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SQUEEKY2's avatar

Who does the consumer (tax payer)pass their costs to?

Asked by SQUEEKY2 (23122points) May 3rd, 2021

Let me explain, when costs go up for business they pass those costs down to the consumer, heaven forbid they carry any of those costs.
When the Government’s costs go up they pass those costs to the taxpayer.
So when the consumers costs go up who do they pass those costs on to?

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9 Answers

Tropical_Willie's avatar

Sorry buddy but the old saying the buck stops here applies.

Kropotkin's avatar

We just make do with less disposable income or more debt.

On the second part, government spending is not a burden for tax payers. Government spending is income for the private sector. It doesn’t have “costs” as it does not act as a household with revenue constraint.

SQUEEKY2's avatar

@Tropical_Willie And our fright wing friends disagree with me when I say the little guy pays all the bills.

Tropical_Willie's avatar

They’re hoping to win the lottery and make more than $400K – - they don’t want to pay the taxes.

The option could be to go to your boss and tell him you need a raise; to pay for him being in a lower tax bracket because he make so much money.

stanleybmanly's avatar

They pass their “costs” on to their kids. It’s called the decline in their standard of living, and we currently experience the American dream as the desire to somehow get out of debt.

SQUEEKY2's avatar

@stanleybmanly I’m a Canadian and achieved that one, the relief and burden that was lifted from us was amazing I now can work less hours and have a bit of a life.

janbb's avatar

They can buy less stuff.

elbanditoroso's avatar

We either absorb the costs, or we buy less.

So in essence, we pass the cost on to the merchant, who sells list, makes less profit, and whose business is reduced.

In the end, raising prices comes back, after a while, to every step of the supply chain.

kritiper's avatar

The consumer is merely a cog in the wheel, an segment of an arc. They pass their costs on, so to speak, to their employer through their employment.

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