[CSM]

I never disputed the price effect of a sales tax. What I am trying to understand is why the claim was made that the cost of business will go up AND the price to the customer will rise.

AR claimed that in order to offset the cost increases, he would have to lower wages, pay less for supplies, or any number of offsets. How does his cost increase? That is the question I am asking.

With regards to the price effect, do you assume that population does not grow and the housing needs remain constant?

[Iwo Jima]

AR claimed that in order to offset the cost increases, he would have to lower wages, pay less for supplies, or any number of offsets. How does his cost increase?

I'll let Always Right speak for himself. But what I say is that when your sales are in the tank, you have to lower wages, pay less for supplies, etc. to try to stay in business. The damage done to the income side of the ledger will require serious pruning on the expense side of the ledger.