Andylusion
Platinum Member
By slowly you mean never when it comes to a decrease in taxes.Based on your claim its the perfect question. You have no answer eh? You might want to think about your claim.That's a stupid ass question and you know it.So why didn’t prices drop after the huge corporate tax cuts?Corporate taxes are a thinly veiled Federal sales tax. Do you actually think businesses won't pass that cost off to to the consumer ?
Price hikes happen fasts. Price drops always happen slow. And the reason for this should be obvious to everyone.
If your company is needs money for a project, and you increase taxes... you can't just hold off. You can't wait until you are in bankruptcy. You have to pass on the cost immediately.
However, price drops, happen slowly over time. There is no rush to drop prices.
There is however, another reason prices have not fallen. Namely the increasing costs of required benefits.
No, typically when costs do decrease, eventually it shakes out in lower prices, unless there are other cost effects... in which case you tend to see a slower increase in price, because lower taxes offsets the cost effects.
But typically, yes, all things being equal, the result is lower price.
Honestly, it's ridiculous to suggest otherwise.
Eventually someone is going to determine they can undercut the competition, by passing on lower prices. When that happens, the rest of the market has no choice by to lower prices as well.
Now if you keep the tax there, then that is impossible.
This is business 101 dude. It's not like it has not been practiced for thousands of years.