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Because of this: https://news.ycombinator.com/item?id=22370387 https://news.ycombinator.com/item?id=22370387
by harryh 7y ago
Because of this: https://news.ycombinator.com/item?id=22370387 https://news.ycombinator.com/item?id=22370387
- SkyBelow 7y agoWouldn't the costs be updated to reflect the difference in profit margins. If the tax is 10%, then in cases where the profit margin is razor thin prices would rise by about 10%, but life would otherwise keep on going. If an entire industry would die from such, then doesn't that mean that currently tax payers are subsidizing that industry to keep it alive by having uneven taxes, if the standard of equal taxes is the purposed change?
- harryh 7y agoAre you trying to say that tax payers are subsidizing the entire retail industry? No, that is definitely not the case. Different amounts of value are added at different stages of the product pipeline. These different amounts of value are reflected in different profit margins. Forcing uniformity here via the tax code would be massively distortionary.