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To: Mr. K
it would still be another 30% ADDED to the price of goods at the store

yucko

Again your wrong. The cost of goods would fall because the cost of complying with the tax code would disappear and the cost of paying the taxes (which really are paid by the producers customers and eventually by retail customers) would disappear.

Businesses pay NO taxes. Every penny of them are paid by the retail consumer in the price of product and services. With the removal of these taxes (and the cost of complying with the code) the raw materials and end products are cheaper at all levels.

Some say (and you might) that while this is true, greedy businesses will just not lower the price and keep the extra for additional profit.

Wrong.

That can not be done in a capatlist economy. Competition will require the lowering of prices. All it takes is 1 business to lower the retail price and ALL must follow or die.

198 posted on 02/11/2005 12:03:36 PM PST by Phantom Lord (Advantages are taken, not handed out)
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To: Phantom Lord

where did you miss my point- WHATEVER the price (even if it becomes lower) will have about 30% added to it for the new tax PLUS local sales tax

there is a huge underground economy growing in Canada for that very same reason.


209 posted on 02/11/2005 1:13:37 PM PST by Mr. K (this space for rent)
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