Lower business taxes = lower manuf. costs = cheaper goods

[Inthemiddle]

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

 

[beretta304]

Let's ask Obama.

Obama's small business tax cuts, explained - Sep. 24, 2012

 

[BlindBoo]

Bullshit. Doesn't mean lower cost for consumers or wage increases for workers, it mean greater profit margins. Just like NAFTA.

 

[beretta304]

Something tells me that we won't settle this here.

Do Tax Cuts Create Jobs

Trickle Down Economics Theory and Effect