That's one of the biggest myth around, together with the notion that there is a linear relationship between costs and prices. What goods and services can ultimately be sold for has everything to do with market conditions, i.e. supply and demand. If market cannot support those goods and services at a lever higher than the costs of producing those goods and services, they just will either not be produced or the producers will attempt at all cost to cut costs, including moving the production activities to regions with lower production costs, and those costs include taxes, whether they are based on profit or not. We have more taxes that is not based on profit than is - value added taxes, capital taxes, inventory taxes, payroll taxes, etc. etc.
Of course producers can charge whatever price for their goods and services if the market is not efficient and their goods and services are essential to the living of the consumers, for the time being that is.
At 02:01 PM 07/10/1997 -0500, Joachim Knop wrote:
>I can't find the original message this quote came from:
>
>> Taxing profits merely passes those taxes through to the
>> >consumer."
>
>This assumes that taxes and prices have no influence on the choices
>we make. I'm certain Harry (if it's Harry's quote) had something
>else in mind.
>
>Joe
>
>
>
>----------------------------------------------------------------------
>Joachim Knop
>[EMAIL PROTECTED]
>http://www.ccccd.edu/cccc/directory/faculty/jknop/jknop.htm
>
>
Leo M. Lee (Wu7wah)
[EMAIL PROTECTED]
"Only strong personalities can endure history, the weak ones are extinguished by it."
Friedrich Nietzsche
