No, cost is not a determination of supply. Supply of manufactured product will not increase unless there is enough demand to buy the product at the PRICE that the product is being sold at. If costs go down, the
sellers may well be willing to sell for less, moving the price downward. Again supply and demand. Again, in a competitive market. However, if not competitive (ie, monopolistic) then all bets are off. Typically proffits will increase. Take for example, the increases in gas prices lately. Supply was up, demand was down, but prices increased. Why? Monopolistic industry which allows the seller to set prices.
Your statement that empirical evidence shows that lowering corporate taxes increases tax revenue would be good news for the Reagan economists, who found just the opposite. What is your bempirical evidence? I have been unable to find any. I keep asking, no one will provide the date of when this happened.
Another case you may want to look at is when w decreased taxes. Deficit again increased due to shrinking tax revenues. Where is the evidence???
I'm not sure what real world examples you are thinking about. One that comes to mind is the one in which yaught makers were taxed to increase the tax income for government and it would come only from the Fat Cats who buy yaughts.
Problem was that the tax only applied to the American yaught makers who were soon all out of business because the Fat Cats starting buying their yaughts from Canadian suppliers instead so the tax revenues, the income taxes and the property taxes all evaporated. The laborers all went on unemployment and the local governments not only did not receive enhanced tax revenues, the revenues decreased and the care expenses for the unemployed increased.
That is the real world result of increased taxes.
Businesses don't pay tax, they only collect it.
Look, the yacht tax was a bad idea. Did not work for a lot of reasons. And was repealed. But it was never meant to solve the economic doldrums of the day. Just a point tax.
SO:
Currently the repubs are pushing the idea of lower taxes, and lower gov spending. I believe you think it is a great idea, as do a number of conserves on this site.
What I am asking you or anyone who is so disposed to believe the repub ideas are good, is simple: When did such a process, of in general reducing income taxes, did it work to make the economy better? During or shortly after ANY downturn in the economy. Or any perceived downturn. But not point taxes, actual federal tax rate decreases that affect the majority of the populace or a major segment of it.
Dems want to see tax increases in the form of curtailing the Bush tax cut , specifically for the well off. You all seem to see this as a REALLY bad idea. So show me where the repub ideas have ever worked.
Seems really simple.
For instance, I can document that in a bad economy, Clinton raised overall income taxes and the resultant economy was extremely good. I have shown you one of mine, lets see one of yours.
If you can't find such a case, then just admit it and maybe you can try looking for a case to support the other major idea of the repubs, namely decreasing gov spending. Again, if you can not, just admit you can not.