Second Response: When the cost cutting results in superfluous profits that means that the savings are not benefiting the consumer. They are going into the pockets of the seller. The seller is benefiting more than needed to keep the system working. The tax forces the seller to pass any such cost cutting on to the consumer or the workers, both of which are things we want. Cost cutting that only benefits the seller is not something we want.

Graduate of Stanford University & U.C. Berkeley Law School. Author of 17 novels and over 200 Medium columns on Economics, Politics, Law, Humor & Satire.

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