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Bill Neilson
Premium
join:2009-07-08
Arlington, VA

I just want to see Verizon hit

with a massive fine. Something that makes them step back and wonder if they should do something so criminal (in my eyes that is)

Now, I know....a huge fine means increased prices for us since they will try and find a way to make us pay for it....I really dont know what to say to that....since that thought is probably right


sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

There seems to be relatively irrational belief among many conservatives that corporate fines are simply passed on to consumers in the form of higher prices. It leaves out the obvious - if companies felt they could simply raise prices, they'd do it whether there were fines or not. After all, why leave money on the table? Conversely, if they feel the consumer is already paying as much as the consumer is willing to bear, they'll be very careful about passing on any increases in their own costs, and if there are any new costs (including fines and taxes) they'll probably absorb the bulk of them. Put another way - he who is desperate pays, and he who is more desperate pays more. If the seller's supply curve is more inelastic than the buyer's demand curve, the seller will absorb more of the taxes - even taxes on the buyer. If the buyer's demand curve is more inelastic, the buyer will absorb of taxes, including corporate taxes.


moonpuppy

join:2000-08-21
Glen Burnie, MD

"Corporations don't pay taxes."

Each product or service that any company sells has to make a profit for a company to survive. To that end, you have accountants who factor in all costs to make a product (materials, employees, utilities, support, etc.) Even taxes and regulatory fees are factored into this.

So, for every Verizon phone you buy, you help pay part of the tax bill.

Now, if that is the case, then how will they pay for this fine 9should they get one) for the phantom charges? Easily. That regulatory fee that everyone has on their bill? That will go up by a few pennies at least. Remember, these aren't mandatory taxes called for by the local, state and federal officials but money to help comply with those taxes. You see how the accountants figured out this out?

Why raise base prices when you can blame it on a faceless government agency fee.