And the market forces have nothing to do with it?
For example, absolutely no one will sell their products at a price to where they are just making pennies per sale? That doesn't happen?
Of course, we can forget about car sales for this discussion, because it doesn't follow the market laws--regulations keep that industry from following the norms.
If just one company has had an increase and they are trying to compete than yes, they would likely eat the increase, depending on how much it is, but this would be an across the board increase on anyone using steel and aluminum. So there would very likely be an across the board increase in retail price on anything using steel or aluminum.
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Last edited by bsm2; 03-13-2018 at 09:19 PM.
That's not what I mean. What I'm saying is that if all the copier companies suddenly get a tax decrease, those savings will trickle down to the purchasers. The reason is because they're all trying to win business from their competitors. So if Joe's Copiers is only making $500 per machine, and suddenly they're able to make much more money per machine, without changing their prices, then it stands to reason that they WILL cut prices instead of pocketing the money. Because the sales guy at Dave's Copiers got the same tax break, and he's been trying for years to get Joe's Copiers' customers and now all of the sudden he's able to offer the same machine at minus $500. So Joe's Copiers either has to cut their prices as well, or they lose the business.
BTW - that's not exactly how trickle-down works, but it's part of the concept. I'm just curious as to how someone could understand the concept of tariffs raising prices and not understand how tax cuts can lower prices. I'm kind of amazed at that.
... then again, I'm not. It's obvious, at this point, that BullShitMan had no real understanding of this at all--he was just repeating what he'd heard on channel 5.
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The actual cost to manufacture doesn't change just because there has been a tax decrease, so it is unlikely that the retail prices will drop, This tax decrease will be funneled off to share holders in the form of higher dividends. Just like when the banks were bailed out for their incompetence they sent a lot of the money to executives as bonuses.
Yes it does. Part of the cost of manufacturing is taxes. It's part of the cost of everything. Every company pays taxes, and the taxes affect the prices, the pay to employees, and the money the shareholders make. This isn't difficult. It's economics 101. If the taxes go up, the cost of manufacturing, or selling, or stocking, or anything else (or everything else) goes up. You've demonstrated you understand this. How can you not understand that the cost also goes down when the taxes go down. And if lower taxes gives a company a way to bring prices down, and give them an edge over competition, why wouldn't they lower their prices?
Or are you saying that an entire industry will agree to pass that money on to shareholders and not use it to increase their market share?
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