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NY - NJ Hudson River Tunnel Bites the Dust

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[quote user="schlimm"] <blockquote> <div><img src="/TRCCS/Themes/trc/images/icon-quote.gif" /> Bucyrus:</div> <div></div>    If a business has a cost overrun, why should anyone other than the business or its investors care? <div style="clear:both;"></div>   </blockquote> Since the mantra of many "free market" advocates is that all corporate taxes are ultimately passed on to the end consumer, it follows that the cost overruns can be as well.  Since in many cases we do not actually have a competitive free market, the market does not act to restrain the pass through. <div style="clear:both;"></div> [/quote]  <o:p></o:p> Corporate taxes can be passed onto the consumer because they are levied as an expense on all corporations, and therefore, there is no competitive force acting from one corporation to another that prevents the cost from being passed to the consumer.   <o:p></o:p> A cost overrun or any cost other than taxes can be controlled by each individual corporation.  So if a corporation suffers some kind of cost increase and tries to pass it on to its customers, they will just shift their purchase to another corporation that has lower costs, and therefore can charge a lower price.  <o:p></o:p> So it does not follow that because corporations can pass on their corporate taxes to the consumer, they can also pass on other costs.
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