It literally doesn’t. The price is the same either way. Reduced demand from the higher tax makes it so producers will lower prices. This is really basic microeconomics.
From Wikipedia: “tax burden does not depend on where the revenue is collected, but on the price elasticity of demand and price elasticity of supply”
enragedchowder@lemmy.ca 2 years ago
It literally doesn’t. The price is the same either way. Reduced demand from the higher tax makes it so producers will lower prices. This is really basic microeconomics.
From Wikipedia: “tax burden does not depend on where the revenue is collected, but on the price elasticity of demand and price elasticity of supply”
en.m.wikipedia.org/wiki/Tax_incidence
irmoz@reddthat.com 2 years ago
I have never once seen this happen… i just see prices rise
enragedchowder@lemmy.ca 2 years ago
Do you actually think that 100% a tax burden will always fall on consumers?