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To: Marine_Uncle

I appreciate your open mind throughout this thread. However, you missed the point of my question. The point was that if the evil corporations don't lower their costs with the lower tax rates, then their markets will be wide open for new entrants to take their market share. If no one else takes the risk and enters the market, then the selling price is what the market is willing to bear.

Don't worry, your situation will get better. I'll keep you in my thoughts.

Have a good weekend, it's Miller Time!


193 posted on 11/19/2004 2:29:23 PM PST by CSM
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To: CSM

"I appreciate your open mind throughout this thread. However, you missed the point of my question. The point was that if the evil corporations don't lower their costs with the lower tax rates, then their markets will be wide open for new entrants to take their market share. If no one else takes the risk and enters the market, then the selling price is what the market is willing to bear.
Don't worry, your situation will get better. I'll keep you in my thoughts. Have a good weekend, it's Miller Time!"

And I do appreciate what you said. And I agree in principal.
The issue I tried to address, is when major players in some given market get together and say, hey this is great, we all keep the current prices, and reep the gains.
And we must try to comprehend, often it takes many years to put a given manufacturing process into place. A given process may for instance entail making loans from banks to the tune of lets say 5 billion US dollars to implement a new Integrated Circuit Process line. The pay off point for that line given a given cost/price curve and demand may take some five years or more to break even. So would we expect the company to just lower it's prices on product that flows from that new line? This stuff is complicated.
The company wouldn't just be able to "pay off the bank", because all of a sudden it no longer has to pay corporate taxes. Perhaps what I or someone else should have tried to stress, is if such a tax restructuring was to take place, that we should not think new business will sprout up overnight, and that current priceing would plumet immediately. It could take years for this to develope.
As for things getting better for me, I do believe that is in the good Lord's hands. But thanks for your kind thought.


195 posted on 11/19/2004 2:50:14 PM PST by Marine_Uncle
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