3 ms·
this is something that gets thrown around a lot, but its manifestly untrue, if corporations could easily charge more, they would, and they would pocket the diff
by throwaway2048 9y ago
this is something that gets thrown around a lot, but its manifestly untrue, if corporations could easily charge more, they would, and they would pocket the difference as profit.
Taxes in general reduce profit, they do not increase prices.
- conanbatt 9y agoThe nuance of passing down taxes is that it depends on the elasticity, which generally is about the capacity for the consumer to substitute the goods. If you put a tax on tobacco or alcohol, it definitely gets to the consumer. If you put a tax on pork, then people switch to chicken and the producer gets hit.