Every mfgr. wants as much market share as they can get, and as soon as one HINTS of a price cut, the rest will match or beat it. GUARANTEED!What's stopping them from doing that now?
Maybe every business wants as much as they know they can handle. Regardless of the tax structure, taking on more than they can handle can cause dissatisfied customers and can be devastating with long lasting results.
A race to the bottom is sure death for any company joining the race.
What I'm talking about is after the tax is enacted, all embedded taxes are eliminated.
This will reduce the cost of doing business by around 20-30%, to everyone. They can either decide to keep their windfall, or reduce their prices BACK to what their profit margin was to begin with (a la the airline industry).
Nothing is stopping them from doing it now, and there is no "race to the bottom" (whatever the heck THAT means), except for prices.