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Resources != Products; they're talking about taxing things like crude oil and lumber, not milk and eggs.

etjossem 12y ago
We can expect an increase in the cost of inputs for essential consumer goods to be passed on to the customers in the form of higher prices for those products. Dairies, meat processors, and supermarkets are not going to just sit there and take the loss.
- brenschluss 12y ago
  Yet at the same time, the labor gone into processing / handling manufacturing those consumer goods will be cheaper, possibly offsetting that rise in material costs. An increase in resource taxes doesn't necessarily mean an increase in consumer good prices.
  - adventured 12y ago
    The labor will not be cheaper. Just because you tax labor less, does not mean salaries necessarily go down. The cost of labor is primarily a function of supply and demand + overall competitiveness of your economy on the global stage. In fact if you increase the cost of consumer goods by pushing up the cost of manufacturing inputs, you're going to have to pay workers more to maintain the same standard of living. Their cost to drive to work goes up; their cost to feed themselves goes up; their cost to buy a house goes up; etc.
  - etjossem 12y ago
    > An increase in resource taxes doesn't necessarily mean an increase in consumer good prices. Because income tax is taken out of a worker's gross pay, the Ex'tax plan is not going to substantially impact how much companies pay their workers. It will simply increase take-home pay. Assuming it's a revenue-neutral tax shift, three things happen: - Workers with low incomes get a little bit more take-home money every month. - Workers with high incomes get a lot more take-home money every month. - Milk and eggs are uniformly more expensive. That's why this is a regressive move that hurts people with low incomes.
adventured 12y ago
If you increase the cost of natural resources, you are going to increase the cost of milk and eggs.
- aredington 12y ago
  And you make less industrialized, more labor intensive forms of producing eggs or milk more economical than higher industrialized, lower labor forms.

We can expect an increase in the cost of inputs for essential consumer goods to be passed on to the customers in the form of higher prices for those products. Dairies, meat processors, and supermarkets are not going to just sit there and take the loss.

brenschluss 12y ago
Yet at the same time, the labor gone into processing / handling manufacturing those consumer goods will be cheaper, possibly offsetting that rise in material costs. An increase in resource taxes doesn't necessarily mean an increase in consumer good prices.
- adventured 12y ago
  The labor will not be cheaper. Just because you tax labor less, does not mean salaries necessarily go down. The cost of labor is primarily a function of supply and demand + overall competitiveness of your economy on the global stage. In fact if you increase the cost of consumer goods by pushing up the cost of manufacturing inputs, you're going to have to pay workers more to maintain the same standard of living. Their cost to drive to work goes up; their cost to feed themselves goes up; their cost to buy a house goes up; etc.
- etjossem 12y ago
  > An increase in resource taxes doesn't necessarily mean an increase in consumer good prices. Because income tax is taken out of a worker's gross pay, the Ex'tax plan is not going to substantially impact how much companies pay their workers. It will simply increase take-home pay. Assuming it's a revenue-neutral tax shift, three things happen: - Workers with low incomes get a little bit more take-home money every month. - Workers with high incomes get a lot more take-home money every month. - Milk and eggs are uniformly more expensive. That's why this is a regressive move that hurts people with low incomes.

adventured 12y ago

If you increase the cost of natural resources, you are going to increase the cost of milk and eggs.

aredington 12y ago
And you make less industrialized, more labor intensive forms of producing eggs or milk more economical than higher industrialized, lower labor forms.