Comment Re:just what we all love (Score 1) 243
Can't you both be right? price changes tend to happen in chunks throughout the supply chain. Your aluminum is $2/kg from the supplier and then one day they tell you it is now $2.25. You suck it up for a while but then when they raise it again to $2.35 you finally say now we need to charge the customer more. That is why everything in Walmart can be *.97, you don't see a whole bunch of 1.36 products etc. prices move (stupid new keyboard is defective p apparently doesn't work with the shift key, nice) because they retailer has a pricing model, whether it be a standard ending on the end of prices, or "brackets" they place different categories of goods into etc.
I agree though: taxes on profits not total revenue does help a lot though. Same thing with the personal tax rate. When people say you can raise the top bracket it is just silly. 1) If you were making $300k and they changed the tax rate would you chose to stop at say $200k so you wouldn't hit the new high bracket or would you "settle" for making $275k this year? people tend to get used to making a certain amount and plan their spending accordingly. Which means they are still highly incentivized to earn (before tax) at least as much as before the tax rate hike. 2) A lot of high earners aren't making their money by salary: they are "choosing" to make X amount of money every year regardless of the tax rate. How much they keep and how much the tax man gets doesn't really affect them much. The investments, creative works whatever are already done. New investments needing bank loans might be another issue but that is what equity is for. If equity does get spread out because they can't get favorable loans, it will likely go at favorable multiples, which means the same revenue gets split more ways, less people in the top bracket and we get a more balances wealth distribution with fewer and fewer people hitting the "unfair" high bracket.