On Jul 10, 2010, at 12:01 PM, Eric Beck wrote:
> On Fri, Jul 9, 2010 at 8:21 PM, Shane Mage <shmage at pipeline.com>
> wrote:
> "... In the "real world" corps are "imperfect" or "monopolistic"
> competitors--ie., oligopolies. So they set their prices to maximize
> profits, which are the same prices whether the profit being
> maximized is pre-tax or post-tax...."
>
> While maybe not disagreeing with your conclusion here, your logic
> seems to be wrong...
Corporate prices (oligopoly prices) are generally set to maximize pre- tax profits.
Changes in income-tax rates do not affect pre-tax profits.
Therefore changes in income-tax rates that equally affect all oligopolistic competitors do not generally affect corporate-set prices.
What's wrong with the logic?
Shane Mage
The communist creed: From each according to his ability, to each according to his need.
The capitalist creed: From each according to his gullibility, to each according to his greed.
Joe Stack (1956-2010)