Immanuel
Gold Member
- May 15, 2007
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So your answer is that manufacturers and retailers eat the tax - by either lowering quality via cheaper materials, lower costs (lay off workers), or lower returns on capital.
Great. Another wealth and income transfer to the government. In reality, supply will shrink as some suppliers decide that it is not worth it to be non-profit. Prices will remain high as consumers compete for fewer goods.
I don't agree with you and yes, that is my answer. Ever been to a Macy's store when they are trying to clear out the winter clothing to make room for the swim suits? "RED TAGS" every where.
Edit: and don't make it sound like I am in support of a VAT either.
Immie