tag:blogger.com,1999:blog-1141932539860553199.post2399273542913388539..comments2024-03-05T10:52:24.691+00:00Comments on Mark Wadsworth: The impact of Sales Tax on selling pricesMark Wadsworthhttp://www.blogger.com/profile/07733511175178098449noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-1141932539860553199.post-972174845468553862015-07-19T12:41:19.370+01:002015-07-19T12:41:19.370+01:00D, again, that is the dilemma.
Most retailers cha...D, again, that is the dilemma.<br /><br />Most retailers charge much the same prices every in the country. The smaller the country the lower the differences so in the UK prices for goods are more or less the same everywhere.<br /><br />Is this evidence of collusion by retailers (pushing prices up) or evidence of fierce competition (pushing prices down)..?<br /><br />Nobody has ever proved the former and there is lots of evidence for the latter e.g. in this post.<br /><br />More to the point, if retailers did have pricing power (i.e. the ability to restrict supply to the profit maximising point), then higher sales taxes would lead to higher prices.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-27787237500630516792015-07-19T12:08:42.825+01:002015-07-19T12:08:42.825+01:00I follow your reasoning that evidence is paramount...I follow your reasoning that evidence is paramount. However don't you think there is an absence of supplier price competiton in that model.Dinerohttps://www.blogger.com/profile/14632385731642361211noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-90300020149495327002015-07-19T10:37:37.507+01:002015-07-19T10:37:37.507+01:00L, that is my preference too.
Phys, I have done t...L, that is my preference too.<br /><br />Phys, I have done the thought experiment with duty free market stalls before, but the Homeys shot the idea down in flames: "In that case why shouldn't private landowners be allowed to declare their land to be tax free and charge higher rents?" etc.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-40399703277996447492015-07-19T08:41:26.678+01:002015-07-19T08:41:26.678+01:00You can see the same thing in duty-free shops at a...You can see the same thing in duty-free shops at airports and on ships. They are only slightly less than normal shop prices. This adds up to increased profits, which are claimed as higher rents. These in turn end up in the airport owners' profits and are in theory taxable as corporation tax. So duty-free need cost the government nothing in lost tax.<br /><br />You could set up tax-free marketplaces where the stallholders bid for the pitches and paid a charge to the local authority. The local authority might then deduct the running costs and remit the surplus to HMRC. It would probably yield at least as much as the tax that would have been collected in the normal way, and without a mass of paperwork.Physiocrathttps://www.blogger.com/profile/13682019625346594568noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-65110835282277025802015-07-18T10:16:22.860+01:002015-07-18T10:16:22.860+01:00JH. Well, I will. My preference is for the seller...JH. Well, I will. My preference is for the seller to quote both the net and gross of VAT prices. Makes one think.Lolahttps://www.blogger.com/profile/04586735342675041312noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-70032264591775923392015-07-17T19:49:56.310+01:002015-07-17T19:49:56.310+01:00JH, that's against the law anyway.JH, that's against the law anyway.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-22345623337837057722015-07-17T19:03:50.840+01:002015-07-17T19:03:50.840+01:00I'll not buy from someone who gives a price ne...I'll not buy from someone who gives a price net of VAT.James Highamhttps://www.blogger.com/profile/14525082702330365464noreply@blogger.com