TBH, I'd rather tax corporations (no loopholes), have them raise prices, than have a targeted sales tax applied. Even if price bc the same.
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Replying to @IronHeadJane
I'm glad you see that either way consumers pay the tax. What, then, is the difference between collecting at the factory vs. the register?
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Replying to @IronHeadJane @djinnius
People will consume what is available to consume, even at stupid prices. You can't consume what isn't produced.
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Replying to @IronHeadJane
So adding ten cents to the price of soda at the factory discourages production, but not at the cash register? Why would that be?
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Replying to @djinnius
Putting expenses directly on producer can be disincentive to production, tax on consumers doesn't directly hurt their bottom line.
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Replying to @IronHeadJane
In principle the effect should be the same. In practice, psychology is important, and who sees which charge matters.
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Replying to @djinnius
The psychology I'm basing my thoughts on are that people will consume what is available, companies won't produce without guaranteed margins.
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Replying to @IronHeadJane
I'm saying if you treat is as a math problem, the two are the same, reduce demand, hence production. It's not though, people decide things.
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Replying to @djinnius
It's not a math problem, it's a human behavior problem.
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Right, I agree. One person seeing a huge expense doesn't have the same effect as thousands seeing a tiny one.
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