Text 825, 41 rader
Skriven 2006-06-03 07:38:50 av Danny Ceppa (1:138/666.0)
     Kommentar till en text av John Massey
Ärende: Tax breaks
==================
On 02 Jun 06  16:57:53, John Massey got back to Danny Ceppa 
-> Re: Tax breaks

 JM>> 23%. The tax would REPLACE the 23% +/- that would be removed from
 JM>> current taxes imbedded in all the products you buy. An Item that
 JM> cost
 JM>> 1.00 dollar today would still cost 1.00 dollar.
 
 DC> And the guarantee that that is how it is going to work
 DC> is where, exactly?

 JM> If Sherwin Williams and Pittsburgh Paint can both produce paint for
 JM> 23% less than they currently can, don't you think one will try to under
 JM> cut the other?

Not if they can make their sales target with their current 
pricing structure.  After all, one great method of increasing 
profits is to cut costs, not selling prices.  


 JM> That is a basic economic fact taught in all business colleges.
 JM> The only way prices would not come down is if all the car manufactures
 JM> selling cars in the US, get together and agree not to pass the savings
 JM> along. Do you really think that will happen?

Absolutely.  Pricing is not the major selling point for cars.  If 
it was, the original VW Bug would have had a much larger share of the 
market.  

 JM> Take that same principle and apply it to everything manufactured in
 JM> the US. Do you think that DeWalt and Delta + 20 other manufactures of,
 JM> say power saws, will all get together and conspire to keep what is a
 JM> now an extra 23%?"

There is no incentive for them to cut their selling price.  Price 
only comes into play when 2 entities are selling the exact same 
widget.  But, even then, other marketing tools come into play.  


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