One glaring flaw.
Even if the "embedded tax" goes away prices will not fall by the same amount.
Many will see this as an opportunity to increase their profit margin, fund capitol improvements, ramp up research that has been put off, etc.
Small business runs on a thin margin in this country, the lesser tax's may keep them afloat, but not really allow them to reduce prices drastically.
This looks to be incomplete, but a good start.
Of course not.
The shills are double-dipping with this incredible claim.
"Many will see this as an opportunity to increase their profit margin, fund capitol improvements, ramp up research that has been put off, etc."
Therefore an employment explosion would take place. Nothing wrong with that either! Think about it, these actions will increase the need for employees, therefore the leverage of the employee to demand higher wages is increased, potentially a greater benefit that will offset your theory of prices not going down.
Competition is the reality of life for all businesses, and particularly for small ones that enjoy no monopoly. Competition will take care of prices, and the savings on compliance alone will be the economic equivalent of ten major tax cuts all rolled into one.
"One glaring flaw.
Even if the "embedded tax" goes away prices will not fall by the same amount.
Many will see this as an opportunity to increase their profit margin, fund capitol improvements, ramp up research that has been put off, etc."
-- Sure, they can increase their profit margin, but will their competitors? If they don't cut prices and their competitors do, they're going to lose market share! It's called the elasticity of demand. trying to find the perfect 5balance between profit margin and market share.