Quote:
Originally Posted by old-fart
There is no debate that the Green Shaft will raise the price of everything. It is simple math. Companies will NOT just eat the increase in costs - they will pass those costs on to the consumers. The price of gas WILL go up - the Liberals claim there will be no new tax at the pump, which might be true, but the oil companies WILL pass on the increased costs imposed on them by the Green Tax Shaft. Anything that needs to be transported to the end consumer (which is pretty much everything) WILL go up in price as those companies are forced to pay higher costs for that transportation.
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Huh. I could have sworn we were still in a free market economy. In most competitive markets, prices are set at what the market allows, not at a set margin above supplier costs. Any new taxing system forces manufacturers and vendors to make a choice between two options: maintain the current price point and take a hit to their profit margin, or raise prices if they think that the market will allow it. Some will opt for the former, some for the latter. You can argue the merits of forcing businesses to choose between a lower profit margin or a higher price point, and make a valid case against the Green Shift based on that. But to suggest that it's simple math that the retail cost of everything will go up suggests a simple understanding of economics.