Taxing corporations


Question for all… thinking about it lately.  I can’t believe that I never truly realized that corporations passed their taxes on to their customers.  I knew it at some level, but it never really hit me until this year.  However, what I have seen from personal experience is that when a company is having financial troubles the first thing it does is raise its prices, the second thing it does is to put off increasing expenses in many ways including making changes to employee benefits, the third thing that it does it to lay off employees, the forth thing it does is to close and/or sell parts of the company.  So, if a company is running pretty smoothly right now, but in a few months its taxes are raised and it begins to have financial troubles what is it going to do?  Now, of these things that it can do how many will a negative affect on taxpayers?  If these things have a negative affect on taxpayers, then what will be the impact on the economy?  Or do you disagree with me and see that a tax on corporations will have a positive impact on the economy and that none of my examples will happen?

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