True in theory, but in practice the tax increase can act as a collusion signal for the entire industry to raise prices all at once. Arguably food price inflati

True in theory, but in practice the tax increase can act as a collusion signal for the entire industry to raise prices all at once. Arguably food price inflation has been like this. Clearly the market can withstand it if everyone moves together. All this is not to say that taxes should never be increased of course.