Competition! Yes. You mean like the many industries who members agree not to let a price drop below a certain level? You must remember, because the corporations sure will, that people will
expect to pay the same price only 30% higher.
But, anyway, that is a theory. It is not a certainty. I think it not wise to upset the entire structure of the country based on that sort of thing. Once such a change is made, there will be no going back.
Dr. Jorgenson (Harvard Business School) determined that 20%-30% of the price of a product was the amount 'hidden' therein to cover the producer's Income Tax (and compliance costs).
He did? I have forgotten how many payrolls I've written for business in my 30 years in programing. What cost?
Everything is done by computer. The payroll clerk doesn't spend more than moment of her time doing a payroll (unless there are errors). In some companies I've serviced, the PR clerk anly came in twice a week.
Then, after taking taxes out, which is a automated function, the clerk posts the fed and FICA amounts to the bank account for that purpose and makes the deposit. At the end of the quarter a series of reports are run, without employee supervision, and mailed to the IRS.
What costs did this dude think he found that could possibly increase each manufacture product item 20%-30%? Did you check his methods and numbers, or did you take his word for it?
What costs did this dude think he found that could possibly increase each manufacture product item 20%-30%? Did you check his methods and numbers, or did you take his word for it?
Why don't you check his numbers and ask Joprgenson for youself.
These PDFs contain the results and description of methodology:
The Effects of Fundamental Tax Reform and the Feasability of Dynamic Revenue Estimation, in Joint Committee on Taxation, Congress of the United States, The Modeling Project and 1997 Tax Symposium Papers, Washington, U.S. Government Printing Office, November 20, 1997 (with P.J. Wilcoxen), pp. 130-151.
The Economic Impact of Fundamental Tax Reform, in M. Boskin (ed.), Frontiers of Tax Reform, Stanford, Hoover Institution, 1996, pp. 181-196; reprinted in Joint Economic Committee, Congress of the United States, Roundtable Discussion on Tax Reform and Economic Growth, One Hundred Fourth Congress, First Session, 1996, pp 98-112.
Lifting the Burden: Tax Reform and US Economic Growth; Dale Jorgensen, Harvard University; Office of Tax Analysis U.S. Department of Treasury, Aug 2 2002