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Response to MillennialDem (Reply #37)

Sat Dec 19, 2015, 01:03 PM

38. Not true

It has the exact same effect as a raise in oil prices has on airline companies. They all pass on the higher costs through to the consumer. Anyone could have "broke ranks" and undercut their competitor at any time, even prior to the new tax. Competitive differences in prices comes in through driving efficiency in other areas, but there is no way to make a new tax more or less efficient and therefore simply raises the entire production costs similarly to all competitors. No competitors have an advantage per se, when it comes to that extra two dollars.

All the tax does is raise the final price, which results in lower sales volume overall. This is basic economics 101.

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