That’s why the Tax Policy Center numbers, which include the corporate tax increase, come out as they do.Uh, does it not occur to these policy analysts and reporters that the simplest way for a corporation to cover increased taxes is to increase their gross margin, which in turn requires that they raise prices?
Friday, August 22, 2008
And This Is an Economics Reporter?
From David Leonhardt's NYT Magazine article on Obama's economic policies: