I honestly have not been able to decide which I like better--the NRST or the Flat Tax. I see pros and cons on both sides. However, this argument is silly, IMHO. How many people actually believe that a corporation, once it has gotten people used to paying a certain price for an item, will actually lower their prices? The reality is that they will just pocket more money.
Re: the 'Flat Tax':
The Flat Tax is still an Income Tax.
Income Taxes are totally flawed from their inception.
If you go out in the pasture and find a big, fat juicy cowpie, then flatten it, what do you now have?
A flat cow pie...
I do, assuming said corporation wishes to stay in business and not lose to its competitors.
Lets just assume for the sake of argument that the NRST would reduce possible price at retail. If it does then business have 2 options available.
1) Lower prices
or
2) Go out of business when their competitor lowers prices.
There is no 3rd option.
Let me in on a little secret. There is always someone willing to make few dollars less to make a sale. If Nissan passes on the savings they get from the NRST, then Toyota and Honda and GMC and FORD and Chrysler will have to follow suit to compete.
Hell, if I was the owner of Ford, the very FIRST thing I would do the day the hated income tax went away (after firing the tax lawyers and accountants, of course) would be to go on TV and announce: "Come buy our automobiles! With the end of the income tax we are cutting the cost by 30%!"
It is called the free market. A leaner, hungrier company is always in the shadows.
... until the business down the street cuts their price and takes a big chunk of your customers.
IN a free market economy with the gov't out of the way via taxes it becomes truer "supply and demand" market. If the consumer thinks the price on a certain brand is too high he will select a different brand thus forcing the higher priced brand to reduce his prices in order to compete...that or go out of business.
Again, supply and demand...gas goes up, gas goes down...
think about it...
10 years ago a DVD player cost hundreds of dollars...today, 100-200 dollars, max...supply and demand...competition...
hey, it really works!
It doesnt matter what price people are used to paying. When the product next to it on the shelf's price goes down, its price will go down. The invisible hand of supply and demand will bring the price down.
Yes exactly because corporations pay no attention to market forces whatsoever.
Geesh, do you have any clue at all how a price for a good is derived?