ANd the input component we speak of is the tax costs that will be eliminated when the income tax is eliminated. So you now agree that the income tax behaves like a vat. Finally!
I stand by the statement: Reducing price by x% in each stage of production does NOT necessarily lead to a final price reduction of the same percent.
We are not talking about stages of production. We are talking about a single business.
The price components I am talking about are the costs that a business has which when added together makes up the price.
As an example, the pizza shop again:
If 20% of his costs are due to buying ingredients, and
20% by rent, and
40% by labor, and
20% by utilities.
That's 100% of his costs accounted for.
If the most that any one of these inputs is reduced is by 9%, then the most that his total can drop is 9%. It is not very difficult math.
Rob did say 9% (or 8) on another thread. I not referring to the comment you quoted.LOL! I can't speak for Rob but like I said, I'm not a mind reader.