The "People's Budget" from Progressive Caucus

[utgibbs]

notice you ignored his valid argument about international competition if only the US has this tax rate.

That simply bolsters my case. I didn't think it needed any more support, to be honest. Nice catch on the Obama GM lock-in. Happened just as I said it would, didn't it?

 

[volinbham]

And an elastic consumer will gladly spend his x on those companies who invest on short term losses in profitability to gain market share thereby increasing long term profitability.

Thanks again! :hi:

(PS - you are not "paying" more; your profitability is less. This is not a value added tax. It is again simply starting from the wrong point of origin which is where your argument falls over).

(PPS - as far as my proof, why do I have to repost world productivity charts, and go over neoliberalism which you know has greatly reduced international trade barriers? That is the freakin' mantra of Milton Friedman: Freedom to Choose.......)

Wait, you can't jump from impacts on one company to entire supply and back when convenient. If we are talking total supply then consumers have less effective buying power if prices are higher (you've told us this repeatedly)

If we are talking single company then supply is often quite elastic - dropping market prices routinely encourages businesses to cease production of certain products all the time - a quite elastic reaction.

Regardless back to the pass through effect. DVDs post which you seized to show indicates corps "pay" rather than pass through discusses relative impact not total impact. Even if we buy the assumption that for all intents and purposes supply is less elastic than demand (which I do not) then we still see pass through to consumers; just not 1:1. Repeatedly, we've asserted that taxes have the impact of raising prices - I've seen few argue that no corp taxes = a true 1:1 drop in prices relative to the tax rate.

 

[volinbham]

notice you ignored his valid argument about international competition if only the US has this tax rate.

which is basically the whole point - if all corps pay the same tax rate then there is still a pass through but any individual company would care less since it is a constant impact for all competitors.

 

[droski]

That simply bolsters my case. I didn't think it needed any more support, to be honest. Nice catch on the Obama GM lock-in. Happened just as I said it would, didn't it?

of course increased taxes making US companies uncompetitive on price with international companies bolsters your case. makes perfect sense to me.