[Bigun]

It just does not sink into fairtaxers that these 'unproductive price increases' are business profits.

I am sorry but that is simply incorrect. The costs in question are costs imposed by the tax system itself and, as such, CANNOT be profits.

Fairtaxers know that in competitive markets when costs are removed market forces take over and force price drops if market shares are to be maintained.

[Always Right]

I am sorry but that is simply incorrect. The costs in question are costs imposed by the tax system itself and, as such, CANNOT be profits.

No they are not. They are price markups. Compliance costs were not mentioned or considered. It is assumed that because the inputs are cheaper, that stage of production can reduce their markups more. But those markups are simply the profit. I know this will not sink in no matter how many times it is explained.