Do income taxes increase the cost of a good?Principled:
Of course I may not get what I want for my product, but I'm sure going to try. I can anticipate tax expenses pretty well and try to recover them.That statement proves the answer is no.
If you have to "try" to get what you WANT because of taxes and you have to "try to recover them" there's nothing stopping you from trying TO GET WHAT YOU WANT anytime...regardless of taxes.I assure you that I increase the price of my service to allow my after-tax return to be what I require.
LOL! Gee if it's that easy I would simply "require" more and increase my price...Oh but wait, If I do that I'll have to raise my price even more because my taxes would be more.
You're lost again.
That statement proves the answer is no.
No, it doesn't. It shows that even if I don't get what I want, I may get some of it - that I may recover some of my anticipated reductions in return... which is what I said.
Beyond that, the income taxes of a retail business are only a small part of the taxes and tax costs in the price. Every business in the chain of production passes these costs upstream to retail. That would include business income taxes, EE payroll taxes, compliance costs, copier lease expenses, retained earnings for future investment, et al.
It is the great confusion wrt economic theory which weakens the arguments of this new tax scheme.