Taxing Profits

The idea that taxing corporate profits will raise consumer prices is deeply flawed. People who think this must not understand economics.

You see, corporations must maximize their response curve to generate the most profit. Taking a percentage of their profit doesn’t change the response curve. In response to a percentage of their profit being taxed, there’s still no more optimal place to price except on the same place on the response curve that generates the most profit.

DUH.