[Remember_Salamis]

"What makes anyone think the wholesaler, retailer or distributor would ever lower their prices to reflect the taxes they no longer pay for the product. It will never work as long as there are people trying to make more money(a good thing). I just do not think anyone will benefit from lower prices, they are figured in right now and if this tax plan goes into effect, the profit margins for the seller will increase."

-- Have you ever heard of the "elasticity of demand"? Competition? Your theory only holds water in a cartel system where competition is artificially extracted from the market. Where there is no Cartel, and there isn't a COERCIVE monopoly, PRICES WILL DROP.

[Your Nightmare]

I know you've heard of supply. What happens to prices when demand increases and supply can match (which is bound to happen in some markets if demand is increased across the board)? You get inflationary pressure.

Producer prices may drop a certain level, but consumer prices won't drop the same amount across the board.

[satchmodog9]

I think you are right as far as Walmart and HomeDepot type stores are concerned. Auto manufacturers, commodity items, insurance companies and large ticket items like appliances will probably stay the same. So yes, you are correct, I should have stated my position better.