This is wrong. The tax will just be passed on in the form of increase spreads. It's like saying that if you add a 1% tax on food that all grocery stores will g

This is wrong. The tax will just be passed on in the form of increase spreads. It's like saying that if you add a 1% tax on food that all grocery stores will go out of business because their margins tend to be really small (around 1%). Clearly that's not what actually happens.