Unfortunately you have to actually have faith that a business would actually reduce it’s price if it’s tax rate fell. I find it really hard to believe myself. I can see the business pocketing the difference and giving it’s CEO a huge bonus.
It’s an interesting idea and the only ‘new’ idea out there, I would still vote for someone like Cain even if this is what he thinks is the answer, because he supposedly cannot enact this type of tax by himself.
Unfortunately you have to actually have faith that a business would actually reduce it’s price if it’s tax rate fell. I find it really hard to believe myself.
This poster probably does not work for a private manufacture because if he did he would have heard of the term....competition....the industry I worked in for 30 plus years had five or six companies doing the same thing and pricing our products all based on the same cost factors. If we decided to “pocket” the difference in taxes we would lose our business in 24 hours. The market will take care of the difference.
That might be true for a business that had a monopoly, but, keeping one’s price high while the competition lowers its price to grab market share would be a bad business decision.
Wholesale and Retail prices will drop, and business will re-migrate back to the US creating more jobs. Its the simplest, fastest way to rev the economy.