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Your wrong here..I am with a big company. We will be hit with many millions of new taxes with healthcare law next year. We are definately passing the amount in new taxes we pay in prices to consumers.....that means more out of pocket expenses at the hospital...
I'd like to what know what business paid "many millions in new taxes" for a law that hadn't even been implemented yet.
Your point is that taxes = price increase. I'm saying you can't make a simplistic connection like that b/c there's more to factoring in price than just taxes. Taxes are just one part of overhead. Wages, benefits, rent, utilities, loan repayments, etc. All these contribute to overhead. If the gov't raises corporate taxes, and company A offers dental insurance and company B doesn't and all the other overhead is equal, then company A has the option to cut it's dental insurance program to offset the tax hike. Company B doesn't and it can't raise prices b/c Company A is still charging the pre-tax-hike price.
If company A and company B are already offering different benefits, who do you think is retaining the best employees and therefore producing the best product? It's more than just widget prices, fine, but when you lower overhead, where does that money go? In the vast majority of cases, competition stops it from just disappearing into someone's pocket. That's not competitive behavior, so in a competitive market, it won't last long.
I mean, are you really making the argument that overhead does not matter?
Your point is that taxes = price increase. I'm saying you can't make a simplistic connection like that b/c there's more to factoring in price than just taxes. Taxes are just one part of overhead. Wages, benefits, rent, utilities, loan repayments, etc. All these contribute to overhead. If the gov't raises corporate taxes, and company A offers dental insurance and company B doesn't and all the other overhead is equal, then company A has the option to cut it's dental insurance program to offset the tax hike. Company B doesn't and it can't raise prices b/c Company A is still charging the pre-tax-hike price.
That's why it's too simplistic to just say taxes = price increases.
Your wrong here..I am with a big company. We will be hit with many millions of new taxes with healthcare law next year. We are definately passing the amount in new taxes we pay in prices to consumers.....that means more out of pocket expenses at the hospital...
That's your company's choice. If another company has that same choice to make and that price increase is the difference between keeping & losing customers, they'll find somewhere else to offset the hike.
I am a small business owner... I'm going to pass the cost on to my customers and they expect me to... They in turn will pass my increases as well as their own on to their customers.... Double whammy.. Enjoy the increased cost!!
If company A and company B are already offering different benefits, who do you think is retaining the best employees and therefore producing the best product? It's more than just widget prices, fine, but when you lower overhead, where does that money go? In the vast majority of cases, competition stops it from just disappearing into someone's pocket. That's not competitive behavior, so in a competitive market, it won't last long.
I mean, are you really making the argument that overhead does not matter?
Are you serious?! Where do I even come close to saying overhead doesn't matter?
Read this again and judge for yourself if I'm making the argument that overhead doesn't matter:
Quote:
Some companies have more room to offset taxes in other places that aren't price increases, so that forces competitors to also offset in places that aren't price increases, unless the want to risk being uncompetitive.
I am a small business owner... I'm going to pass the cost on to my customers and they expect me to... They in turn will pass my increases as well as their own on to their customers.... Double whammy.. Enjoy the increased cost!!
And if you get a tax cut, are you also passing that on to your customers...
If you want to understand, you can do the work. You have to want to understand more than I want you to understand! This is America! Lift yourself by your bootstraps and DO THE WORK... The context is obvious with minimal reading comprehension! Good luck!
I'm asking you for your interpretation of a statement you made. The only way I learn is asking the source of the statement, which is you.
You are obviously making statements that you not only can't back up, but don't understand yourself.
Yeah, I will have to, in order to remain competative... Right now, small business is strapped to the wall, we are going to pass on ANY increases.
And if some of your competitors decide to keep their prices the same and make cuts elsewhere should taxes increase, will you do the the same to remain competitive or still just pass it on to your customers?
Are you serious?! Where do I even come close to saying overhead doesn't matter?
You're saying that even if we lower overhead, prices will remain the same. So what happens if we increase overhead? What happens if we increase overhead, then next year, we decrease it, will prices go down then?
It's not a sound argument. It's predicated on assumptions and anecdotes, such as the one that one of two direct competitors has some magical way to offset taxes that is somehow out of reach of the others.
Again, the most competitive company will come out on top. You lower overhead on all companies, you give all companies room to undercut their current pricing and that of their competitors. With any type of competition in the marketplace, this will happen. These are basic economic realities.
How can you argue with the fact that lower overhead allows for lower prices? And if you accept that, how can you argue with the fact that if competition exists, companies will attempt to undercut their competitors?
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