[bencarter]

I'm not saying the government isn't adding a lot of taxes, I just doubt we'd see prices go down. If people are used to paying $5 for a cheeseburger, they'll keep paying, and the compnay gets the extra.

[Man50D]

I'm not saying the government isn't adding a lot of taxes, I just doubt we'd see prices go down. If people are used to paying $5 for a cheeseburger, they'll keep paying, and the compnay gets the extra.

You're not considering one very important factor called competition. It will only take a small number of companies in an industry to pass on the cost savings to their customers that will either force the remaining companies to do likewise or lose business.

[bikerman]

Who pays $5 for a cheeseburger???

[spikeytx86]

would some companies keep the extra profit? sure. But it just takes one company in every industry who is looking for increased market share and now has 20% of wiggle room in dropping his prices and then my friend the free market works her magic.

Even if they drop prices by 10% and pocket the rest we still benefit from it.

[TexasTransplant]

>>>>"If people are used to paying $5 for a cheeseburger, they'll keep paying, and the compnay gets the extra."<<<<

If that is the case I or someone like me would open a Burger Joint and sell them for $4.75.
If they don't lower their price, they are not competitive, they go out of business.

TT

[AFreeBird]

If people are used to paying $5 for a cheeseburger, they'll keep paying, and the company gets the extra.

Right up until a competitor figures out that he can sell more cheeseburgers by lowering his price, which of course will force the guy selling fewer cheeseburgers at $5 a pop, to reconsider his pricing structure.