If I have an income of 100 dollars and a tax of 10 dollars, then I have 90 spending dollars after taxes. I have a take home of 90 dollars that I am used to receiving.
If Company X produces a car that costs 100 dollars and it charges that 100 dollars instead of 90 dollars because 10 dollars represents imbedded taxes, then some car company might charge 90 dollars for the car if the 10 dollar tax is removed.
If this is incorrect, I would appreciate it if someone would spell it out in simple terms for a simple mind.
Prior to the tax removal, my 90 dollar income would not pay for the 100 dollar car. After the tax removal, my 90 dollar income might pay for the car if the company responds to tax cessation by reducing it's price to 90 dollars.
That's quite a good observation that some of the Status Quo folks on the thread certainly miss.
Quite right.