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Copyleft, first, please do not talk about anyone's ignorance of basic economics...glass houses and all that. <br> <br> With that said, you are correct in one respect....yes, corporations cannot just raise prices infinitely. But this is for exactly two reasons: 1) eventually, no one will buy their stuff, 2) competition will lower prices and kill them.<br> <br> Let's us an example and I hope you read this and follow along... I know others have given up hope on you, but I am still going to try:<br> <br> Company A is producing widgets and selling them at a small profit (it has to be small because of free market competition...as you yourself pointed out). Suddenly, taxes go up and it no longer makes sense to sell widgets at the current price....it's not enough to cover their increased expense. They now have 2 choices: raise the price, or stop making widgets and close down. Well, with increased taxes on everybody, all corporations are affected the same way, so they can all raise prices just enough to cover the increased cost and still stay in business (hopefully). However, as you so rightly pointed out, after a point no one is going to buy your product. If no company can sell widgets at a profit, they will all stop making them. As you can see, lowering prices is never an option, and since, due to competition, your profit margins are already too small to absorb a big cost increase, you really only have 2 choices: Raise prices which everybody will have to pay, or stop making the product. So that translates to either higher prices or lost jobs. Terrific.<br> <br> It's really funny, Copyleft, because you said it yourself: "infinite cost-absorption does not exist in the real world" and you are 100% correct...<br> <br> That includes the costs of higher taxes!!!<br> <br> Now, about corps moving money overseas.... we are talking about where they are holding cash to avoid taxes, not where they set up operations such as factories, etc. Two different things....so your "sweatshop" argument does not apply here. And in any case, your statement that taxes aren't a big portion of cost is inane...35% is a HUGE portion of cost. By Twistedsaint
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