OT: Chargers Moving to Los Angeles

[Seacoast Fan]

I always get a laugh when people talk about tax breaks that companies get and how they lament the "extra burden" put on tax payers. It tells me that people just don't understand how taxes work for corporations.

Corporations never pay taxes. And it doesn't matter if it's property taxes or Corporate taxes. Corporations figure that cost into the good or service being provided. So, it's the consumer who ultimately pays it. With the top Federal rate of 39.5% for Companies/corporations that make more than 18M per year, that's a lot of money being taken from the taxpayer. And, thanks to the wonderful tax law, any deductions that "offset" taxes, get turned into extra money for the company owner.

And before anyone says that it isn't true, it is. From the lowest end of a person renting a house to the high end of companies that own multi-family apartment buildings, to corporations that own Stadiums.

OK, I'll bite.....just because a company can pass along the tax hit doesn't mean that giving that company a tax break doesnt increase the tax burden on other taxpayers. If all hotels are taxed heavily but i never stay in one i dont pay any part of the tax the hotels pass along. Yet if all hotels are tax exempt in my state, then I have to pay more in taxes to make that up. In short, your example assumes the ultimate consumers and taxpayers are one and the same which may sometimes be the case but not usually.
That's why increases in cigarette taxes and other sin taxes are often the first to go up, as are taxes on things like hotels. The locals who don't smoke or stay in the local hotels get the benefit of the tax income without having to pay it.

Edited to correct an embarrassing number of typos.

 

[convertedpatsfan]

The failed referendum was for $1.15B in taxpayer money for a stadium for the Chargers. Yet Spanos will pay a $550M relocation fee (almost half the cost of the proposed stadium) just to **** the city of San Diego.

Spanos will probably make more money in LA from corporate sponsors and suites. But they'll be the Jets to the Rams' Giants, second-class citizens in their own homes for a fan base that doesn't trust either team to stick around long-term.

 

[DaBruinz]

OK, I'll bite.....just because a company can pass along the tax hit doesn't mean that giving that company a tax break doesnt increase the tax burden on other taxpayers. If all hotels are taxed heavily but i never stay in one i dont pay any part of the tax the hotels pass along. Yet if all hotels are tax exempt in my state, then I have to pay more in taxes to make that up. In short, your example assumes the ultimate consumers and taxpayers are one and the same which may sometimes be the case but not usually.
That's why increases in cigarette taxes and other sin taxes are often the first to go up, as are taxes on things like hotels. The locals who don't smoke or stay in the local hotels get the benefit of the tax income without having to pay it.

Edited to correct an embarrassing number of typos.

The Consumers and the Taxpayers ARE one and the same. They ALL come from the same population. Just because one happens to be from another state doesn't change anything when it comes to the FEDERAL Taxes or even the Property Taxes Business may or may not pay. Those particular taxes get put straight into the cost of the product.

You're conflating the "sin" taxes with Federal Corporate Taxes. And, as is often the case, the taxes for staying in a hotel are broken out separately and is different from the Property Tax or Corporate Tax that get's automatically figured into the price.

A perfect example is the "Fees and Taxes" on a rental car.
The ones that get broken out are the usage taxes. The ones you don't see are the ones directly figured into the price. Which are the property taxes and corporate taxes.