To: Your Nightmare
Maybe you could tell me how much corporate tax and compliance costs show up in the price of GM's cars.
Depends on the model ;) .
They lost $8.6 billion last year. Why didn't they just raise their price to cover all their costs, including compliance costs and all the tax costs of all of their suppliers?
Perhaps they tried, and that's precisely why they lost money. Overpricing = reduced sales = loss for the year. It's called price elasticity of demand.
You also miss the point that corporate tax and compliance costs impact all of the manufacturers in substantially the same way, not just in one particular company. If 20% of the price of a car is tax-related, it doesn't matter if one company loses money while another makes money - the overall price of a car is still 20% attributable to embedded tax-related costs.
To: BubbaTheRocketScientist
It's called price elasticity. Look it up.
411 posted on
02/22/2006 3:07:35 PM PST by
balrog666
(Irrational beliefs inspire irrational acts.)
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