To: Principled
I'll start... I assert that all of these benefits will occur: 1) lower prices
2) higher wages
3) improved ROI
LOL. If wages are higher how do prices go lower? Again, unless employees are willing to accept lower wages to match the taxes they are savings, the prices of goods will not be that much lower, at least not enought to match the added sales tax. You are trying to count benefits on both ends.
To: Always Right
You are asking the wrong questions and using a poor example with the air line industry which is essential government own as it is.
Business can either decide to sell cheaper products or they may decide to offer 'better' products, actually increase cost of production.
Either the flat tax or the NST will reduce the cost of compliance, and those savings will be passed on to the marketplace, which may or may not mean a change in prices.
142 posted on
04/17/2003 11:08:37 AM PDT by
JohnGalt
(Class of '98)
To: Always Right
. If wages are higher how do prices go lower? Glad you asked.
Suppose a company realizes savings of $1000.
The company reduces prices in an amount that uses up $400
The company increases wages in an amount that uses up $350
The company increases ROI in an amouont that uses up $250.
There. $1000 of tax savings used to do three things:
1) lower prices
2) increse wages
3) improve ROI.
Jeez. That was easy.
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