Take econ 101 sometime.
Yes, this is in prices. Assets that are tied up in useless (unprofitable) holdings to avoid taxes means that the productive assets have to produce more income to compensate for them. That means higher prices to gain higher return on investment.
You free up all of that captial, and you don't need as high of a ROI in order to make using it worthwhile, which means operating on lower profit margins, and less cost to consumers.
Interest is a deductible expense for businesses.
Which only means that they don't pay tax on it. Interest is still additional outlay which goes into ROI calculations.
Take econ 101 sometime.I have, what does you econ 101 book say about corporate income tax incidence? What does it say about inserting a >30% wedge between the value and cost of a good?
Which only means that they don't pay tax on it. Interest is still additional outlay which goes into ROI calculations.And it won't under the FairTax?