Question

Since business taxes increase the cost of doing business, and these lead to higher consumer prices and fewer investments, would both business organizations and consumers benefit from lower business taxes, or would only business organizations benefit? Explain.

Answer 1

yes this is true that business taxes increase the cost of doing business and these lead to higher consumer prices and fewer investments.

Yes, Both business organizations and consumer benefits from lower business taxes. Lower business taxes means more profits for firm. So, business organization benefits from it.

When tax is imposed on firm then, they pass the burden of tax to the consumer in the form of charging higher prices. So, lower business tax means lower burden on consumer. And consumer benefit from it.