14656Re: Software companies etc would pay little tax with lvt
- Dec 6, 2012--- In LandCafe@yahoogroups.com, Harry Pollard <harrypollard0@...> wrote:
> It is likely that all, or most, taxes are passed through to the eventual consumer.No, it has been known for many decades that the true burden ("incidence") of any tax is determined by the relative elasticities of supply and demand. Wikipedia has a decent article on tax incidence that explains the relationship with diagrams.
> The test appears to be that a differential tax - such as LVT - is not
> passed on. When the same tax is levied on all members of a group it will be passed on.
> So, for example, a corporation tax increase will find its way through to the consumers in due course.
> Or, a tax on more able workers will result in increases in pay until their
> after tax income becomes the same as before the tax increase.
- Roy Langston
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