>Whether the corporate taxes are borne by workers (lower wages) or
>consumers (higher prices) or investors (lower dividends) cannot be
>theoretically decided in advance. It all depends on which sector --
>workers, consumers, or investors -- is best organized, can decrease
>elasticity, and has more power to stick it to the others.
All taxes are at the expense of profits. "Workers" and "consumers" are the same people anyhow, but (if they paid taxes) it is plain that any increased taxes paid out of their wages would necessitate increased wages to compensate.
The debate about who pays higher taxes is futile if it starts from the fictitious premise that the working class pays tax. Obviously the overall level of taxes is of great significance to different capitalists and different sectors of the capitalist class. Likewise the struggle to determine how the burden of taxes is shared amongst them pays. All sectors of the ruling class will go to great lengths to shift the burden onto other capitalists, including trying to enlist the political support of the working class to their cause.
But really it makes little difference to us which capitalist actually pay, unless one sector becomes so powerful that its efforts to avoid paying tax actually distorts and damages the economy.
Bill Bartlett Bracknell Tas