Everybody always says this. Companies will raise prices to offset taxes IF THEY CAN but that depends on the elasticity of demand for the product. Some products, if they raise prices, consumers will stop buying or find alternatives for. Then their choices are to cut costs or lose money.
Thank you very much, Ichabod1, for inserting the science of economics where it is much needed.
Those of us who have been involved in product/marketing/pricing decisions are fully aware the the price elasticity of demand is a REAL THING--a very predictable and dependable result of price changes in the marketplace.
Larry Kudlow was on Newsmakers, on CSpan, this pm.
FYI, saying that the Trump Repatriation capital is coming in for 2018,
at 750 BILLION DOLLARS!
Kudlow couldnt recall, off hand, what the Joint Tax Committees numbers were, but said that amount has got to be 3x what they projected!
He added that money, by the way, is going back into Wages, Bonuses, Dividends, Share Buy Backs and Capital Spending.
He disputed that the US economy is on some kind of sugar high, when Nancy friggin Cook (a Politico reporter) said... Wont the tax reductions and regulations all Peter out????? (Gawd)
The Repatriation is Permanent, and to remember all of this was/is conceived over a term of FIVE years, not One or two. He said our current First Quarter is a little soft, due too the Government Shut Down that he called a glitch, but the stock market is good, consumer confidence is up, the value of the dollar is high. etc.