> Most corporations don't make extraordinary profits. They make enough to stay in business, and if you tax them too heavily they will either raise prices or just close.
Corporate taxes are levied on profit, not revenue. Raising corporate taxes would not cause any businesses to fail. And businesses can only raise prices if the market will bear those higher prices. Prices are set based on what customers will pay, not on what profit margin the company wants.
> Raising corporate taxes would not cause any businesses to fail.
It is a little more nuanced than that. Raising corporate taxes can make it harder for businesses to succeed if it sharply reduces after-tax profits or discourages investment. OTOH, if done well, the incremental tax revenue can create a healthier business environment overall.
Corporate taxes are levied on profit, not revenue. Raising corporate taxes would not cause any businesses to fail. And businesses can only raise prices if the market will bear those higher prices. Prices are set based on what customers will pay, not on what profit margin the company wants.