Quote:
Originally Posted by rubecube
The market is always going to dictate prices far more than taxation will. It's the reason prices don't go down when taxes do.
Increased volume can also make up for reduced margins. It's not like a lot of these companies are operating on such slim margins that a 2-5% tax hike is going to necessitate a price increase.
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Tax increases on input costs such as property tax also reduce profits. It’s nice to think a business owner can just turn up the volume to 11 to make up for reduced margins but it doesn’t work that way.