patrick.net

I think so. Taxes come out of profits, not operating costs.

I don't even know why Corporate Taxes are being discussed, other than to raise them. They're at rock bottom (except for a brief period under Bush that didn't stop the 2007 recession from happening) at least since WW2 and quite possibly before that.

CL says

I have typically heard that since they are taxed on profits, then in order for the corporation to be able to "raise prices" to cover taxes, it would have to have been possible for them to charge more prior to the tax increase.

You are exactly right. Prices are determined by the market. Companies cannot arbitrarily raised prices.

The other argument you hear is that it affects investments. But companies pay taxes on profits, meaning what remains after everything they spend.

Also the reverse argument is true: consumers taxes are passed back to corporations - in the form of lower demand for their products. You will never hear that from a republican.

Heraclitusstudent says

Also the reverse argument is true: consumers taxes are passed back to
corporations - in the form of lower demand for their products. You will never
hear that from a republican.

Or, with extremely low taxes corporations arbitrarily raise prices to grab more of discretionary incomes, especially with critical or needed items.

Heraclitusstudent says

Also the reverse argument is true: consumers taxes are passed back to corporations - in the form of lower demand for their products. You will never hear that from a republican.

Of course, they would argue, "See? No taxes for anyone!!" :)

So, someone asked me if the Medical Device tax, etc would be passed on to the consumer. His logic was that if they all the manufacturers of the sector had to pay the tax, it would be a matter of time before they adjusted accordingly and built that into their pricing.

In that case, it would seem that we could argue that their demand will increase, which would make layoffs hard or impossible so there's not a way for them to offset the expense by more nefarious means? They would need to pay the tax out of their profits then?