With moderate elasticity, price cuts can sometimes yield higher profits, as long as your competitors don't follow your action. Usually, your competitors do, there's a price war for a while, and then everyone realizes they have cut their own throats, and prices go back up to more profitable levels.Game theory. Businesses don't act without expecting their competitors to react.
If you're in business and you're waiting for the government to do something across the board for all businesses before you think you can compete you're in big trouble...even if the government does act.