🚀 go-pugleaf

In article <*> kenb@ee.ubc.ca (Ken Buckland) writes:
>
>The idea that if corporations are taxed, somehow consumers will get off the
>hook is absurd.  
>Obviously corporations will pass the cost of new taxes on to consumers.  

This is obvious only when the corporation has what the economists call 
an "inelastic" demand for their products.  For example, foods like milk,
and ICBC insurance for a taxi-driver, basically have an inelastic demand.

If the demand for the product is "elastic", e.g., $8.50 per person for a 
movie at the cinema, then the consumer can choose to consume less, 
i.e., wait for it to come out on video, and then rent it for $5.00 per family.
In this case, the corporation must examine their financial books,
balance the increased fees against decreased demand, and see how it 
affects the bottom line -- the "profit" or "return on investment".