PDXPLT
join:2003-12-04
Banks, OR
1 edit | reply to DialupFool
Re: Typical
said by DialupFool :
Ummm no. We will pay higher taxes. Businesses DO NOT pay taxes. They simply roll up the cost in the product they sell or service they provide. If you think different your living in a dream. I guess you failed Economics 101. 
While this line is an oft-repeated simplist platitude spouted by right-wing talk show hosts, anyone who's passed freshman microeconomics should know it is not this simple. Just because the cost to produce a good increases, does not mean that the price a seller can obtain for the good will increase by an identical amount. Saying so ignores the effect in the market of the resistance on the part of buyers to higher prices.
Typically, an industry-wide increase in cost (from, say, higher price for raw materials or increased taxes) results in somewhat higher prices, less goods sold, and less profits; i.e., both the consumers and shareholders bear the burden of the cost increase. |
