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Yet these taxes are always represented in the final price of the product. Rich people have power, they can go take those taxes money from whatever they want:
by traveler01 6y ago
Yet these taxes are always represented in the final price of the product.
Rich people have power, they can go take those taxes money from whatever they want:
- Price of their products
- Their employees wages
- Whatever the hell they want to.
And this is happening in a socialist country. If I'd guess any better in countries like the US this would be way worse for everyone.
Taxes aren't the answer for all problems like many people like to think they are.
- mafuy 6y agoThe point was: If they have the power to increase prices because taxes increased, then why do they not increase prices because they want to earn more? If they do have the power, they should get as much as possible! And that's the thing: Their power is limited to what is possible. That's the free market at work actually. Increasing taxes would certainly increase prices, but not fully compensate.
- ddxxdd 6y agoThe answer to your query is supply and demand; if taxes go up, then (ceteris paribus) the supply curve shifts upward. It costs more money to make the same product, so either the price must go up, the quantity sold must go down, or some combination of the two. In the case of a redistributional policy, that upward supply shift is matched with an upward demand shift, and prices will definitely rise to at least partially reverse the effects of the taxation-based redistribution.