Source: The Dispatch
by Kevin D Williamson
“The Trump administration has a plan for inflation: Make it at least a little worse. I didn’t say it was a good plan. It is not the case, as one so often hears, that higher prices inflicted on producers or retailers — in the form of higher taxes, regulatory burdens, or, today’s topic, tariffs — are necessarily ‘passed on to consumers.’ That is a myth based on the fiction that sellers in the marketplace have the power to set prices unilaterally, which they do not …. Tracking down ‘tax incidence’ — who actually ends up paying the real economic costs of a tax — is a complicated business, and economists will disagree about estimates and models. What they do not disagree about is that taxes on businesses put upward pressure on prices and downward pressure on wages and other business expenses.” (02/14/25)
https://thedispatch.com/article/trump-tariffs-taxes-housing-prices-lumber/