1 minute ago, MidMoFo said:

 

You don’t think toilet paper sellers would raise the price of toilet paper by 10-15% right now without a tariff and keep the money if they would still sell the exact same amount?

What the hell are you even talking about?

It is ridiculous to say that on one hand tariffs will increase the cost of goods to a consumer, but an increase in corporate tax rate would not.

4 minutes ago, BBE said:

What the hell are you even talking about?

It is ridiculous to say that on one hand tariffs will increase the cost of goods to a consumer, but an increase in corporate tax rate would not.

Sure, suppliers would raise the price and blame it on a tariff, corporate tax hike, fuel costs, trucking cost, shortages… any reason they can come up with… but if you believe in the free market, pricing would then readjust to the price that makes the most money. That’s why businesses sell things… to make as much profit as possible, right?

So if they raise the price by 10% and sales go down, what are they going to do next?

40 minutes ago, MidMoFo said:

Sure, suppliers would raise the price and blame it on a tariff, corporate tax hike, fuel costs, trucking cost, shortages… any reason they can come up with… but if you believe in the free market, pricing would then readjust to the price that makes the most money. That’s why businesses sell things… to make as much profit as possible, right?

So if they raise the price by 10% and sales go down, what are they going to do next?

The issue you present is that increased profit results in increased tax liability and that creates a slightly more complex situation than simple supply and demand.  Price can go up, production rates can go down, personnel reductions all are in play.  

4 minutes ago, BBE said:

The issue you present is that increased profit results in increased tax liability and that creates a slightly more complex situation than simple supply and demand.  Price can go up, production rates can go down, personnel reductions all are in play.  

And they always will be, but if the market for ANY product could be marked up 10% and demand would stay the same, the price would already be marked up 10%.

2 minutes ago, MidMoFo said:

And they always will be, but if the market for ANY product could be marked up 10% and demand would stay the same, the price would already be marked up 10%.

And if the entire market goes up 10%, 20%, or more the demand stays relatively unaffected.  Look at where we are now.

2 hours ago, MidMoFo said:

 

You don’t think toilet paper sellers would raise the price of toilet paper by 10-15% right now without a tariff and keep the money if they would still sell the exact same amount?

No because someone would undercut them because their costs are lower. If everyone’s costs go up and people start panicking buying like during any snow storm or disease that starts going around toilet paper is one of the first things to go and prices go up. 

11 minutes ago, MidMoFo said:

And they always will be, but if the market for ANY product could be marked up 10% and demand would stay the same, the price would already be marked up 10%.

Do you actually check the price of toilet paper and not just buy your favorite brand?

4 minutes ago, BBE said:

And if the entire market goes up 10%, 20%, or more the demand stays relatively unaffected.  Look at where we are now.

Look where we are now with inflation? A 10, 20 or 30% increase across the board was pretty easy for industries with only 3 or 4 companies controlling the market. The price is already set as high as it can be without curbing consumption. There’s not enough competition anymore.

Have you ever sold a house? Did you figure the selling price by how much it cost you then add closing costs, taxes paid, improvements made? Or did you set the price by the highest price someone would be willing to pay for it?

13 minutes ago, 20dawk4life said:

Do you actually check the price of toilet paper and not just buy your favorite brand?

3 companies make over 80% of the toilet paper in the USA. Do you think they would rather undercut the competition or raise prices to match? 

9 minutes ago, MidMoFo said:

Look where we are now with inflation? A 10, 20 or 30% increase across the board was pretty easy for industries with only 3 or 4 companies controlling the market. The price is already set as high as it can be without curbing consumption. There’s not enough competition anymore.

Have you ever sold a house? Did you figure the selling price by how much it cost you then add closing costs, taxes paid, improvements made? Or did you set the price by the highest price someone would be willing to pay for it?

Once again, your hypothetical is not based on a tax on profit applied to every entity in the market.  The price will go up.  Demand may drop temporarily, but as we have seen, demand is nowhere near as price sensitive as one would think.

36 minutes ago, BBE said:

Once again, your hypothetical is not based on a tax on profit applied to every entity in the market.  The price will go up.  Demand may drop temporarily, but as we have seen, demand is nowhere near as price sensitive as one would think.

I’m not arguing that prices wouldn’t go up. They will absolutely go up for any possible reason that can be found to raise them. But the market would re-adjust, I’m guessing closer to the original price than the new one, because prices are already set as high as consumers are willing to pay. And we have a lot of really dumb consumers who just max out another credit card…

Let me be clear, I think tariffs are a terrible idea, especially for consumers.

And so is an increased corporate tax rate.

22 minutes ago, BBE said:

And so is an increased corporate tax rate.

Difference is, the President can unilaterally increase tariffs as long as he wraps it in some BS national security line like in 2018, but the President needs Congress to increase the corporate tax rate. 

1 hour ago, MidMoFo said:

3 companies make over 80% of the toilet paper in the USA. Do you think they would rather undercut the competition or raise prices to match? 

Considering they’ll make more money selling more and keeping costs low they will fight for the lowest cost while maintaining a competitive margin to keep people coming back. 
 

If you raise their costs they will raise their prices to match or go higher depending on demand

 

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