Quote:
Originally Posted by Tinordi
Not true because the price of tickets are not at the clearing price for equilibrium. If they were there wouldn't be a secondary market for scalpers because the tickets would be set at the market price.
In this sense where demand for tickets exceeds supply at the current price then you can confidently assume that the flames well simply increase ticket prices by the tax value with no associative reduction along the demand curve.
Fundamentally what the tax doors is to remove consumer surplus and transfer that benefit to the flames.
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You're cherry picking the expectation of higher demand than supply in the future. Ask any season ticket holder how prices on the secondary market held up against their season ticket price for a few years prior to December (it was negative).
If you want to argue against economic theory of supply and demand or suggest that the Flames are charitably pricing their tickets low then knock yourself out. But it's a red herring. A fundamental understanding of finance and steady state economics dictates that the burden of a ticket tax falls on the people who will collect ticket revenue in the future (i.e. CSE).
Now, that burden can be somewhat alleviated to less than $250M in present value by lending at an artificially low rate. That I will give you. But the vast majority of the burden will still fall on CSE.
edit: to further debunk your myth that a ticket tax transfers benefit from the consumer to the Flames, the Flames can simply do that now by jacking ticket prices. Once again, this transfer of benefit story is a red herring that has nothing to do with ticket taxes.