enragedchowder
@enragedchowder@lemmy.ca
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- Comment on Sweet tea 1 year ago:
Do you actually think that 100% a tax burden will always fall on consumers?
- Comment on Sweet tea 1 year 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”
- Comment on Sweet tea 1 year ago:
It doesn’t make a difference which side you tax. If consumers are taxed then corporations will still feel it through reduced demand for their product. If corporations are taxed, consumers will still feel it through increased prices. The tax burden does not depend on who is taxed, but rather how elastic supply and demand are.