Doesn't every fee, fine, penalty and tax end up being paid by us, the everyday..

United States
January 19, 2010 4:44pm CST
Doesn't every fee, fine, penalty and tax end up being paid by us, the everyday person? Doesn't every group and company simply pass along the expense to us? So how can levying fines, penalties, and higher taxes upon business help the economy? Doesn't it simply take ever more money out of the pockets of the citizens / consumers? Thus slowing down the economy? What do you think?
2 people like this
11 responses
@EvanHunter (4028)
• United States
19 Jan 10
Honestly in my opinion the rights of the individuals have been usurped by the rights of the corporations. Where has the legislation gone against monopolies? We have a few oil companies and banks who are nearly in control of the entire world but no one seems to see that as a monopoly not even if gas prices are regulated by the oil industry themselves and have risen in cost by nearly 200-500% at different times without any clear justification on cost of expenditures. In fact expenditures have fallen compared to what they were 20 years ago but the profits have risen by billions in every quarter. The only thing that will ever kick start the economy in my opinion is a to make an example out of some of these crooked CEO's with RICO charges but I sincerely doubt that will ever happen considering that most large industries have politicians in their back pockets.
2 people like this
• United States
21 Jan 10
I'm beginning to think that the corporations are governing..
@laglen (19782)
• United States
19 Jan 10
You are 100 % right. Do you honestly think that businesses, ie banks will absorb that cost on their own? I do not think so.
@poingly (606)
• United States
20 Jan 10
Yes and no. Companies can only raise the prices of their products so high before consumers will move elsewhere. If they are monopolies (or oligopolies), there is likely government regulation in place to prevent higher costs to consumers without justification. If a company is making an insane profit margin, additional taxes might not be passed onto the consumer for these reasons (as even though the additional taxes might hurt the bottom line, raising prices would hurt it more).
1 person likes this
@poingly (606)
• United States
20 Jan 10
Taxes on businesses may also be progressive too. This can allow smaller businesses to compete as well. For instance, as a business grows bigger, costs per item often decrease, making products cheaper to produce. A higher tax on bigger companies can allow for more start ups by encouraging competition simply because of the idea that higher taxes are passed onto the consumer.
1 person likes this
• United States
7 Feb 10
Or the businesses (and jobs) move elsewhere..
@Fulltank (2896)
• Philippines
20 Jan 10
Here in my country, every Value Added Tax imposed by the government just to earn the needed billions of budget for the next year are all paid by the citizens. They already imposed at least 15% tax on our salary and taxes coming from goods, services and merchandise we buy. Since its the government that are doing it, its legalized. I should have say its "extortion" in the legal way.
1 person likes this
• United States
7 Feb 10
"Extortion".. I never thought of it that way.. or the word at least..
@bestboy19 (5482)
• United States
20 Jan 10
It's true that companies pass cost on to the consumer, but too many people don't think about that. Politicians have turned, making big business look like the bad guy, into an art form. The only thing the people think about is sticking it to those companies. It's kind of like cutting off your nose to spite your face.
• United States
7 Feb 10
Yah, and then go all those jobs. Capitalism isn't perfect, but it sure beats state owned or run everything. Look into history. It never works, and usually ends up in disaster, except for those 'ruling' that is.
• United States
20 Jan 10
Want to know why? We don't have lobbyist. The rich can afford lobbyists. The poor have activist groups who lobby for them. So we are the only ones that DON'T have a lobbyist in washington. Which means we get dumped on. They can't tax the rich hard...they are the ones they can't afford to tick off...they need their milliond for their campaigns. Plus most politicans are rich and they don't want to pay more taxes (when they bother to pay them), They need the poor for their votes. Plus no one wants to have an activist group coming out telling everyone about how a politican hurt or did not help the poor. So they do what the activists groups want....the activist get their people to the polls to vote for the candidate. They do what the rich wants and they get millions for to stay in power (re-election). SO there is the middle class....voiceless. No one cares about us. Therefore we get dumped on. Maybe we should all pool our money together and get a lobbyist.
1 person likes this
• United States
20 Jan 10
Oh I forgot to add...(sorry) Any increase in tax or fines to corporations is just going to be passed down the the everyday person. Why? They are NOT going to cut their profits or their pay...so therefore they increase the cost for their products or services to the rest of us....therefore making us pay the fine or increase in tax for them. See how it works? Sucks don't it.
1 person likes this
@dragon54u (31636)
• United States
20 Jan 10
That's the whole idea, destroy the economy. You destroy a nation's economy and you can do anything you like. Look at Hitler. He was elected to fix the economy. Mussolini was elected because he promised to make the trains run on time. Obama is destroying the economy so he can rebuild the country to suit his vision of what it should be, which is a Marxist paradise. If he is not stopped we will be ruined. Yes, all this boils down to costing the consumer. It's part of the plan, I'm convinced of it.
1 person likes this
@Lakota12 (42684)
• United States
20 Jan 10
I think you are right. makes since to me1
1 person likes this
@peavey (16866)
• United States
20 Jan 10
Of course it comes from us. There are people who think the government has money of its own, which is ridiculous. Where does it get its money? From taxes and fees paid by us. When the government needs (or wants) more money, it raises it from the people and from businesses. Businesses pass the cost along. If they didn't, they would make less or no profit. It seems like a simple concept to me, but apparently not everyone can grasp that!
1 person likes this
@celticeagle (119864)
• Boise, Idaho
20 Jan 10
No, not every fee, fine, penalty and tax. Nearly it would seem but not all. Companies are fined heavily for going against the laws and rules set down and that is only the beginning. It would certainly seem that we pay them all but even big business has to pay in the end.
@poingly (606)
• United States
20 Jan 10
I would say every fee, fine, penalty, and tax SHOULD be passed onto the consumer. These fines are in place to create fair business practices. If one company uses illegal immigrants to produce their product, it saves them money and makes their product cheaper. But company X doing this illegally undercuts company Y putting it out of business. The fines (when passed onto the consumer) increases company X's price back up to comparable to company Y's. Problems include the fact that the fine is not as high as the cost savings of hiring illegally or that company X just holds out on the low price at a loss until company Y goes out of business, etc. Capitalism (as we do it historically here in the US at least) is not just about competition, but about FAIR competition. Disobeying the laws makes for unfair competition and those fines, fees, and taxes are often meant to equalize that unfairness.
2 people like this
@celticeagle (119864)
• Boise, Idaho
21 Jan 10
Exactly! Well said.
1 person likes this
@gewcew23 (8011)
• United States
20 Jan 10
Government and corporations are just abstract term, they are just a group of people. You cannot tax a corporation without taxing either the people that work for that corporation i.e, less wage growth or lower stock dividends which affects 401k plans, taxing the people that benefit from the services that that corporation provides i.e high cost for those services or less services for the same amount, and taxing investors i.e lowers stock value and lowers stock dividend returns. Taxes are a burden. If you went out to try to win a marathon you would want to be as light as possible. You would wear the lightest shoe, shorts, shirt, etc. No one runs a marathon to win hiking boots on because how heavy they are. The same with taxes. You tax the economy more slower it will run.