I like an honest man who will admit that he cooked the books. Economics creates the land where fairy tales may come true; such as Tax rates basically alter the purchase patterns of Consumers, especially in the existence of serial Inflation. Consumers buy their Products because they need or desire those Products, and there will never be a direct correlation between Tax rate and purchase decision. I bet my Readers are now contemplating I am about to start a tirade to insist that Tax rates are more sporadic in design and force. I am not, though there is a good argument to be made on that point.
I am going to generate a sleight of hand, and attempt to cook the books for my own thought pattern. Tax rates are relatively non-reactive in the Markets, if they are set at reasonable low levels; here I am talking somewhere below 25% of the price of total value Transactions. I say this to outrage Economists, before heading totally off-tangent in a new direction. The subject I will talk about is the total lack of impact of Tax remission eliminations. End-Consumers must pay for the full value of the Tax, whether there are reductions of that Tax for the Producers in gift deductions; they not affecting the Product price at all at the primary point of Sale. There are very good arguments for suggesting there is much provisional restrictions on 2nd Generation of Production provision, though even these are somewhat hollow as most Business wants to stay in business, and alternate production is always capitalized if there is unfulfilled Consumer Demand.
Here is where my argument gets highly contemplative–this means a great lack of Proof, and some degree of Doubt. I suggest that Tax remissions, increasing or decreasing, do not affect Price scheduling in the slightest. Product Prices are determined by the Tax rates, and Business does not pass on any Savings from Tax remissions back to the Consumers. I am so clear in this belief that I would claim no alteration in Price schedules after elimination of Tax remissions due the actuality of competition–both domestic and International. There I have proved the two main elements to as great a degree as I ever devote–no unfilled Consumer Demand, and no alteration of Prices higher or lower–after elimination of Tax benefits to Producers. I await the screams of my fellow Bloggers. lgl