Companies don't pay taxes
Reader comment on: 60 Minutes on Corporate Taxes
Submitted by Val (United States), Mar 29, 2011 06:11
Companies don't pay taxes. They collect tax money from their customers and make a profit on the activity. Here's how it works:
A company makes a profit on its sales minus its costs. Its costs are raw materials, engineering, a whole bunch of stuff called 'overhead', and included in the overhead are the taxes. When the taxes go up, the overhead goes up, raising the cost. If profit is controlled as a percentage of sales, the company profits from the tax collection.
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