• psvrh
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    1 year ago

    If you tax their profits, they can raise their prices all they like, those profits will just get taxed, too.

    The point of progressive tax policy is to force businesses to take a reasonable profit and put the profits back into the business, instead of banking profit in non-productive ways, like stock buybacks or other financial engineering.

    Right now, our tax policy is structured to incentivize profit-hoarding instead of reinvestment.

    I’d like to see more competition, too, but I’d honestly settle for progressive taxation instead.

    • frostbiker
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      1 year ago

      If you tax their profits, they can raise their prices all they like, those profits will just get taxed, too.

      They still make more money than if they didn’t raise their profits. It doesn’t incentivize then to lower their margins like competition would.

      A business is not like an individual. A heavily taxed individual may choose to work fewer hours or retire early, but a business won’t.

      • Mongostein
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        1 year ago

        Then we need a bunch of crown corporations. One each for groceries, gas, and telecoms.