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From: rfb@cmu-cs-h.ARPA (Rick Busdiecker)
Newsgroups: net.taxes
Subject: Emporer's new clothes (Wrong-O Mary-Lou)
Message-ID: <226@cmu-cs-h.ARPA>
Date: Fri, 5-Jul-85 17:19:32 EDT
Article-I.D.: cmu-cs-h.226
Posted: Fri Jul  5 17:19:32 1985
Date-Received: Thu, 11-Jul-85 05:29:31 EDT
Organization: Carnegie-Mellon University, CS/RI
Lines: 16

re: Emporers new clothes

If there were no competition in the market place then "ayers@convexs.UUCP"
would be correct in assuming a direct connection between higher corporate
taxes and higher prices.  However, because there is competition, there is not
a clear link.

Higher corporate taxes mean that in order for the corporation to maintain
profit levels they must increase prices.  The consumer must then pay higher
prices IF THEY BUY FROM THE CORPORATION!  The same product may be available
from smaller companies in which case, the corporation will either have to
(a) decrease its profits to remain competitive, or (b) raise prices to keep
profit levels, and lose some of its customers.

				Rick Busdiecker
				rfb@cmu-cs-h.arpa