Reply #4: A grain of truth - taken to the absurd

[mongo]

Certainly sales tax is passed on to the consumer. We are required to collect it on behalf of the state, and in Ohio we get a small percentage of the tax for collecting it - as long as we pay the state on time.

But corporate income taxes are on net profits before any dividend is payed to the shareholders. So they are not paid by the consumer per say, but of course that is one thing companies keep in mind when determining a price for their goods/services.

This guy also once made the assertion that taxing companies like Boeing that do tax shelters in the Bahamas would be like the US taxing a company for cars made and sold in Japan. Is it just me or does that anology make no sense?

That totally makes no sense. My assertion on this - and a lot of regulatory and tax issues, is that taxing companies in the US, and not taxing companies who do most of their business and manufacturing in the US, but maintain an offshore HQ, is more about stifling competition than anything. The tax code gets structured so that the largest companies benefit, while making it hard or impossible for competition to enter the market.