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All costs in business get past to the consumer. The more running a business costs the more the consumer pays. If the price of the product is too high, the consumer refuses to pay and he company goes out of business, people are fired, etc.
Since I'm probably one of those to which you refer above, I will tell you that I have created and operated as CEO and CFO a very successful Construction Corporation, owned and operated 3 sole proprietor businesses which were very successful and overseen 4 non-profits...all at the same time. I have been deeply involved with the responsibility of making all of the above successful for over 50 years. I believe I understand economics better than any College/University professor that has never done my equivalent and probably has never functioned in the real world.
Bottom line...you are wrong.
you clearly don't know crap if you think companies drop prices in response to lower taxes. Are you going to try to tell me that if you got a tax cut you would bid all your jobs at a lower rate? What you bid on a job is what you think you need to bid to get the contract, if don't think you can make money on a job you don't bid on it.
nonsense, prices only drop when a company needs to move product, or if demand is decreasing take an economics course.
That is true when their is only one company offering a product. That is the busty of a free market system, any company can come a long and offer a competitive product at a lower price increasing its market share.
All costs in business get past to the consumer. The more running a business costs the more the consumer pays. If the price of the product is too high, the consumer refuses to pay and he company goes out of business, people are fired, etc.
This is pretty basic stuff here.
not that simple shooter, a business determines the price of it's goods and services on demand, if consumers refuse to buy the product the business quits selling it or drops the price- it has nothing to do with taxes. The cost to make an iphone6 is around $200 and they sell for $649 because a lot of people want them, and Apple has been very clever in determining how 'elastic' that demand is. All manufacturers try to find the sweet spot where they will move as much product as they can produce without flooding the market and causing the price to drop. Apples effective US income tax rate is about 3.7% (see link below) so on the retail price of that phone they paid $24.00. You could raise that to $200 and they would still have a better profit margin than any small to medium US based business will ever see in it's lifetime.
Did Apple decide to lower the price of it's Iphone because they pay less tax than any wage earner in the US? heck no they sold it for what they could get..that's how business works
Since I'm probably one of those to which you refer above, I will tell you that I have created and operated as CEO and CFO a very successful Construction Corporation, owned and operated 3 sole proprietor businesses which were very successful and overseen 4 non-profits...all at the same time. I have been deeply involved with the responsibility of making all of the above successful for over 50 years. I believe I understand economics better than any College/University professor that has never done my equivalent and probably has never functioned in the real world.
Bottom line...you are wrong.
You're not one of those people I was referring to, but since we're on the subject, you also did not understand my post. What you're not understanding is that all I'm saying is that without the federal government and a ****pile of regulations, the majority of wealthy people in this country wouldn't be wealthy. There's more to it than I care to write in a single post, but if you're actually what you say you are, then you already know why this is true.
And before you kids get all partisan on me, I'm a fiscal conservative that's made a few bucks in this world as well.
not that simple shooter, a business determines the price of it's goods and services on demand, if consumers refuse to buy the product the business quits selling it or drops the price- it has nothing to do with taxes. The cost to make an iphone6 is around $200 and they sell for $649 because a lot of people want them, and Apple has been very clever in determining how 'elastic' that demand is. All manufacturers try to find the sweet spot where they will move as much product as they can produce without flooding the market and causing the price to drop. Apples effective US income tax rate is about 3.7% (see link below) so on the retail price of that phone they paid $24.00. You could raise that to $200 and they would still have a better profit margin than any small to medium US based business will ever see in it's lifetime.
Did Apple decide to lower the price of it's Iphone because they pay less tax than any wage earner in the US? heck no they sold it for what they could get..that's how business works
But other phones have come into the market at a much lower cost. Hipsters buying a product for style points is outside of a normal business model. Most products are fiercely competitive with a make smaller profit margin where a tax change can either 1. Raise price or 2. Cause the product to no longer be sold in the same quantities which leads to a loss of jobs because people are not willing to pay a higher price for a product.
But other phones have come into the market at a much lower cost. Hipsters buying a product for style points is outside of a normal business model. Most products are fiercely competitive with a make smaller profit margin where a tax change can either 1. Raise price or 2. Cause the product to no longer be sold in the same quantities which leads to a loss of jobs because people are not willing to pay a higher price for a product.
so what if other phones have come on the market, people are still buying iphones, aren't they. Your argument is an epic fail. You said companies will reduce prices with lower taxes and I proved to you what a load of poop that actually is
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