That's the dumbest thing I've ever heard. Prices are set by the market equilibrium.
You changed the context. Why am I not surprised of that coming from you.
Your context... if a business can't keep it's price low enough it will be disadvantaged by competition in the market. CEO/business owner thinking: "My costs are X and I want 50% profit, unfortunately my competitors are selling for Y and if I sell at Y I'll only make 10% profit -- 10% is better than zero because nobody will pay X.
Back to the original context. If the business cannot recoup it's cost via setting the price the business goes bankrupt. Taxes are a cost and must be recouped and that is accomplished by adding the tax cost to the price of the product.
Regarding your intentional change of context... "Your Nightmare" is that you're your own worst enemy. It must really suck being you.
Read the tagline.
You changed the context. Why am I not surprised of that coming from you.How did I change the context? You people...I swear...
Back to the original context. If the business cannot recoup it's cost via setting the price the business goes bankrupt.And they do, all the time. And this happens because the business couldn't set their own price. That's a function of the market equilibrium. This is basic microeconomics.
Taxes are a cost and must be recouped and that is accomplished by adding the tax cost to the price of the product.Taxes and costs are only recouped if the business can keep them below the market price. If they can't, they lose money. Again, businesses lose money all the time. If they do it for too long they go bankrupt. In your world, no business goes bankrupt, they just raise their prices.
Regarding your intentional change of context... "Your Nightmare" is that you're your own worst enemy. It must really suck being you.What change of context? Damn... You guys are a bunch of kooks.
How did I change the context? You people...I swear...
You know full well. On the outside chance that you don't know how you have still discredited yourself. Unintentional ignorance discredits you or intentional manipulation discredits you -- you choose.
My contest was the business must add up all the cost and set the price to recoup the cost.
Your context was inanely obvious. Your context was that if the price is too far above the competitors prices the business has a choice to bring the price down or keep the high price and go bankrupt.
Taxes and costs are only recouped if the business can keep them below the market price. If they can't, they lose money. Again, businesses lose money all the time. If they do it for too long they go bankrupt.
Yes, That's what I just said. The business must set the price to recoup the cost or it goes bankrupt. Here, see it and read it again: "If the business cannot recoup it's cost via setting the price the business goes bankrupt." It is boringly obvious to say that if the business sets the price ten times higher than its competitors sell the same product for it will not sell in the market and thus go bankrupt.
In your world, no business goes bankrupt, they just raise their prices.
You, he master illusionist, obfuscator and context manipulator exposes himself.
Move along clown.
But they aren't 20 to 30% of the price of a product.
With a sales tax the pricing question would be:
Manufacturer: Can we get XX amount we need to cover our costs and make a profit from a retailer who has to mark it up enough to cover overhead, get a profit, PLUS 7% state sales tax AND charge a 30% federal sales gross payment tax?
Retailer: Can I sell it if I purcase it for his price, mark it up enough to cover overhead, get a profit, PLUS 7% state sales tax AND charge a 30% federal sales gross payment tax?