Quote:
Originally Posted by Ghoulish Delight
Then you disagree with the generally accepted rules of economics.
|
Maybe so. I meant to add to my original post that the passing on may not be 1:1, but it will be significant.
Also, the passing on may not be direct either. Big Company A gets hit with a 10% increase in their taxes which results in a 2% overall increase in bottom line costs (I am using hypothetical numbers here). They may only be able to pass on 1% (half the additional burden) on to consumers. Then they extract another .5% from their vendors who must then tighten their belts in the form of layoffs or other such economic impact, another .25% in the form of internal layoffs, and the last .25% in the form of lower dividends to their institutional stockholders (read: your and my retirement funds).
There you have it: all 2% of the increased tax burden passed on to the consumer.