You should check out the effect of oil prices on plastic resins, then you can easily translate that into the price of plastic goods, i.e. instrument panel in cars, and you could put together a better idea of the cost build up in products.
Remember, all companies must be able to pass on their cost to the buying entity (customer) or they will eventually die. Regardless of their margin, their costs must be passed on. As a result you have a tiering effect of all costs and if these costs include tax, then the burden related to tax can accumulate and exponentially grow throughout the supply chain.
Of course, but the tax effect is what is being debated here.
As a result you have a tiering effect of all costs and if these costs include tax, then the burden related to tax can accumulate and exponentially grow throughout the supply chain.
That's where I'm losing you. The tax effect doesn't appear to be very accumulative nor does it appear much larger than somewhere between my example of 10% or OHelix's example of 17%. And of course these aren't even real world examples. My original point was that I have come to believe that you can't have a large drop in prices with the NRST without a drop in wages. Some drop, yes but I don't think it is reasonable to use the drop as any sort of offset of the over-the-couter outlay on goods and services with the NRST.