Lower business taxes = lower manuf. costs = cheaper goods

Discussion in 'Politics' started by Inthemiddle, Sep 25, 2012.

  1. Inthemiddle
    Offline

    Inthemiddle BANNED

    Joined:
    Oct 4, 2011
    Messages:
    6,354
    Thanks Received:
    674
    Trophy Points:
    0
    Ratings:
    +674
    Or so the wingnuts on the right would like to have us believe. In truth, a company doesn't pass such savings on to the consumer. They will charge the consumer exact as much as the company calculates is ideal to maximize revenue through the balance of supply and demand. Of course higher prices will lead to reduced unit sales, and lower prices will increase sales. The trick is to strike that right balance that will maximize overall revenues.

    Let's take the new Iphone 5 for example. The manufacturing cost of this item is almost $25 less than its predecessor. Yet Apple is selling it at twice the price. So why should we expect lowering taxes on businesses to benefit anyone, other than the owners?

    http://money.cnn.com/video/technology/2012/09/24/t-ts-iphone-5-teardown.cnnmoney/index.html?source=cnn_bin
     
  2. beretta304
    Offline

    beretta304 BANNED

    Joined:
    Aug 13, 2012
    Messages:
    8,664
    Thanks Received:
    73
    Trophy Points:
    0
    Location:
    A Saner Place
    Ratings:
    +73
  3. BlindBoo
    Offline

    BlindBoo Gold Member

    Joined:
    Sep 28, 2010
    Messages:
    19,621
    Thanks Received:
    2,195
    Trophy Points:
    245
    Ratings:
    +4,394
    Bullshit. Doesn't mean lower cost for consumers or wage increases for workers, it mean greater profit margins. Just like NAFTA.
     
  4. beretta304
    Offline

    beretta304 BANNED

    Joined:
    Aug 13, 2012
    Messages:
    8,664
    Thanks Received:
    73
    Trophy Points:
    0
    Location:
    A Saner Place
    Ratings:
    +73

Share This Page