Using the same rationale that wage earners get to keep all of the income and payroll taxes that were previously withheld from their paychecks, regardless of what the effect is on their Purchasing Power, the same is true for the business owner.
For small businesses, the taxes on the corporation's profits are passed along to the owners of the business through a K-1 form. This income is shown on the 1040 and is taxed at the business owners' own personal income tax rate.
Since wage earners get to keep their income and payroll taxes, so do the business owners. Do you really think that business owners are going to give their employees their "full" paychecks and not do the same for themselves? They will both need the money to pay the inflated prices that are going to be charged in the market.
Whether they do or not is beside the point.
That wasn't lewis' claim. He claimed he needed to charge his customers 30% more just to maintain his purchasing power. That simply isn't true.