rfb@cmu-cs-h.ARPA (Rick Busdiecker) (07/06/85)
re: Emporers new clothes If there were no competition in the market place then "ayers@convexs.UUCP" would be correct in assuming a direct connection between higher corporate taxes and higher prices. However, because there is competition, there is not a clear link. Higher corporate taxes mean that in order for the corporation to maintain profit levels they must increase prices. The consumer must then pay higher prices IF THEY BUY FROM THE CORPORATION! The same product may be available from smaller companies in which case, the corporation will either have to (a) decrease its profits to remain competitive, or (b) raise prices to keep profit levels, and lose some of its customers. Rick Busdiecker rfb@cmu-cs-h.arpa
ayers@convexs.UUCP (07/19/85)
/* ---------- "Emporer's new clothes (Wrong-O Mary" ---------- */ re: Emporers new clothes If there were no competition in the market place then "ayers@convexs.UUCP" would be correct in assuming a direct connection between higher corporate taxes and higher prices. However, because there is competition, there is not a clear link. Higher corporate taxes mean that in order for the corporation to maintain profit levels they must increase prices. The consumer must then pay higher prices IF THEY BUY FROM THE CORPORATION! The same product may be available from smaller companies in which case, the corporation will either have to (a) decrease its profits to remain competitive, or (b) raise prices to keep profit levels, and lose some of its customers. Rick Busdiecker rfb@cmu-cs-h.arpa /* End of text --------------------------------------------- */ Right -- tell it to the oil, phone, and "public" utility companies... blues, II (This is reality, Greg)