Higher tax rate won’t guarantee more revenue

posted by
July 27, 2011
The Tennessean
by Richard J. Grant  
Posted in Commentary

"It is often said that business taxes, such as the corporate income tax, are simply passed on to consumers through higher prices. But it is not that simple. If companies could just raise prices to cover their higher costs, why didn't they just put their prices that high in the first place? When a company raises its prices, some customers stop buying, and others cut back on their purchases. This is especially true if competitors do not raise their prices." (07/24/11)


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