Andrew Yang claims that the incidence of a VAT would be on corporations that currently evade income taxes. Surprisingly, this take is not entirely wrong!pic.twitter.com/qwtaKXRK4a
Show this thread
Because a VAT would make it more expensive to purchase goods and services in the U.S., it would, among other things, lower the value of corporate profits that are used to make purchases in the U.S.
-
-
As such, it's not entirely wrong to say that a VAT hits corporate profits, even if that isn't most of where the incidence of the tax is falling.
Show this threadThanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
This is a point I've raised before about broad-based consumption taxes and whether their macroeconomic effects are as favorable compared to income taxes as a lot of theory would suggest. In effect, they reduce real incomes for consumption purposes. It's fairly complicated.
-
It's a bit like to what extent property taxes are borne by rental property owners because property taxes get capitalized into the prices of properties or that they are borne by renters as property taxes are passed through. It varies from time to time and place to place.
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.