Oh, I see. So if corporate taxes were abolished then prices across the board will come down because corporations no longer have to pay taxes ?
Like hell they would.
So if corporate taxes were abolished then prices across the board will come down because corporations no longer have to pay taxes ?
Like hell they would.
Corporations are interested in increasing profits, not prices.
The first business to lower prices to gather more marketshare from those that figure to gain a windfall will have embarassingly high profits.
Non-competitive prices just mean less profits for those holding out with the higher prices, not more.
If the prices of the goods did not decrease, then it would present a great opportunity for new companies to enter that market. How about it, you up for starting a business and offering a product cheaper than everyone else?
why do you think prices of comparable goods are about the same? ie why do all red-tag levis cost around $40?
the answer to that will tell you why industry-wide cost reductions will result in price reductions...
Cliff - West Des Moines, Iowa
P.S.1 A note to those who bad-mouth the FairTax by falsely claiming that low- and middle-income people would pay more under the FairTax than they pay today under the Income tax System. You are mistaken. Read this... FairTax vs: Income Tax!
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