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From: mark@uf-csg.UUCP (mark fishman [fac])
Newsgroups: net.flame
Subject: Re: Corporate Taxes
Message-ID: <201@uf-csg.UUCP>
Date: Sun, 30-Sep-84 15:13:58 EDT
Article-I.D.: uf-csg.201
Posted: Sun Sep 30 15:13:58 1984
Date-Received: Sun, 7-Oct-84 09:04:21 EDT
References: <947@trwrba.UUCP>, <2274@sdcc3.UUCP>
Organization: Univ of Fla, Computer and Information Science
Lines: 22

<>
     No.  You don't understand economics at all.  If corporations were able to
recoup the entire effect of tax hikes
by raising prices, they would have no aversion to tax hikes -- which manifestly
isn't the case.
     For goods of some degree of "elastoicity of demand," there is only a
finite extent to which prices can be raised before consumers start to buy
less of them.  Only *some* of the price hike can thus be passed on, consistent
with the maintenance of maximized profits under the new prevailing system,
and fewer proits are hence channelled from the pockets of the consumer into
those of the people (not, fascist calumny to the contrary notwithstanding,
average people) who own the corporations.  Some of it (the profit) is thus
channelled into government.

     fortunately for the corporations, though, they are well able to buy
government, so that much of the taxes which might otherwise be spent in a
manner beneficial to the public go right back into the coffers of defense
contractors.
     Ain't life wonderful?