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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Steve Dietrich who wrote (478398)	5/6/2009 4:03:02 PM
From: i-node	Read Replies (1) \| Respond to of 1573924

More nonsense from someone who doesn't understand economics. Ever heard of elasticity? Ever heard of markets? Companies ideally charge the price that maximizes profit. That price is not effected by taxes. It's effected by demand for their product. You mean [a]ffected. When you make changes to corporate tax rates, you're not dealing with the Firm, you're dealing with markets. It's the shareholders who would be hurt by higher corporate taxes, as profits would be less. There is no consensus view but those who understand economics and tax policy generally agree, for reasons I explained in my post to Ten, that pricing is determined, in part, by income tax liability. I know you have trouble with this so I'll give you a real-life example. When the price of jet fuel recently doubled, did the price of airfare stay the same? No, it didn't. Costs went up for all airlines (except a couple, who had hedged the problem away) and so airfare went up. Had it been income taxes instead of jet fuel, precisely the same thing would have happened. Obviously.