Guess you have missed tha fact that the thread is about the FairTax. not theoretical profit maximization, demand curves, or anything else that so warms the heart of the two-handed economists.
Your attempts to drag things off-topic does you no credit.
Guess you have missed tha fact that the thread is about the FairTax. not theoretical profit maximization, demand curves, or anything else that so warms the heart of the two-handed economists.Actually, it's about picking apart the FairTax, which is exactly what we are doing. And one of the easiest things to pick apart is the FairTax supporter's inane and simplistic beliefs of how the current system affects prices.
Price effects of the FT are exactly what is being addressed. Those arguing for FT do not grasp the issue of how prices are determined in a market system thus the argument that removing income taxes will lower prices is flawed theoretically. Most of economics boils down to prices.
If you want to argue that prices will go down you must deal with the economic theory which says they won't. (At least from the income tax removal.) I agree as regards payroll taxes at some point but they are in the price equations.
Not only are these issues NOT "off topic" but they constitute the most important aspects of the topic.